The Real Cost of Recruiting your Own Staff

Have you ever really considered the real cost of recruiting staff?


When employing someone on $80,000 per annum which equates to a $40.47 per hour rate, but is this the real hourly rate cost to an employer.

What we normally fail to take into account are the real cost implications of hiring an employee;

Obviously there is a base salary as outlined above, but the associated costs of that employee had not been worked out the. Consider an employee on a base salary of $80,000 example, did you know that this employee will end up costing you up to 1.4 times more than $80,000?

There are seven costs to consider:

1. Firstly Superannuation on an $80,000 per annum position is 9.5% which equals $7,600

2. Next is annual leave. Although this is built into their wage, you are effectively paying $80,000 for 48 weeks of work in the year, which means the correct annualised wage for the employee is roughly another $6,154

3. In addition you have Sick/Personal which is normally 10 days per year at a cost of $3,077.

4. Public Holidays 12 per year would cost $3,692

5. Workers Compensation at an average of 5% which equates to $4,000 per annum.

6. Payroll Tax of 4.75% per year at a cost of $3,800.

7. Another cost that is normally not included is the actual cost of recruitment and this is around $5,000 per recruit. The costs are apportioned to the person doing the recruit, advertising, training, down time, Employment Medicals and any testing that may be required.

Considering all of the above costs, your new staff member you have hired on $80,000 per annum will actually cost you $111,077 and the new hourly rate is $56.21 apposed to the original hourly rate of $40.47.

How Entire Recruitment Can Help

  • Take away some of your administrative burdens
  • Allow you to upsize or downsize on demand
  • Take away your induction, safety, training, payroll and superannuation costs
  • Contract or temp when required
  • Save on advertising for employees and browsing many applications
  • Find specialists fast from a database of over 130000
  • Not have to worry about sick or holiday pay

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