The true cost of a new employeeNews Article: August 15, 2019 by Oaktree Accounting Business improvement
Bringing on another pair of hands?
It can be a big decision to commit to having a new member on the team but the right person will bring in the skills you need to grow the business and give you more time to achieve your goals, even if that is to spend more time with your family!
Before you advertise the role, spend some time to understand what skills you need in your business to move forward or to strengthen your position in the market. You may decide that the skill gap could be met by training existing staff who have the capacity or would be open to a change in their job description.
If the role is new, decide whether you need a full-time or part-time employee and what sort of experience or qualifications the ideal candidate would have. If they need training when they start, consider who will run this and how that will impact timings.
Create a job description. This will help you when it’s time to assess candidates. Try to avoid too many acronyms and internal jargon that won’t make sense to people outside your company.
Finally, you’ll want to understand the true cost of adding another staff member. Start with average industry salary rates and work out the fixed and discretionary costs involved, including Fringe Benefits Tax, industry insurance and superannuation costs. Include your one-off recruitment costs and overheads, as well as the cost of training and any benefits you offer, such as a carpark.
The recruitment process provides you with an opportunity to diversify your workplace. And if you hire people facing barriers to employment, you may be eligible for a number of financial incentives available for businesses.
Employing someone new to help take your business forward is an exciting step. We’ll help make sure that your finances and paperwork is in order before you hire. Book an appointment with us.