High employee turnover is not an inevitable cost of business but a preventable problem rooted in poor leadership. It stems from failures in providing recognition, promotional opportunities, and fair benefits. The financial impact is massive, costing up to 300% of an employee's salary to replace them, representing a significant, curable drain on the bottom line.

When a company consistently misses sales goals, the root cause may not be the sales strategy but a failure in the hiring pipeline. A high employee churn rate combined with an inefficient screening process starves the sales team of the necessary manpower to hit its targets.

Failing to hire senior leaders 6-9 months ahead of need creates a leadership capacity gap in hyper-growth. This forces last-minute, high-effort plays to barely make the number, when a well-staffed team would have exceeded it. Plan for the long lead time of finding and ramping senior talent.

Hiring executives from large corporations like Google or Microsoft into an early-stage startup almost always fails due to a 'massive impedance mismatch.' Their expectations for established processes clash with the startup's reality. HubSpot experienced a near-100% attrition rate with these types of hires.

Companies often hire executives from target customers to influence product and sales. These hires dictate features based on anecdote, consuming development resources for little return. When their promised sales fail to materialize, they are quietly dismissed.

Instead of an extremely difficult hiring process, Netflix casts a wide net and uses the first year to assess fit, resulting in a high (~20%) attrition rate. The company is transparent about this, offering the chance to work on hard problems with great people in exchange for less job security.

Teopo Capital prioritizes rigorous post-hire evaluation. They believe the true assessment of a candidate's fit and capability occurs on the job. The greatest risk is not making the wrong hire, but failing to act swiftly when they underperform, making quick termination crucial for risk management.

CEOs leading companies over 100 employees dedicate up to half their time to recruiting their executive team. Their primary concern becomes building the leadership layer and designing the organization, a significant shift from the focus of CEOs at smaller companies.

High-performing CEOs don't hesitate on talent decisions. One mentor's advice was to act immediately the first time you consider firing someone, as indecision only prolongs the inevitable and harms value creation. This counteracts the common tendency for CEOs to be overly loyal or fear disruption.