In a survey of over 1500 HR professionals from Australia and New Zealand, ELMO Software, in partnership with the Australian HR Institute, found that the cost to hire an employee more than doubled in 2021, rising from $10,500 in 2020 to $23,860 per worker.
The cost of recruiting someone in Australia can vary significantly depending on factors such as the industry, position level, recruitment method, and location. However, I can provide you with a general overview of the typical costs associated with recruitment.
- Advertising Costs: If you advertise the job opening, costs can vary depending on your platform. Popular options include job boards, social media advertising, and industry-specific publications. The cost can range from a few hundred dollars to several thousand dollars, depending on the reach and prominence of the platform.
- Agency Fees: Many companies work with recruitment agencies to find suitable candidates. Agencies typically charge a fee based on a percentage of the candidate’s annual salary. The industry standard can range from 10% to 30% of the candidate’s first-year salary, but it can vary based on factors such as the role’s seniority and complexity.
- In-House Recruitment Costs: If your organization has an internal recruitment team, the costs associated with recruitment may include recruiters’ salaries, job fair participation fees, recruitment software or tools, background checks, and other administrative expenses.
- Pre-Employment Checks: Verifying a candidate’s background, qualifications, and references can involve additional costs. These may include criminal record checks, reference checks, qualification verifications, and psychometric assessments. The fees for these services can vary depending on the service provider.
- Onboarding and Training: Once a candidate is hired, there may be costs associated with their onboarding and training. This can include orientation programs, training materials, software licenses, and the time and resources existing staff spend to train the new employee.
According to HRD mag, “The cost of hiring includes much more than the salary and statutory costs,” Calder said. “Consider recruitment costs, on average $23,800, training at approximately 1.5% of salary, equipment, office space and onboarding, and you are close to the actual hiring price.”
We have a flat pricing structure that keeps your recruitment process affordable.