The cost of a new employee

BriNew, Employeenging 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 get more balance back in your life and spend some time with family.

Before advertising the role, spend some time understanding what skills you need in your business to support your business objectives. You may decide that the skill gap can be met by training existing staff who have capacity or would be open to stepping up into a bigger role.

If the role is new, decide whether you need a full-time or part-time employee and the sort of experience or qualifications the ideal candidate would need to have. If they need training when they start, consider who will do this and how this will impact your business.

Create a job description. This will help you when it’s time to assess candidates. Try to avoid too the wordy 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 ACC levies and Kiwisaver costs. In addition, you may have one off recruitment costs and overheads, and may need to factor in the cost of training and any benefits you offer, such as a vehicle.

Employing someone new to help move your business forward is an exciting step. We’ll help make sure that your finances and paperwork is in order before you employ them.

For a ballpark figure on the cost of hiring a new employee, try the employee cost calculator created by Business.govt.nz. Click Here

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