{"id":15097,"date":"2025-01-16T14:13:05","date_gmt":"2025-01-16T04:13:05","guid":{"rendered":"https:\/\/www.squadrecruitment.com.au\/?p=15097"},"modified":"2025-02-06T10:26:21","modified_gmt":"2025-02-06T00:26:21","slug":"are-contract-chefs-cheaper-than-permanent-chefs-in-australia","status":"publish","type":"post","link":"https:\/\/www.squadrecruitment.com.au\/are-contract-chefs-cheaper-than-permanent-chefs-in-australia\/","title":{"rendered":"Are contract chefs cheaper than permanent chefs in Australia?"},"content":{"rendered":"<p><b><span data-contrast=\"auto\">Worried about your kitchen hiring budget? Getting staffing right in an Australian food business is tricky at the best of times, and when you compare hourly wages to day rates it can often look like contractors are too expensive (even if they\u2019d be ideal gap-fillers for your roster).\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But, there\u2019s quite a few hidden costs to hiring permanent chefs that you need to be aware of, which show that it&#8217;s often cheaper to hire contractors to fill short-term needs.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So what do you need to know? Let\u2019s take a look.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4 aria-level=\"2\">The hidden costs of hiring permanent in-house chefs<\/h4>\n<h5 aria-level=\"3\">1. Salary is just the beginning<\/h5>\n<p><span data-contrast=\"auto\">We know on the surface it seems like a contractor\u2019s rates are much higher than a permanent chef\u2019s wages, but wages are only where your costs start. To secure a permanent employee, remember that you\u2019ll also be paying:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Sick and annual leave entitlements<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Parental leave, if applicable<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Public or cultural holidays<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Payroll tax<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Superannuation<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Medicare<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Insurance<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5 aria-level=\"3\">2. The cost to hire and train<\/h5>\n<p><span data-contrast=\"auto\">Next you must factor the costs to find, interview, hire, onboard and, in many cases, train your new chefs. Even if you hire someone fully qualified and with a lot of background experience, there will still be a period where they\u2019re less productive as they adjust to their new working environment.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This all builds up. In fact, <\/span><a href=\"https:\/\/elmosoftware.com.au\/resources\/research-reports\/2024-hr-industry-benchmark-report\"><span data-contrast=\"none\">an ELMO study<\/span><\/a><span data-contrast=\"auto\"> found the average cost to hire in Australia to be $20,000, and the average time it takes for a new employee to become fully productive is just over a month. Additionally, the average cost to train someone is $2,000.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">These costs are an amalgamation of recruitment and onboarding costs, plus the slowdown in productivity.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5 aria-level=\"3\">3. Cost of inflexibility<\/h5>\n<p><span data-contrast=\"auto\">We all know it&#8217;s possible to become over or understaffed in the kitchen as customer demand changes unexpectedly.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The risk here is that, when your team is full of permanent talent, you may end up with a situation where you\u2019re paying multiple salaries without needing to \u2013 where there&#8217;s not enough demand to justify the size of the kitchen. The lack of flexibility adds to that total budget.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5 aria-level=\"3\">4. Cost of employee turnover<\/h5>\n<p><a href=\"https:\/\/www.aigroup.com.au\/news\/reports\/2023-economics\/factsheet-labour-turnover-in-2023\/\"><span data-contrast=\"none\">AI Group data<\/span><\/a><span data-contrast=\"auto\"> estimates the staff turnover rate of Australian hospitality to be about 19%, the highest of any sector in the country. We see this high rate of job mobility in the length of time chefs tend to stay in their jobs \u2013 in a <\/span><a href=\"https:\/\/openrepository.aut.ac.nz\/items\/90384000-13f2-40ed-9809-70e2324410d6\"><span data-contrast=\"none\">study of Australasian chefs by AUT<\/span><\/a><span data-contrast=\"auto\">, researchers found that two-thirds of chefs have been in their job less than three years.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This is a fairly impermanent workforce, and always has been. While staff coming and going is the norm for kitchen roles, it can seriously add to staffing costs \u2013 that cost-to-hire above must be repeated essentially every couple of years.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5 aria-level=\"3\">5. Cost of poor cultural fit<\/h5>\n<p><span data-contrast=\"auto\">The last hidden cost to factor is the cost of getting it wrong \u2013 hiring someone who isn\u2019t a great fit for your kitchen, who either leaves very quickly or who you must get rid of to replace with someone more suitable.