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Startup Founder to Startup Founder: Why I Believe Hiring Should Cost €500, Not 20% of an Employee’s Annual Salary?

6 min read

As founders, we obsess over product-market fit, runway, customer acquisition, churn, fundraising, and cash flow.

Yet there is one expense that quietly drains startups of thousands—sometimes hundreds of thousands—of euros every year.

Hiring.

Not because great people are expensive.

Because the process of finding them has become unnecessarily expensive, slow and uncertain.

Over the past few years, while building Nap OS, I’ve spoken with founders, startup teams, university leaders, recruiters, graduates and employers across Ireland. One conversation keeps repeating itself.

“We just need to find the right people.”

Finding talent isn’t the real problem.

Finding people you can trust is.

And today, that trust often comes with an astonishing price tag.

The 20% Hiring Tax

Imagine you’re building a SaaS startup.

You finally raise your first investment.

You need a software engineer.

Salary: €80,000.

You engage a recruitment agency.

The fee?

Approximately 20% of the first year’s salary.

That’s €16,000 to introduce one employee.

Need five hires?

You’ve potentially spent €80,000 before anyone has written a single line of code or spoken to a customer.

For early-stage startups, that’s not just expensive.

It’s capital that could have funded product development, marketing, customer success or another full-time employee.

Recruitment agencies provide an important service, particularly for executive and specialist hiring. They reduce search effort and often have strong networks. But for many startup roles, founders still invest significant time interviewing candidates, assessing technical skills and evaluating cultural fit.

The question is whether there is another model that complements traditional recruitment—especially for growing startups.

CVs Are Becoming Less Useful

The hiring process has changed dramatically.

Candidates now have access to AI tools capable of producing polished CVs, customised cover letters and professional online profiles within minutes.

Technical interviews can be supplemented by AI assistance.

Coding assignments can be completed with AI-generated suggestions.

Portfolios can be copied.

Certificates have become increasingly common.

From a founder’s perspective, almost every applicant appears qualified.

Yet once hired, performance varies enormously.

The challenge isn’t attracting applicants.

The challenge is identifying genuine capability before extending an offer.

Hiring Is One of the Biggest Risks for Startups

Established enterprises can sometimes absorb hiring mistakes.

Startups cannot.

One poor hire can delay a product launch.

Miss a funding milestone.

Increase customer churn.

Slow engineering velocity.

Damage team culture.

Consume months of management attention.

Every founder knows the hidden cost of recruiting isn’t simply the recruitment fee.

It’s everything that follows if the wrong decision is made.

That’s why founders increasingly ask themselves:

“How can I reduce hiring risk before making a full-time commitment?”

What If Recruitment Started with Real Work?

Imagine hiring worked differently.

Instead of beginning with CV screening…

It begins with work.

Rather than interviewing fifty candidates, you invite a group of promising individuals to contribute to genuine business projects.

Not hypothetical case studies.

Not generic aptitude tests.

Real challenges your company is already solving.

Perhaps it’s improving onboarding.

Researching competitors.

Designing marketing campaigns.

Building product features.

Conducting customer interviews.

Creating technical documentation.

Analysing data.

Candidates demonstrate how they think, communicate, collaborate and execute.

Instead of asking people to describe their abilities, you observe them applying those abilities.

By the time you make a hiring decision, you’ve already seen them work.

This Is the Philosophy Behind Nap OS Recruit

Nap OS Recruit wasn’t built to replace recruitment agencies.

It was built to reduce hiring uncertainty.

Our belief is simple.

People should earn opportunities through demonstrated capability rather than polished presentations alone.

Instead of paying recruitment fees based solely on introductions, employers can create structured project-based hiring pathways.

Candidates complete meaningful work.

Employers observe performance.

Hiring decisions become evidence-based.

The relationship begins before the employment contract.

Why €500 Matters

Let’s compare two approaches.

