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Level 9, 500 Collins St, Melbourne VIC 3000

Tel: (03) 9663 0555




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Why we need to help SMEs see value in recruitment

There are many small- to medium-sized businesses, that take on the task of recruiting in-house because they believe they are too small to engage a professional recruitment agency and that they will save money by doing it themselves.


At the end of June 2017, there were 2,238,299 actively trading businesses in Australia with the vast majority (98 per cent) of them recording an annual turnover of less than $2 million, according to the Australian Bureau of Statistics.


Small budgets mean many have to find cost-savings at every possible turn. And for many small to medium businesses, an obvious place to start is by keeping recruiting in-house.

However, to call this a false economy in many cases would be a gross understatement.

Recruitment fees based on a percentage of gross remuneration can range anywhere from $5,000 to $15,000 and in some cases, can actually exceed this.


A chunk of revenue like that from a SME can be a body-blow, particularly if cash flow is scarce and cumbersome. It also seems completely counter-intuitive for many small- and medium-sized businesses to borrow money to fund recruiting; unless they understand its true value.