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Cost of hiring staff calculator: What's the cost of hiring a new employee?

As fast-growing organisations grapple with an influx of job applications, you are probably asking yourself: What is the cost of reading resumes? How much does it cost to employ someone in Australia?

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Hiring a new employee costs on average around 50 hours of time for a small to medium enterprise, covering job ads, application review, shortlisting, interviews, reference checks and learning on the job. It’s a significant investment in both money and effort.

We’ve simplified things for you with our handy Cost of Hiring Employees Calculator. Just plug in the number of applications you’re aiming for, and let the calculator do the work for you.

Cost Of Hiring New Employees Calculator

Welcome to the world of hiring decisions, where choosing between in-house staffing and outsourcing can be a game-changer for any organisation. 

Our Cost of Hiring Staff Calculator is your go-to tool for demystifying the dollars and cents behind building your team. We’re here to break down the nitty-gritty of what it really costs to employ someone in Australia.

Our Cost of Hiring New Staff Calculator provides guidance on the time and cost associated with two main tasks:

  • assessing who you want to shortlist, and
  • speaking to your shortlist.

We estimate that it takes an average of 15 minutes per application, which includes tasks such as reading the cover letter, assessing the resume, updating your system, sending rejection emails to unsuccessful candidates, and sending a successful email to short-listed candidates. We know that every application represents someone’s hard work and aspirations, so we encourage you to take the time to review each one thoughtfully.

We understand that sorting through incoming job applications can be a tedious and time-consuming task. That’s why we’ve created a calculator to help estimate the amount of time required to read, qualify, and sort through these applications. You can add up to 800 resumes to see what the costs might be and then adjust it to your expectations.

We hope that this Cost of Hiring New Staff Calculator will help you streamline your hiring process while still maintaining empathy and fairness towards all applicants.

Cost of hiring a new employee

What Is Included in the Cost of Hiring a New Employee?

The cost of hiring a new employee includes expenses related to writing job advertisements, publishing them on job boards, shortlisting candidates, conducting interviews, and performing reference checks. It also includes potential setbacks such as hiring individuals who may not show up, who possess skills different from what was claimed, or require extensive training periods.

For example, if you advertise a position for a small to medium enterprise you can expect to receive upwards of 200 applicants. According to our Cost of Hiring Staff Calculator, by the time you factor in reading applications, shortlisting, screening phone calls, rejection letters, and interviews, it will cost $5125 based on a $75ph HR worker salary. This equates to 50 hours of time spent coordinating the administrative process.

The hiring process varies for each new recruit. Some positions may involve 50-60 hours of work before the new employee starts, depending on the number of applicants. Often we find, with particular roles that are suited to a wide range of people, you can get 800-1000 people applying for the role. See our screenshots of how many applications we have received when applying on behalf of clients. Some could exceed 1,350.

Do you have time to go through this process for even 50 applicants? What happens when you get hundreds? Will you thoroughly assess each one?

Local Workforce Hire completely understands how overwhelming and time-consuming the process of reading resumes can be for businesses. It’s crucial to find the right candidates for the job, but it can be a costly and exhausting process.

This is where outsourcing recruitment processes can be a game-changer. By partnering with us, you can free up valuable time to focus on core business functions, like growing your customer base.

Is There a Way to Reduce the Cost of Hiring a New Staff Member?

We know that smaller businesses and owner-operators may feel inclined to handle recruitment themselves, but it’s important to recognise that doing so may hinder your ability to scale.

With our recruitment service our team is here to help you every step of the way. 

Our fee is a flat rate of $5,000 plus GST and you won’t be charged any money unless you hire a candidate. We put you in a no-lose position and trust our skill set and experience to find an impressive candidate that suits your culture and has the necessary experience you need.

It is not uncommon for us to receive hundreds of resumes for a position. We do all the hard work in reading each application and shortlisting applicants. Then we conduct interviews and invite the best candidate to become part of our employment network that we offer as staff to our clients.

Our main goal is to help you achieve sustained success in your business. By outsourcing your recruitment to us, you can build a strategic partnership that enables you to grow a workforce that truly propels your organisation forward.

Outsource recruitment

From a strategic point of view, it is not efficient to believe that only you can hire people. 

By outsourcing recruitment, you can focus on what matters most and leave the hiring process to the experts who already have connections and who have the technology to do it quickly and well. 

Local Workforce Hire will handle the entire process, from qualifying and interviewing candidates to presenting you with three top candidates for you to meet and interview

Consider reframing the question from "should I outsource recruiting?" to "does recruiting hold me back from achieving my full potential?" By doing so, you may discover new possibilities for growth and success.

Let’s dive into a few key points to explore this further:

What Is the ‘Opportunity Cost’ of Administration around Recruitment

As the business owner or a member of senior management, your time is typically only invested when it is a valuable task that heavily relies on you and your expertise. You control the strategic direction of the business, ensuring that you are operating profitably and finding opportunities to grow.

Dedicating significant time to assessing resumes and handling the hiring process independently can have broader consequences for your business. Beyond the immediate time investment, there are potential repercussions that extend to missed opportunities and hindered growth. 

By choosing to handle administrative aspects of hiring on your own, you might inadvertently divert your focus from income generation and customer acquisition – essential activities for business expansion. The opportunity cost, in this case, goes beyond the immediate financial savings and encompasses the potential revenue and business development opportunities that may be overlooked. 

How to reduce the 'opportunity cost' of administration around recruitment

In reality, allocating substantial time to tasks that could be outsourced to experts may result in a less efficient use of resources and a slower trajectory for your company’s overall success.

Why have an in-house team and spend money on personnel expenses when you can use a free recruitment service that only charges when you hire someone?

Local Workforce Hire provides a cost-effective solution that eliminates the need to deal with hundreds of enquiries and phone calls, which can be time-consuming and unproductive.

Seek, on the other hand, charges upfront fees of approximately $330 for listing a resume, whereas we won’t charge you anything.

From a strategic point of view, it is not efficient to believe that only you can hire people. By outsourcing recruitment, you can focus on what matters most and leave the hiring process to the experts. Local Workforce Hire will handle the entire process, from qualifying and interviewing candidates to presenting you with three top candidates for you to meet and interview.

We charge a fee of $5,000 when you decide to hire, but there is no fee unless you hire someone.

Outsourcing recruitment to Local Workforce Hire will enable you to leverage specialised expertise and human resource capabilities at a low cost. By working together as strategic partners, you can achieve disciplined planning and execution that will enable you to scale and grow your business.

Keep the cost of hiring staff low while you focus on your business

Day-to-day disruptions can cause delays in the hiring process, leading to a loss of top candidates and increased operational costs. By partnering with Local Workforce Hire, you can ensure that your recruitment process is streamlined and that you have access to the best candidates.

Outsourcing recruitment to Local Workforce Hire will enable you to focus on growing your business while leaving the recruitment process to the experts. Let’s work together to build a strategic recruitment relationship that will help you achieve your business goals and be known for best practices.

Contact us at 1300 562 250.

Local Workforce Hire Editorial Team

"Hello there. We are absolutely thrilled to have you reading our blogs and articles! Our main aim is to provide you with super helpful and enjoyable content. We would love to hear your thoughts and ideas, so please don't hesitate to get in touch. We can't wait to hear from you and hope you have an amazing day!"
Warmest regards, Fran at Marketing Local Workforce Hire.

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