avoiBringing on a VP of Marketing is a critical hire. For startups and scaling tech companies, this role is often the engine that drives your brand, generates meaningful pipeline, and supports your company for rapid growth. But what happens when you make the wrong hire? Spoiler alert: It’s not good. Everything immediately thinks about their salary. But there a plenty of other hidden costs of making the wrong leadership hire.
Let’s break it down…
Direct Costs:
Salary, bonuses, stock or equity, 401k, and benefits—it all adds up. And when the hire doesn’t work out, you’re essentially lighting those dollars on fire. According to Glassdoor, the average salary for a Vice President of Marketing is $227,925 (and a lot more in a lot of cases). And this doesn’t include bonus or the cost of payroll and benefits. Add recruitment costs, onboarding, and any needed relocation, and the financial burden of a mis-hire is real.
Hidden Costs
Now, the below the surface stuff:
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- Lost Revenue: A mis-hire can lead to missed sales targets, wasted ad spend, and demand gen campaigns that miss the mark
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- Team Disruption: The wrong VP can demoralize your existing marketing team, creating a ripple effect on performance and lead to increased turnover. According to LinkedIn, in 2022 Tech and Media had an average turnover rate of 12.9. Throw in the wrong leader and this number can be much higher for your team.
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- Lost Time: It’s not just money; it’s time. For a lot of people that are involved. The months spent recruiting, interviewing, onboarding, training, and realizing the hire isn’t a fit are months you can’t get back.
The Bottom Line
The hidden costs of making the wrong hire add up. And it’s expensive. The cost of getting it right the first time is always less than the cost of fixing a mistake. With the right process, expertise and partner (had to throw this in there) you can help to avoid the costs of making the wrong hire, properly vet for the right long term fit and set your company up for success.
Ready to make your next leadership hire? Contact us today to learn how we can help you continue to secure a winning leadership team that drives growth.
About WithAgility
We are THE Recruiters for B2B Marketing & Product teams. WithAgility provides executive search, fractional recruiting and talent consulting to the fastest growing technology companies in the world. For help hiring your next leader or scaling your team, contact us today. We look forward to working with yo