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The Hidden Burn Multiple of Hiring Inefficiency

  • Salah Ahmed
  • May 19
  • 3 min read
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Founders obsess over CAC and LTV.

They watch burn multiple like hawks.

They build dashboards to model every dollar of runway.


But most miss the silent metric that’s eating growth from the inside:

CHC — Cost of Hiring Cycles.


What Is CHC?


CHC is the hidden tax of slow, inefficient hiring.

It’s the lost ARR, wasted recruiter hours, duplicated CVs, and agency fees that stack every time you reset a hiring cycle.


Think of it like churn — only it’s happening in your hiring engine, not your customer base.


Why CHC Kills Runway


Every time a role sits open, CHC ticks upward:


  • Delayed revenue: A £600k AE quota slipping 3 weeks = £34.5k ARR lost.

  • Churn exposure: A £2m renewal book unmanaged for 6 weeks = £230k at risk.

  • Duplicated effort: Agencies send the same CVs your internal team already sourced — wasting time + fees.

  • Reset cycles: When an agency hire churns in 6 months, you pay the CHC all over again.


Multiply that across multiple GTM roles and quarters, and CHC quietly becomes one of your biggest burn drivers.


The Default Models Inflate CHC


  • Agencies:

    • Each cycle costs £20–30k.

    • Every delay adds weeks of lost revenue.

    • High churn risk = CHC compounding.


  • RPO / Embedded Recruiters:

    • Fixed retainers, limited bandwidth.

    • When priorities shift, cycles stall.

    • CHC grows quietly as contracts burn runway.


  • Internal Only:

    • Invaluable, but bandwidth + tool limitations mean slow pipelines.

    • Every delay = incremental CHC cost.


These models weren’t designed to reduce CHC.They were designed to bill you per cycle.


The Contrarian Truth: CHC Should Compound Down


Founders accept CAC drops as brand compounds.They expect gross margin to improve with scale.


But when it comes to hiring? Most accept CHC compounding up.


It doesn’t have to.With infrastructure, CHC falls as you grow.


How TalentLayerOMX™ Cuts CHC


TalentLayerOMX™ flips the curve:


  • Rolling shortlists: Candidates delivered in 2–5 days, cutting weeks of delay (lost ARR avoided).

  • Signal-based sourcing: Always-on pipelines tied to market triggers.

  • Switchable job slots: Priorities shift? Reallocate instantly, no reset cycles.

  • Live dashboards: Full visibility into funnel conversion = no wasted recruiter hours.

  • Flat monthly model: No per-hire invoices stacking on CHC.


Result: cost-per-hire drops below £1,500 at scale.CHC compounds down, not up.


Proof: Cutting CHC in Practice


Case Study — SaaS Series A Expansion

  • Agency route: 12 weeks, 2 hires, £28k fees.

  • CHC impact: £60k+ ARR lost + wasted agency fees.

  • OMX: 6 hires in 8 weeks, cost-per-hire <£1,200.


Case Study — Fintech Scale-Up

  • HR lead juggling multiple agencies, pipelines duplicating.

  • CHC impact: recruiter time wasted + churn risk rising.

  • OMX: consolidated into one infrastructure. 6 hires in 9 weeks. Total spend under £9k.


Case Study — Health-tech Post-Acquisition

  • Internal recruiters tied up in duplicate CVs across merged systems.

  • CHC impact: hundreds of wasted recruiter hours + extended vacancies.

  • OMX: zero duplicates, rolling shortlists. Internal recruiters refocused on experience.


💡 Lesson: OMX doesn’t just reduce cost-per-hire. It slashes the hidden burn multiple of CHC.


The ROI of Cutting CHC

Model

CHC Profile

Time to Shortlist

Cost Curve

Burn Impact

Agency

High (reset each role)

2–4 weeks

£20–30k / hire

Burn multiple ↑

RPO / Embedded

Medium (retainer waste)

2–3 weeks

Flat but high

Burn multiple stable ↑

Internal Only

Medium (bandwidth-limited)

2–6 weeks

Rising with volume

Burn multiple ↑

TalentLayerOMX™

Low (cycles compound)

2–5 days

£750–1,500 / hire

Burn multiple ↓


Future Pacing: What This Means for Founders


Next board meeting, your investors will ask the same question:“How are you controlling burn multiple while scaling?”


Most founders will talk about CAC, LTV, and gross margin.The smart ones will add: “We cut our CHC by 85% with infrastructure.”


That’s not just operational leverage.That’s strategic confidence.


Closing Call


Burn multiple isn’t just about CAC and LTV.

It’s about CHC — the hidden tax of inefficient hiring.


📅 Book your 15-minute strategy call today — and see how OMX slashes CHC and extends your runway.


📖 Not ready? Download our case study pack and see how founders cut hiring burn by 85%.

 
 
 

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