When considering hiring a new employee in New Zealand, it's important to factor in the various costs involved in the process aside from the obvious wage or salary. Here's a few things to consider:
1. Recruitment
Advertising the job position. For instance the cost to post to Seek or Trademe
The time it takes to screen and interview applicants, and reference checks. Time is money when you run a business, and this can take a lot of time.
Recruitment agency fees if you decide to use one
2. Training and Development
Onboarding costs. Your new recruit will need to be inducted to your workplace and the role, and may not be 100% productive until they are settled in
Training programs and development. It can be hard to find the perfect candidate, so you may need to invest in upskilling them early on.
3. Equipment and Workspace
The tools they need for their role. Whether it be computer/laptop, desk and chair, office supplies or a ute and new tools, this can be an expensive outlay.
4. Employee benefits
Whether you offer health insurance, fuel card, additional Kiwisaver payments, or something else, these costs can sneak under the radar.
Top Tip:
It pays to get it right as hiring an employee can be a significant investment. Where possible, we'd recommend not hiring someone who is 'ok' just to fill a gap, if you can wait for the right person to fit with your business.
Here's a handy tool to give you an estimate of the cost to hire in your industry: https://www.business.govt.nz/employeecostcalculator
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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