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KEYPOINTS
🔑 Evaluating a company's employee mix provides insights into its capability to achieve future growth objectives.
🔑 Analysing both the current workforce and hiring trends can reveal strategic priorities and areas of focus.
🔑 Companies with a balanced employee mix in key areas, like technology and sales, are often better positioned for market expansion and success.
When assessing a company's growth potential, examining the mix of its employees can provide valuable insights into whether the company is positioned to achieve its future objectives. Here's a guide on how to evaluate a company's employee mix and what to look for.
Key Aspects to Evaluate
1. Current Employee Mix
Understanding the current composition of a company's workforce is crucial. This information can be accessed through platforms like LinkedIn. Here's how you can analyze it:
the googlesheet template can be downloaded here.
Take, for example, Fortinet, a cybersecurity company.
Their employee mix is as follows as of today:
No. of roles on Linkedin | Roles |
6,537 | Information Technology & Engineering |
5,146 | Sales & Business Development |
756 | Customer Success and Support |
574 | Operations |
372 | Marketing |
359 | Quality Assurance |
270 | Program and Project Management |
263 | Consulting |
261 | Human Resources |
230 | Education |
224 | Military and Protective Services |
156 | Media and Communication |
259 | Legal |
Analyzing this data:
43% of the workforce is in Information Technology & Engineering, which is beneficial for a cybersecurity company as it requires a significant number of engineering talents ✅
34% is in Sales & Business Development, essential for capturing new market share in the fast-growing cybersecurity market ✅
2. Employee Hiring Mix
Next, look at the mix of employees the company is hiring. This can be found on sites like Craft.co:
Method: look for the Hiring Categories under Human Capital on the companies' pages on craft.co.
For Fortinet, the hiring mix is:
43% of roles are in Technology
40% of roles are in Sales & Business Development
This hiring strategy aligns well with their growth plans, indicating a strong focus on both technology development and market expansion.
Conclusion
By evaluating both the current employee mix and the hiring trends, you can gauge whether a company is on the right path to achieve its growth objectives. Companies like Fortinet, with a balanced focus on technology and sales, exemplify how a well-structured employee mix supports business growth and market expansion.
This approach not only helps in understanding a company's current capabilities but also provides a foresight into its future potential based on strategic hiring practices. Make this analysis a part of your investment strategy to identify companies with robust growth potential.
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