In Australia, the local and international workforce is hired through different processes. There is a workforce shortage across all industries in Australia, so companies also hire international workers. For local hiring, companies spend on advertising, salaries, and training. For international hiring, visa, sponsorship, and other processes must be completed. We will explain the difference in costs between hiring local and international employees in Australia in this guide on Cost of Hiring International Staff in Australia vs Hiring Locally.
Cost of Hiring Local Employees in Australia
The cost and process of hiring local staff in Australia can vary across different industries. Each industry has its own hiring requirements, recruitment methods, and associated costs. This guide on the Cost of Hiring Local Staff in Australia explains the key expenses involved in recruiting and onboarding local employees.
Advertisement Cost – Advertising costs for hiring local employees typically range from AUD 1,000 to AUD 1,500. These costs may include social media promotions, company website listings, and online job portals.
To hire a local workforce, companies advertise jobs through their own websites and job portals. They also promote vacancies on social media and through third-party platforms. In addition, companies use offline advertising methods, such as ads at metro stations, airports, and on large digital screens, but usually do so indirectly through advertising agencies.
Recruitment Agency Fees – Recruitment agencies in Australia usually charge employers around 10% to 12% of a candidate’s annual salary. In most cases, the fee ranges from approximately AUD 5,000 to AUD 15,000 per hire. The total cost depends on the candidate’s job position, experience level, industry, and specific hiring requirements.
If a company does not hire a workforce directly, it takes the help of a trusted third-party recruitment agency. Recruitment agencies hire both national and international skilled and professional workers. They manage the hiring process according to company requirements, including interviews, KYC verification, skill assessment, and education verification, to provide qualified and suitable talent.
Salary and Wages – The average salary and wages for local employees in Australia typically range from AUD 50,000 to AUD 80,000 per year. However, salaries can be higher or lower depending on the industry, job role, skill level, and experience of the employee.
Training and Onboarding Costs – Some employees are freshers, so they need training and onboarding. For this, companies have to manage both cost and time.
Superannuation Contributions – Local employees are entitled to superannuation contributions, which are paid for their retirement. Companies are required to make these payments according to government rules and regulations.
Also Read: Australia Work Visa for Employers: Sponsoring Foreign Workers (482 Visa Guide)
Cost of Hiring International Staff in Australia
In this guide on Cost of Hiring International Staff in Australia, we will explain the major expenses involved in recruiting and onboarding international employees
International Recruitment Agency Fees – Recruitment agencies in Australia usually charge employers around 10% to 20% of a candidate’s annual salary. In most cases, the fee ranges from approximately AUD 5,000 to AUD 18,000 per hire. The total cost depends on the candidate’s job position, experience level, industry, and specific hiring requirements
To hire international workers, companies often pay an international recruitment agency. The agency manages the entire hiring process, including all required procedures and documentation for international candidates. This makes the hiring process easier for the company, but it also involves higher costs.
Visa Sponsorship Costs – Visa sponsorship costs in Australia typically range from AUD 3,000 to AUD 8,000. However, the total cost may be higher or lower depending on the visa type, business size, and specific hiring requirements. This estimate includes all related costs. To hire an international workforce, companies provide visa sponsorship. The company pays for it and must follow all government rules and complete all required processes for the workforce. The company may also need to provide other benefits to the workers.
Candidate Relocation Expenses – Candidate relocation expenses, including flight tickets and temporary accommodation, usually range from AUD 1,000 to AUD 3,000 per employee. However, the total cost may vary depending on the candidate’s location and the support provided by the employer.
Training and Onboarding Costs – Training and Onboarding Costs – Companies provide training and onboarding to international workers. They need time to understand the workplace, company policies, and work processes. Because of this, the training and onboarding costs for international workers are usually higher than for local workers.
Advantages and Disadvantages of Hiring International Staff in Australia vs Hiring Locally
| Factor | Hiring International Staff | Hiring Local Staff |
| Hiring Cost | Higher due to visa fees, sponsorship, relocation, travel, and onboarding expenses. | Lower as there are no immigration or relocation costs. |
| Recruitment Time | Longer because of visa processing, documentation, and compliance requirements. | Faster due to a simpler recruitment and onboarding process. |
| Talent Pool | Provides access to a global talent pool and specialised skills. | Limited to candidates available within Australia. |
| Skill Availability | Helps fill labour shortages and hard-to-find roles. | Suitable for positions where local talent is readily available. |
| Training Needs | May require additional training on Australian workplace culture and regulations. | Requires less training as employees already understand local work practices. |
| Legal Requirements | Involves complex visa, sponsorship, and immigration compliance obligations. | Follows standard Australian employment laws and procedures. |
| Workplace Knowledge | Employees may need time to adapt to local business practices and customer expectations. | Employees are already familiar with Australian workplace standards and customer needs. |
Also Read: Staffing Agency in Australia for International Employers: How to Hire Locally
Conclusion
Australia is facing workforce shortages across many industries, which is why companies hire both local and international employees. Cost of Hiring International Staff in Australia vs Hiring Locally is an important factor businesses consider when planning their workforce strategy.
Local employees are easier to hire because the recruitment process is simpler and faster.
However, hiring international employees involves higher costs. Companies need to manage visa sponsorship, migration compliance, relocation support, and other related processes, which can increase overall hiring expenses.
From a long-term perspective, hiring international employees can be beneficial because businesses can access skilled and professional workers. Ultimately, the hiring decision depends on your business budget and timeline. Companies should make recruitment decisions by considering compliance obligations and long-term workforce planning.