Diminishing Marginal Utility: Evaluating the Long-Term Value of Hiring Executives (Natalie Stones)
As a small business owner or startup founder, you understand the importance of hiring the right people for your organization. It’s what enables you to grow, succeed, and ultimately achieve your goals. Yet, hiring can also be a challenging and costly process, particularly when it comes to hiring executives. Hiring your leadership team is a crucial decision that can catapult your organization's success, but can also burn through your runway. The impact provided by these executives can also start to diminish over time, making it difficult to determine whether hiring them long-term is worth the investment (salary, benefits, equity, bonus). In this post, we’ll explore what diminishing marginal utility is, how it applies to hiring executives, and alternative ways to consider executive hiring. What is Diminishing Marginal Utility? Understanding the concept of diminishing marginal utility is necessary to evaluate the long-term value of hiring new executives. At its most basic level, it...