4.1 Workforce Planning & Headcount Approval

A company does not grow by simply adding headcount; it grows by increasing Talent Density.

Every new hire increases the organization's mass. If that hire is an "A-Player" (top 10% talent), they add propulsion. If they are a "B-Player" (average), they add drag. In a high-precision environment like Dannie.cc, a B-Player is not a neutral asset; they are a liability. They require A-Players to double-check their work, fix their errors, and manage their morale.

The Mandate: We prefer to leave a seat empty and endure short-term pain rather than fill it with mediocrity. We do not hire to "fill seats." We hire to solve specific, quantified engineering or business problems.

The "No B-Players" Philosophy

Workforce planning is the defense mechanism against "The Bozo Explosion" (the tendency of B-Players to hire C-Players).

A-Players want to work with other A-Players. They thrive on competence and speed.
B-Players feel threatened by A-Players and hire C-Players to feel superior.
Consequence: Once the density of B-Players exceeds 30%, the culture of excellence collapses.

Therefore:

Never hire to "take the load off" if the candidate cannot perform at the highest standard.
Never "settle" because the search is taking too long.
If in doubt, the answer is No.

Justification Logic: When to Open a Role

"I am overworked" is not a justification. "The SMT line is at 95% utilization and blocking revenue" is a justification. You must prove the need using one of three signals.

Signal A: The Capacity Wall (Data-Driven)

Criteria: The team is consistently operating above 85% utilization for > 4 weeks, causing measurable quality dips or delay.
Proof: Time logs, ticket volume, or machine uptime data.
Logic: "If we do not hire, we will miss deliveries for Client X."

Signal B: The ROI Leap (Financial)

Criteria: The hire will generate at least 3x their Fully Loaded Cost in revenue or savings within 12 months.
Proof: "Hiring a Procurement Specialist ($60k) will save $200k in component sourcing costs."

Signal C: The Capability Gap (Strategic)

Criteria: We require a specific skill set that does not currently exist in the company to execute a funded strategic objective.
Proof: "We are launching an RF product line. We have zero RF Engineers. We cannot execute the strategy without this node."

The Approval Levels

Headcount is OpEx (Operating Expense). It requires strict financial governance.

Case 1: Budgeted Roles (Pre-Approved in Annual Plan)

Approver: Department Head + HR Director.
Check: Verify the business need still exists. (Budgets are estimates; reality changes).

Case 2: Unbudgeted / Out-of-Cycle Roles

Approver: CEO + CFO.
Check: Requires the "Headcount Justification Packet" (see below). The bar for approval is significantly higher. You must explain where the budget will come from (e.g., cutting costs elsewhere).

Case 3: Backfills (Replacements)

Approver: Department Head.
Restriction: Do not auto-backfill. When a person leaves, ask: "Can this role be absorbed by software, automation, or process improvement?" A resignation is an opportunity to increase efficiency.

The Headcount Justification Packet

To request a new role, the Hiring Manager must submit the following artifact to the approver.

HEADCOUNT REQUEST: [Role Title]

1. The Trigger:

Why now? Why not 3 months ago? Why not 3 months from now?

2. The ROI Calculation:

Cost: $[Salary + 30% Overhead]
Return: $[Revenue / Savings / Risk Avoidance]
Ratio: [Return / Cost]

3. The "Pain" Analysis (Risk of NOT Hiring):

Specific negative consequence: "If we do not hire, we cannot accept orders for the Q3 batch."

4. The "Zero Compromise" Filter:

What does an A-Player look like in this role? (Define the 10x output).
What is the Screening Task? (We do not hire based on CVs; we hire based on work samples).

5. Alternatives Exhausted:

Have you tried: Automation? Outsourcing? Redistributing work?

Pro-Tip: If you cannot define the "Screening Task" (the practical test for the candidate), you do not understand the role well enough to hire for it.

Preventing "Random Hiring"

The following behaviors are strictly prohibited:

"Budget Burn" Hiring: Hiring someone in December just because "we have budget left." This is theft of company profit.
Title Inflation: Creating a "Senior Manager" role for a "Junior" scope to attract candidates.
Panic Hiring: Lowering standards to fill a seat during a crisis. (See: Contractors for short-term crises).

Final Checklist

Control Point	Requirement
Talent Standard	Zero Compromise. Better empty than mediocre.
Justification	Must be based on Data (Capacity) or Money (ROI).
Utilization Threshold	Existing team must be at > 85% load.
Unbudgeted Roles	Require CEO Approval and full Justification Packet.
Backfills	Not automatic. Must re-evaluate role necessity.
Screening	Role request must include a defined Practical Test.
Metric	New hire must aim for 3x ROI on their cost.