The hidden cost of rushing recruitment

by | May 3, 2022

I was out at a factory near Wodonga last week, helping an employer work through a complicated WorkCover claim that was costing him a fortune in time, energy and an increase in insurance premiums.

I asked him if he had made the requirements of the job clear in the job advert.

He said no, he didn’t have time to get into detail because he’d been so busy and under the pump getting staff.

I asked him if he had put the new employees through a medical assessment before they started.

He said no, it was too expensive and would delay getting people on deck in the business.

I asked him if he got the employee to sign a position description.

He said no, he just got him started ASAP, he doesn’t have PDs as he didn’t have time for more admin.

Now you might be thinking, fair enough. Employing people is time consuming and expensive. With the shortage of workers, we’re facing right now, it’s harder than ever to get people.

I hear you; I really do. But I have another perspective for you.

How much will it cost your business to replace even one staff member every few months? In advertising, your time, administration and lost productivity?

It might surprise you to know that the cost of replacing an employee is 4x their wage.

So, if they earn $60,000 a year, it will cost your business on average $240,000 to replace them. It might not all be cash you see – but it is costing your business this amount in new hire time, training which could take 12 months or longer, productivity as well as wages and on costs and don’t forget about the culture impact as it could take a dive.

How much will it increase your WorkCover insurance premium if you get a significant claim?

It can increase up to 30%. If you’re paying $50,000 for WorkCover, a serious claim might mean you’re paying $65,000 next year. $84,500 the year after and $109,850 the following year

A medical assessment costs on average $150. If you need to get something more extensive, it might be up to $1,500at most and that would include scans and/or pathology.

What can you do to mitigate this risk?

An HR Framework with a consultant like us may cost one person’s wage, depending on the size of the business, the gaps you have and how high risk your business is (we do a Business Assessment to identify and tailor what you need; we don’t do unnecessary work, so we don’t give ballpark figures).

If you don’t get onboarding and other HR and OHS documentation right at the start, it can cost your business significantly, upwards of $200,000 in the case scenario.

If you get a solid HR Framework in place, it’s an investment you will not regret. around a quarter of not getting it right!

Which bill would you prefer?

If you want to learn more about what an HR Framework could look like for your business, get in touch for a confidential chat.

Maureen Kyne



Maureen Kyne

Maureen is a leading authority in workplace bullying, sexual harassment and discrimination. With qualifications and a career spanning nursing, manufacturing, construction, transport, HR, IR & WHS she brings wide-ranging experiences.

Having lived and worked in both regional towns and capital cities, Maureen understands the economic and workplace pressures faced across diverse environments from harvesting sheds in farming communities to metropolitan corporate boardrooms.

Maureen presents with a warm demeanour and easy conversational style yet is fearless in raising the issues most prefer to avoid. Whether wearing a prevention, detection or correction bullying hat, Maureen knows how to peel back the layers and get to the root cause of the toughest and most complex situations.

Respect drives change and as a confidante and training facilitator Maureen will do what it takes to save lives and build better futures.


HR Blueprint

Bringing an intuitive, respectful & rational lens to your people challenges

  • Are you an owner or senior leader in your business?
  • Do you struggle with ensuring you’re up to date with your HR obligations and processes?
  • Do you worry about costly WorkCover or IR claims?
  • Do you want to improve the workplace culture for your team?

Managing people can be stressful – but it’s less stressful when you’re not managing it alone.

HR Blueprint is your trusted partner in HR. We understand your human capital is the most important asset of your business.

HR Blueprint was created by Justin Hocking and Maureen Kyne in 2020 as bushfires impacted our country and the Covid-19 pandemic took hold, changing Australia’s business landscape.

As your outsourced HR department, we listen attentively to your challenges; assess each issue individually; and develop efficient solutions.

We are committed to doing whatever it takes to work through your problems. We treat your business as if it were our own.