What does it cost to hire a new executive?

It costs organisations A$18,982 on average to hire one employee, and an average of A$34,440 to hire a new executive or A$23,059 for senior-level managers, according to research by ASX listed cloud-based HR and payroll solutions provider, ELMO Software.

The survey of more than 1,500 HR professionals across Australia and New Zealand, conducted in partnership with the Australian Human Resources Institute (AHRI), found an organisation’s average cost of hiring a new executive is A$34,440, compared to A$23,059 for senior-level managers, A$17,841 for mid-level and A$9,772 for entry-level positions.

The company says in a media release that Australian companies typically fill vacant roles within 39.2 days while recruitment is over one week slower in New Zealand, with roles filled within an average of 47.2 days. 

High employee churn remains a central challenge for one in six (16 percent) Australian and one in five (20 percent) New Zealand HR professionals — more than half (52 percent) of whom are working to grow their organisation within the next year.

Looking ahead, Australian and NZ professionals identified leadership development (37 percent), culture change (34 percent), upgrading technology (30 percent) and change management (30 percent) as key organisational challenges.

When it comes to recruitment, more than two-thirds (67 percent) of HR professionals in New Zealand and almost half (46 percent) in Australia believe there is a skills shortage within their industry. The competition for talent in New Zealand is ripe, challenging 64 percent of respondents, compared to 50 percent in Australia.

The ELMO Software report also found that 17 percent is the average employee turnover rate across Australia and New Zealand in the past 12 months. The greatest rates of turnover are in cyclical industries, such as accommodation and food services (30 percent) and retail trade (25 percent), while mining, public administration and safety, and electricity gas, water and waste services experienced only 11 percent.   

 

See https://elmosoftware.com.au

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