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Originally Posted by mpahlca
John, I am also very "pro" the office enviornment and how it can be a a benefit to a companies growth. I do say though that remote staff can work if its done with a manager who is comfortable managing people remotely. I think the days of remote work without video/skype conferencing are gone but remote staff who are plugged into the office and visibly working with others is doable. (In your case for developers its VERY hard to have them remote I completely understand and would do the same.)
For a SaaS company like yours I would go and look at public companies and then see what other companies that are larger than you are doing in terms of staffing percent. It would give you an idea of where you should be in relation to the industry. (I wouldn't do startups as they are really not in it to make money.)
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It's doable, but the vast majority of the time you'll get much lower production out of the remote employee. I know people will argue the contrary. They're more than welcome to burn all the money they wish
As far staff costs as a % of revenue; I don't believe you should ever try to mimic other companies or industry averages. Each company is going to have unique circumstances. Some may do quite well at half the industry average, some may need double. You need to look at many other things and figure out what is right for you, not try to mimic large companies.
TMM is also not SaaS. Our mainstream end of things is tho.