The Real Cost of a Direct Employee
When most businesses calculate the cost of hiring someone directly, they look at the base salary and perhaps superannuation. But the true cost of employment goes far beyond that. On average, businesses underestimate their total employment costs by 30 to 45 percent once you factor in the hidden expenses that come with managing a workforce in-house.
Consider the costs that rarely make it onto the spreadsheet: workers' compensation insurance premiums, payroll tax obligations, recruitment advertising, onboarding and induction time, HR administration, leave entitlements (annual, personal, long service), training and upskilling, PPE and equipment, and the administrative overhead of managing compliance documentation across multiple awards and enterprise agreements.
How Labour Hire Changes the Equation
With a labour hire model, these costs are consolidated into a single, transparent hourly rate. There are no surprises at the end of the financial year when insurance premiums spike due to a claim, or when you realise you have been underpaying an employee under a complex modern award. Harrison Barratt Group manages all employment obligations, compliance, payroll, superannuation, and insurance, so you can focus on delivering your projects on time and on budget.
Flexibility Is the Hidden Advantage
Beyond direct cost savings, labour hire provides something that is difficult to put a dollar figure on: workforce flexibility. In industries like construction, manufacturing, and logistics, project demands fluctuate week to week. Scaling your workforce up or down with permanent employees is slow, expensive, and fraught with legal risk. With labour hire, you match your workforce to your workload, every single week.
"We switched to HBG's labour hire model for our civil works division and reduced our total workforce costs by 22% in the first year, while actually increasing our on-site headcount during peak periods." — Operations Manager, Tier 2 Civil Contractor