There’s a common belief that investors care only about return on investment — and of course, that’s true to a large extent. It’s the nature of investment itself. But what’s often underestimated is that ROI depends on many factors — and one of the most critical ones is people.

I’m not going to focus much on the leadership team’s background here (track record, credibility, complementary skills like technical + commercial + operational experience). If you’ve already made it through your early funding rounds, investors have likely assessed that part.

Instead, this article is for founders who are scaling — those entering the stage where investors look deeper into how your people systems support sustainable growth.

One of the first things investors look at when assessing a growing company is how quickly and effectively it can fill critical roles. In other words: how scalable is your organisation? Can you actually build the team needed to deliver on your business plan?

You need to know:

• How many people you’ll need to hire
  
  

• Which roles are critical
  
  

• When they need to start to ensure milestones are met
  
  

That means having a clear hiring plan — with timelines from starting recruitment to onboarding the new hire. To make it work, you need a system that attracts and selects the right people — especially in competitive markets. Whether you use job boards, LinkedIn, or recruiters, what matters most is that your process is structured, efficient, and data-informed.

And yes, if you’ve ever tried to handle hundreds of applications manually — you already know why having an ATS (Applicant Tracking System) is a must.

Retention metrics are directly connected to your hiring plan. If your attrition rate is 10%, that means you’ll lose roughly one person per ten employees each year — so that needs to be factored into your hiring targets. But beyond numbers, retention tells investors how healthy your organisation really is.

Interestingly, 0% attrition isn’t necessarily a good sign (unless you’re a very small business). Lack of turnover — especially when you're not hiring new people — can signal stagnation: no fresh ideas, no new energy, and slower innovation over time.

On the other hand, high attrition rates tell another story — possible culture issues, burnout, or leadership misalignment. Investors know that if you can’t retain people, your growth is at risk.

Another key indicator of business maturity is how well you onboard new hires. When onboarding is structured and intentional, people become productive faster — reducing downtime and costs. Measure it by asking:

• How long does it take for a new hire to reach full productivity?
  
  

• What do their first 30/60/90-day surveys or feedback say?
  
  

Good onboarding is a sign of a company that values clarity, culture, and long-term growth.

Culture and engagement might sound “soft,” but investors pay attention. Engagement scores reveal risks like burnout, toxicity, and disengagement — all of which affect performance, retention, and ultimately ROI.

It’s simple: happy, engaged people stay longer and perform better.

When engagement drops, so does motivation — and that directly impacts your ability to meet business goals.

Beyond the main metrics, investors often look for:

• Emerging leaders being coached or mentored to grow with the company
  
  

• Scalability of people systems for cross-border or hybrid teams
  
  

• Diversity, equity & inclusion (DEI) focus
  
  

Risk management — especially around compliance or potential employment claims

When investors say they “believe in the team,” they don’t just mean the founders — they mean the entire people system behind the business.

If you want your company to scale confidently and attract the right investors, treat your people strategy as a growth engine, not a nice-to-have.

And if you’d like me to unpack more of these topics — like DEI, leadership pipelines, or international expansion — let me know in the comments, or book a quick chat. Always happy to share what works in scaling environments.