Evaluating a Company's Near to Medium-Term Growth Potential through Employee Mix.

Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.

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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.