Let's say to were making $50,000 per employee in revenue and paying each employee $80,000. You'd be losing money on each hire (and therefore would begin firing people). If you were able to make an additional $100,000 per new hire, you'd continue to hire until you cannot make marginal gains. It's no surprise that the number ends up being 2-3x salary / employee. That's what would be most profitable.
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Let's say to were making $50,000 per employee in revenue and paying each employee $80,000. You'd be losing money on each hire (and therefore would begin firing people). If you were able to make an additional $100,000 per new hire, you'd continue to hire until you cannot make marginal gains. It's no surprise that the number ends up being 2-3x salary / employee. That's what would be most profitable.