Human Resources - Skills and Costs

Hiring the right staff is critical for SMEs. The costs of human resources are very high. Your staff are the contact point between your business and the customer; they have to be competent, friendly and responsive to customer needs - see People strategy.

When starting a business, the owner must consider: 

• the types of employees are required for various roles, 

• the skill level for each role, 

• the payment of wages / salaries, 

• the nature of the contract for employment (full-time, part-time, casual), 

• the training requirements for recruits; 

• how to recruit staff.

The costs for hiring a full-time staff member is much higher than the base salary. 

There are 'on-costs' that also must be factored into your HR budget including: 

• superannuation (extra 11.5%), 

• annual leave (2 weeks), 

• public holidays (10 days per year), 

• sick leave (10 days per year), 

• worker’s compensation insurance, 

• payroll tax (for payrolls above $660k, and 

• recruitment costs.