When a growing Australian business decides it is time to hire a people and culture manager, the conversation usually starts and ends with the salary figure on a job ad. Someone searches "people and culture manager salary Australia", finds a range, and uses that as the basis for a decision.
The problem is that the advertised salary is only part of the story. The true cost of bringing a people and culture manager on board in Australia is considerably higher once you account for superannuation, leave entitlements, recruitment costs, onboarding time, and the inevitable overhead of managing a new internal hire. For many businesses, that full cost lands somewhere between $100,000 and $150,000 per year, and that is before accounting for the risk that the hire does not work out.
This article breaks down what a people and culture manager actually costs in Australia in 2026, and what options are available to businesses that need the capability but are not ready for the full expense.
Salaries for people and culture managers in Australia vary by seniority, location, and industry, but the broad market range in 2026 looks like this.
A junior or coordinator-level HR professional with two to four years of experience typically earns between $65,000 and $85,000 per year. A mid-level people and culture manager with five to eight years of experience commands between $85,000 and $110,000. A senior people and culture manager or HR business partner with significant strategic experience can earn anywhere from $110,000 to $140,000 or more, particularly in Sydney and Melbourne.
For a mid-market Australian SME looking for genuine capability rather than a junior generalist, the realistic base salary is somewhere between $90,000 and $115,000.
On top of base salary, Australian employers are required to contribute superannuation at the current rate of 11.5%, rising to 12% from 1 July 2025. On a $100,000 base salary, that is an additional $11,500 to $12,000 per year. This is a mandatory cost that cannot be avoided and is frequently left out of back-of-envelope salary comparisons.
Full-time employees in Australia are entitled to four weeks of paid annual leave per year under the National Employment Standards. On a $100,000 salary, four weeks of leave represents approximately $7,690 in leave liability. This cost is accruing continuously throughout the year, and when an employee takes or is paid out their leave, it draws down real cash.
For businesses that allow leave to accumulate, this liability compounds over time. It also means that during any given four-week period, the business is paying for a resource that is not producing output.
Employees are also entitled to ten days of paid personal leave per year. Not all of this will be taken, but it is a real entitlement and a real cost. On a $100,000 salary, ten days of personal leave represents approximately $3,846 in potential liability.
Finding and hiring a people and culture manager is itself an expensive exercise. If you use a recruitment agency, expect to pay a placement fee of 15% to 20% of first-year base salary. On a $100,000 role, that is $15,000 to $20,000, paid upfront and non-refundable if the hire does not work out within the guarantee period.
If you recruit directly through LinkedIn or Seek, you avoid the agency fee but absorb the internal time cost: writing the job description, managing applications, conducting interviews, and running reference checks. For a business without a dedicated HR function, this process typically consumes 20 to 40 hours of senior leadership time.
A new people and culture manager does not deliver full value from day one. There is an onboarding period during which they are learning the business, building relationships, and getting across existing systems and processes. Depending on the complexity of your business, a realistic productivity ramp is two to four months.
During this period, you are paying a full salary for partial output. The cost of this ramp, conservatively estimated at two months of salary plus super, is approximately $18,000 to $22,000.
The risk of a bad hire is significant and often underestimated. Research consistently shows that the cost of a failed hire is between 50% and 200% of annual salary when you account for severance, re-recruitment, productivity loss, and the impact on team morale. For a $100,000 role, a failed hire could cost your business anywhere from $50,000 to $200,000 all up.
This risk is not hypothetical. People and culture is a specialised function, and finding someone who is the right technical fit and the right cultural fit for your specific business is genuinely difficult.
Putting this together, the true cost of hiring a people and culture manager in Australia looks something like this. Base salary of $100,000, plus superannuation of $11,500, plus annualised leave cost of approximately $7,690, plus recruitment of $15,000 to $20,000 (agency) or internal time equivalent, plus onboarding ramp of approximately $18,000 to $22,000 in the first year. That puts the genuine first-year cost of a people and culture manager hire at approximately $150,000 to $160,000, not including the risk of the hire not working out.
From year two onwards, the annual run rate settles to approximately $120,000 to $130,000 per year in total employment cost.
For businesses that need HR capability but are not ready to absorb $150,000 in year-one cost, the main alternatives are a fractional HR arrangement or a part-time hire.
A part-time hire reduces the base salary and leave costs proportionally but does not eliminate the fixed costs of recruitment, super, and onboarding. It also introduces availability constraints, as a part-time employee is simply not there for a significant portion of the working week.
A fractional HR arrangement, such as the embedded model offered by Scale Suite, provides full operational and strategic HR coverage at a monthly retainer of $3,750, or $45,000 per year. That includes a dedicated HR professional for day-to-day delivery and senior oversight for complex matters. There are no recruitment fees, no leave liabilities, no super obligations, and no onboarding ramp. The service is live within days, not months.
For businesses in the 10 to 50 employee range, fractional HR typically delivers equivalent or better capability at 30% to 40% of the cost of an internal hire.
Scale Suite provides embedded fractional HR services to Australian SMEs. If you are weighing up whether to hire internally or explore a fractional model, we are happy to walk through the numbers with you and give you an honest view of what makes sense for your business.
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What is the average salary of a people and culture manager in Australia in 2026?
A mid-level people and culture manager in Australia typically earns between $85,000 and $110,000 per year in base salary. Senior professionals in Sydney or Melbourne can earn $110,000 to $140,000 or more.
What is the true cost of hiring a people and culture manager in Australia?
When you include superannuation, leave entitlements, recruitment fees, and onboarding ramp time, the true first-year cost of hiring a people and culture manager is typically between $150,000 and $160,000 for a mid-level role.
Do I have to pay superannuation on top of a HR manager's salary?
Yes. Australian employers must pay superannuation at 11.5% of ordinary time earnings on top of base salary. From 1 July 2025 this rate increases to 12%.
What does it cost to recruit a people and culture manager in Australia?
Using a recruitment agency typically costs 15% to 20% of first-year base salary, which is $15,000 to $20,000 for a $100,000 role. Direct recruitment avoids this fee but requires significant internal time investment.
What is the alternative to hiring a full-time HR manager?
A fractional HR arrangement provides ongoing, embedded HR support at a monthly retainer, typically $2,500 to $6,000 per month, with no recruitment fees, super obligations, or leave liabilities. For businesses with 10 to 60 employees, it is often a more cost-effective solution.
What happens if my HR hire does not work out?
The cost of a failed hire is typically estimated at 50% to 200% of annual salary when you factor in severance, re-recruitment, and productivity loss. For a $100,000 role, that could represent $50,000 to $200,000 in additional cost.
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