It’s an age-old frustration within the recruitment sector and one that can cause unnecessary tension between the candidates, clients and the agency. If you’re looking to use labour hire staff you might be concerned about what costs you will have on top of the fee, and if you are labour hire staff you might question the gap between your wage and the price the agency is charging the organisation they’ve placed you in.
To help clarify, this blog will run through what is covered in the temp’s wage when using Edutemps on-hire agreement.
Every employer is required to hold certain insurances for their staff. These include public liability insurance and workers compensation insurance. When using staff placed by Edutemps the insurances required for employees are covered by us, allowing an organisation to utilise a temp without having to worry about the time and cost of organising these insurances.
2. State taxes – payroll tax and Labour hire licence fees.
A candidate placed by Edutemps is classed as an employee of the agency; thus, the wage to the worker will attract payroll tax. Payroll tax varies from state to state but generally sits around 5%.
Most states have also introduced a labour-hire licence fee. This fee again varies from state to state but is as much as $4,000 annually in Victoria.
3. Agency Costs
The agency will then need to add a margin to cover the costs of running the business. The costs for placement will also include advertising costs, software licencing fees and the recruiter wages involved in the search.
These costs can certainly add up, especially if the role to be filled is in high demand. Multiple adverts may need to be placed across the numerous job boards. The recruiter may need to spend days, sometimes weeks searching, headhunting, screening and interviewing many candidates before the ideal candidate is found.
Edutemps over the past 10 years has built a database of over 16,000 Education specific candidates that allow us to source required staff in a timely manner.
Hopefully, this provides a little bit of a market insight and helps you understand the details behind the agency fee charged and why being and using labour hire staff is worth your while.
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