Guidance on Utilising This Recruitment Channel Comparator for SMEs

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Purpose:
Designed for Australian small and medium enterprises (SMEs), HR managers, and business owners, this tool provides data-driven comparison of recruitment channels to help you allocate hiring budgets effectively. Input your hiring plans across multiple channels, seniority levels, and volumes to receive detailed cost-per-hire analysis and time-to-hire estimates. Ideal for annual budget planning, evaluating recruitment agency proposals, and optimizing your hiring strategy.
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Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) and revisit it when planning hiring campaigns, evaluating new recruitment channels, or reviewing your talent acquisition strategy. Use it to justify recruitment budget requests to leadership by showing data-driven cost comparisons. Compare your actual results against the estimates to refine future projections. Track which channels deliver the best quality-to-cost ratio over time—not just the lowest cost per hire.
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Understanding Recruitment Cost Basics:
‍The true cost of hiring extends far beyond the obvious expenses like job board fees or agency commissions. For Australian businesses, the average cost per hire ranges from $4,000 for entry-level positions to $18,000+ for senior roles when you include all direct and indirect costs. Hidden expenses include internal HR/management time (valued at $85/hour based on median Australian manager salaries), interview time, assessment tools, background checks, and opportunity cost of unfilled positions. The quality of hire matters too—a bad hire can cost 2-3x the annual salary in turnover, lost productivity, and team disruption.

Key Recruitment Channels Explained:
- Job Boards (Seek, Indeed): These platforms charge per advertisement, typically $400-800 for a 30-day listing depending on visibility level and industry. The tool estimates 15-40 hours of internal time depending on seniority (reviewing applications, screening calls, coordinating interviews). Time-to-hire averages 2-6 weeks depending on role complexity. Job boards generate high application volumes but require significant screening time. Best for: high-volume hiring, entry to mid-level roles, and businesses with internal recruitment capability.

- Recruitment Agencies: Agencies typically charge 15-25% of the candidate's first-year salary as a success fee (only if they place someone). The tool calculates this as a percentage you can customize. Internal time investment is lower (5-15 hours) since agencies handle sourcing and initial screening. Time-to-hire is often faster (2-5 weeks) due to their candidate networks. Agencies provide replacement guarantees (typically 3 months). Best for: senior roles, niche skills, time-critical hires, or businesses without internal recruitment resources.

- LinkedIn Recruiter: This subscription service costs approximately $9,000-12,000 per year for unlimited job postings and InMail credits. The annual cost is amortized across all hires made through the platform. Internal time is moderate (12-35 hours) since you're doing sourcing and screening. Time-to-hire ranges from 2-10 weeks depending on role. Best for: businesses hiring regularly (5+ positions per year), professional/white-collar roles, and passive candidate targeting.

- Employee Referral Programs: These programs offer bonuses (typically $1,000-2,500) to employees who successfully refer candidates. Internal time is reduced (8-15 hours) since referrals are often pre-vetted. Time-to-hire is fastest (1-6 weeks) due to trusted recommendations. Referral hires typically have 40% higher retention and faster onboarding. Best for: culture-fit hires, hard-to-fill roles, and building a strong employer brand. Requires active promotion internally.

- Internal HR/Recruiter: Hiring a dedicated recruiter costs $60,000-90,000 in salary plus on-costs (super, leave, equipment). The tool estimates 25-70 hours per hire depending on seniority, spread across multiple candidates. Time-to-hire is longer (3-12 weeks) as everything is done in-house. Viable only for businesses hiring 10+ positions per year. Provides maximum control and builds internal capability but has high fixed costs.Scale Suite Recruitment Service: Our flat-fee recruitment service ($2,500-4,500 per hire depending on seniority) includes full-cycle recruitment: job design, advertising, screening, interviewing, and offer management. Minimal internal time required (2-6 hours for final interviews only). Time-to-hire matches or beats agency timelines (2-5 weeks). Combines agency expertise with transparent flat-fee pricing. Includes 3-month replacement guarantee.

How to Interpret Results: The tool shows cost per hire, total investment, and time-to-hire across all selected channels. The "best value" designation goes to the channel with the lowest cost per hire, but consider quality and time factors too. For example, agencies might cost more per hire but deliver faster results and higher quality candidates. A $2,000 difference in cost per hire is insignificant if one channel saves you two weeks of lost productivity from an unfilled role (worth $4,000+ for most positions).

Strategic Insights: Most successful businesses use a multi-channel approach: employee referrals for culture-fit hires, job boards for volume entry-level hiring, and agencies  for senior/niche positions. Track your quality of hire metrics (90-day retention, manager satisfaction, time-to-productivity) by channel - not just cost. The cheapest channel isn't always the best. Consider the opportunity cost of internal time - if your hiring manager spends 40 hours recruiting, what strategic work isn't getting done?Benefits for SMEs:
This tool helps you make data-driven recruitment decisions and optimize budget allocation. Businesses using channel cost analysis report 30% better recruitment ROI and more predictable hiring budgets. You can confidently negotiate with agencies, justify recruitment investments to leadership, and identify opportunities to shift spend to higher-performing channels.