True Cost of an Employee (opens a tool overlay)
What will this hire actually cost each year?
People and human resources
Should you hire now or clarify the work first?
Your business. Your figures.
Test whether the need, role, funding and supervision are clear before adding payroll. A high score supports preparation for hiring; it does not select a candidate.
A new hire can add useful capacity, but can also become an expensive response to an unclear process. Before increasing payroll, a business needs evidence of recurring work, a defined role, a viable budget and someone able to support the person. This check examines eight preparation conditions. It helps distinguish a genuine capacity requirement from a problem that may first need clearer priorities, better handovers or a more reliable operating method.
Start with the work rather than a preferred job title. Identify what is not being completed, how often it occurs and what consequence follows. Observe whether the pressure is recurring or a temporary peak. A backlog caused by missing information will not necessarily disappear when another person joins. Likewise, a process that depends on constant founder intervention may need clearer authority before an additional employee can work effectively.
Consider alternatives without assuming that the cheapest option is automatically best. Redistribution, process repair, a bounded temporary arrangement or additional training may address some needs, while a permanent hire may be appropriate for sustained work. Define the outcomes, selection criteria and onboarding plan for the proposed role. Include the full employer cost and the management time required, rather than budgeting only for the advertised salary.
The eight ratings are converted from one to five into a zero to one hundred scale and averaged. Each condition has equal weight in the published rubric. The result measures preparation for a hiring decision under your answers. It does not select candidates, predict employee performance or establish that a particular contract type is appropriate. A high score means the stated foundations are more established, not that recruitment must proceed.
Read the lowest questions as missing conditions to resolve. Weak evidence of need calls for workload observation. Weak process clarity calls for a teachable method. Weak affordability requires a cash and cost review. Weak management capacity means someone must make time for direction and feedback. A strong average should not override an essential unresolved condition, particularly where the business cannot fund the role or provide the access needed for it.
Turn the result into a short hiring brief. State the work to be owned, the first useful outcomes, the person responsible for supervision and the resources available. Define selection evidence that relates to the actual role. Prepare a realistic induction sequence that introduces the systems, people and decisions the employee needs. Then check the commitment against a downside cash scenario before making promises that the business may struggle to sustain.
This is a transparent planning calculation or self assessment, not a sector benchmark, professional valuation or a prediction of an outcome.
The scorecard does not provide employment law advice, determine lawful recruitment criteria or assess the fairness of a selection process. It also does not verify affordability from bank records. A budget can look comfortable while collection timing creates payroll pressure. Use a dated cash forecast and current professional guidance for the actual employment arrangements.
Readiness can change between opening a vacancy and making an offer. Customer demand, workload, funding or management availability may shift. Recheck material assumptions before committing. Avoid using a low score as a general argument against employing people, or a high score as justification for rushing selection. The useful decision is the one supported by the current work and operating conditions.
Read the full limitations or explore how Ayodeji approaches this work.
No. Check whether the backlog comes from sustained demand, rework, missing inputs, unclear priorities or a bottleneck elsewhere. More people help only if their capacity addresses the relevant constraint.
Include access, essential training, introductions, supervised work, feedback points and a small number of observable outcomes. Avoid expecting immediate independence in a process that has never been explained.
Experience matters when it relates to the work, but role fit, capability, expectations and support also matter. This tool prepares the decision; it does not rank applicants.
Use full employer cost, realistic receipt dates and a downside scenario. Include equipment, recruitment and onboarding payments when they actually fall due, rather than spreading every cash commitment evenly.