The true cost of hiring in house and the benefits of a recruitment agency

Anyone can write a job ad. Anyone can recruit a new employee. But not everyone has the experience, or resources to do it well, quickly and cost effectively.

Studies show the actual cost to replace an employee can be as high as 1.5 times their annual salary, depending on a variety of factors.  When the average Australian salary sits at $98,000 AUD, a replacement can be up to $147,000 AUD plus! Similar story for our New Zealanders, where the average salary sits at $97,300 NZD, that’s $145,950 NZD plus!

It’s easy to see how quickly it can add up!

But why is it so expensive? Let’s breakdown the costs you need to think about when recruiting.

The True Cost Of Recruiting A New Employee

But if this hasn’t sold you, think about the cost you would incur if you hired the wrong person for the role. You would be repeating the process all over again and can cost up to 2.5 times the new hires annual salary coming to about $245,000 AUD/NZD (based on the average salaries). Now at first that seems like a big number, however when you start to break the recruitment and onboarding process down, it does seem like a reasonable figure.

Let’s take a look:

Recruitment and Onboarding Cost Breakdown

It’s a lot right?

Now imagine that you had to go through this entire process again because it turns out that you’ve hired the wrong fit for the position. Not to mention the ripple effect this would have on the team by way of workload and morale, you may find yourself hiring multiple positions.

When everything is broken down you might realise how expensive and time-consuming hiring really is. So, you really want to ensure you are getting it right the first time!

That’s where a recruitment agency like us comes in. If we haven’t sold you yet, here’s a few more benefits of using Frontline Recruitment Group specifically to fill your open positions.

Benefits of Using Frontline Recruitment Group to Recruit for Your Open Positions

If you’re ready to save time, resources and hire the right person, get in touch with us today!

You’ll start with a no-obligation confidential discussion with a specialist recruiter regarding your staffing needs and current challenges. Then we will let you know how we can assist you and your business.

Reach out to our friendly team or you can read some of our success stories before you make the decision.

Happy hiring!