Traditional recruitment

  • Candidate introduced through an agency
  • Fee often around 15–25% of annual salary
  • Limited evidence beyond interviews, references and assessments
  • Significant hiring risk remains

For an €80,000 role, that’s often €12,000–€20,000.

Now imagine another option.

A startup creates a structured project through Nap OS Recruit.

Candidates demonstrate their capabilities.

The employer reviews real outputs, communication, consistency and collaboration.

Once confident, the company hires.

Platform cost:

Around €500 per successful hire.

That difference is significant.

For one hire, the savings could exceed €15,000.

Across ten hires, it could exceed €150,000.

Those savings remain inside the business, where they can fund product development, customer acquisition and future growth.

Better for Candidates Too

Candidates also benefit.

Many talented graduates never receive interviews because they lack commercial experience.

Career changers struggle because employers prioritise industry experience.

International professionals often hear they need “Irish experience.”

The paradox is obvious.

People need jobs to gain experience.

Yet they need experience to get jobs.

Project-based hiring changes that dynamic.

Instead of asking candidates to prove themselves during a forty-minute interview, employers observe weeks of real contribution.

Performance becomes visible.

Building Trust Instead of Marketing

Trust has become one of the most valuable currencies in recruitment.

Founders don’t need more applications.

They need better signals.

Nap OS captures those signals through:

  • Verified project participation
  • Employer feedback
  • Deliverables
  • Milestones
  • Portfolio evidence
  • Continuous development

Rather than relying solely on interviews, employers gain access to a richer picture of each candidate’s capabilities.

Faster Hiring, Lower Churn

One of the biggest costs in recruitment isn’t filling a role.

It’s replacing someone who leaves after six months.

Employee churn is expensive.

Projects lose momentum.

Knowledge disappears.

Teams reset.

Customers feel the disruption.

When employers hire people they’ve already worked alongside through projects, both sides have clearer expectations.

Candidates understand the organisation.

Employers understand the candidate.

That mutual understanding can contribute to stronger hiring decisions and potentially improve retention, although outcomes will always depend on the organisation and the role.

A Better Use of Startup Capital

Every euro matters during the early stages of a company.

Founders constantly ask:

Should we hire another engineer?

Invest in marketing?

Expand sales?

Improve infrastructure?

Reducing recruitment costs creates flexibility.

Instead of spending tens of thousands on agency fees, startups can redirect that capital toward activities that create long-term value.

Hiring becomes an investment in capability—not a large transactional expense.

This Isn’t About Replacing Recruiters

Recruitment agencies have an important role.

Executive search.

Confidential hiring.

International recruitment.

Specialist industries.

These services create real value.

Nap OS Recruit addresses a different challenge.

Helping startups and growing businesses identify capable people through demonstrated work while reducing the cost and uncertainty associated with early-stage hiring.

The two approaches can coexist.

Looking Ahead

Artificial intelligence will continue transforming recruitment.

CVs will become more polished.

Applications will become easier to generate.

Traditional hiring signals will become harder to trust.

The organisations that succeed won’t necessarily be those reviewing the most applications.

They’ll be the ones creating the clearest evidence of capability.

That’s the future we believe in.

A future where founders hire with greater confidence.

Where candidates are recognised for what they can actually do.

Where practical work matters more than polished claims.

Where trust is earned through execution.

The Vision

As founders, we don’t build companies simply to solve today’s problems.

We build infrastructure for tomorrow.

At Nap OS, our vision is straightforward:

Reduce the friction between talent and opportunity.

Enable startups to discover capable people through real work.

Help candidates build evidence before they need it.

And make hiring faster, more transparent and dramatically more affordable.

If a startup can confidently hire the right person for €500 instead of paying 20% of an annual salary, while gaining better evidence of capability along the way, that’s not just a saving.

It’s a fundamentally different way of thinking about recruitment.

The future of hiring won’t belong to the companies with the biggest recruitment budgets.

It will belong to the companies that can identify genuine capability quickly, fairly and with confidence.

That’s the future Nap OS Recruit is working to build—one verified project, one successful hire and one startup at a time.

Nap OS

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