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This one is considerably harder to calculate, as it\u2019s very dependent on the business, hiring manager and work culture. But, it\u2019s something to keep in mind \u2013 speeding up the hiring process in order to cut recruitment costs can actually double the budget instead, if you get it wrong.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4 aria-level=\"2\">5 ways contract chefs could save your business money<\/h4>\n<p><span data-contrast=\"auto\">While we\u2019re not suggesting that every food business should switch entirely to temp chefs (more on that below), there are a lot of potential savings to be had by hiring contractors in specific situations.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Some of those benefits include:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li><span data-contrast=\"auto\">You only pay their rate, no leave entitlements or add-on costs.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Their insurance is usually covered by their temp chef recruitment agency.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">You gain greater control of your staffing budget \u2013 scale it up or down based on seasonal need.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">There\u2019s no big expense if you lose a contractor, you can just ask the agency for a replacement. You might even get that replacement for free if your initial chef leaves within the first few months.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Temp chefs allow you to access pre-vetted, highly qualified talent to get in-demand skills and reinvent your menu to suit new trends.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><b><span data-contrast=\"auto\">Learn more:<\/span><\/b> <a href=\"https:\/\/www.squadrecruitment.com.au\/the-top-6-benefits-of-hiring-temp-chefs-a-success-story\/\"><span data-contrast=\"none\">The top 6 benefits of hiring temp chefs + a success story<\/span><\/a><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>Should I hire in-house or contract chefs?<\/h4>\n<p><span data-contrast=\"auto\">The short answer is that it depends on your situation.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you find that your food business is very subject to shifts in season, customer demand or food trends, switching mainly to contract chefs could help you to stay on top as your needs grow, shrink or change. Contractors can also fill gaps in your roster very quickly, allowing you to take more time to carefully pick a permanent replacement \u2013 to avoid that doubling up of recruitment costs.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Alternatively, you might consider hiring one or two in-house chefs to maintain consistency in the kitchen and to help orient new staff, while supplementing this small team with contract chefs to suit changing demand. Rapidly scale up if they need help, then scale back down for quiet seasons.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Learn more:<\/span><\/b> <a href=\"https:\/\/www.squadrecruitment.com.au\/how-to-choose-a-contract-chef-recruitment-agency\/\"><span data-contrast=\"none\">How to choose a contract chef recruitment agency<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5 aria-level=\"3\">Not sure what you need?<\/h5>\n<p><span data-contrast=\"auto\">Get in touch with our team of experts at Squad Recruitment. We know what it takes to create success in Australian hospitality, and hiring chefs is our specialty. We can help you understand who you\u2019re likely to need, put in place a recruitment strategy tailored to your unique business and find the best people to fill your kitchen.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Learn more about <\/span><\/b><b><span data-contrast=\"auto\">our expertise in <a href=\"https:\/\/www.squadrecruitment.com.au\/hospitality-leisure-retail-and-recruitment\/\">hiring temp chefs<\/a><\/span><\/b><b><span data-contrast=\"auto\">, or <\/span><\/b><a href=\"https:\/\/www.squadrecruitment.com.au\/contact-us\/\"><b><span data-contrast=\"none\">contact us directly<\/span><\/b><\/a><b><span data-contrast=\"auto\"> to chat about your business.<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Worried about your kitchen hiring budget? Getting staffing right in an Australian food business is tricky at the best of times, and when you compare hourly wages to day rates it can often look like contractors are too expensive (even if they\u2019d be ideal gap-fillers for your roster).\u00a0\u00a0 But, there\u2019s quite a few hidden costs&hellip;<\/p>\n","protected":false},"author":17,"featured_media":15100,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","footnotes":""},"categories":[58],"tags":[],"class_list":["post-15097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-staffing-tips"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/posts\/15097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/comments?post=15097"}],"version-history":[{"count":6,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/posts\/15097\/revisions"}],"predecessor-version":[{"id":15106,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/posts\/15097\/revisions\/15106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/media\/15100"}],"wp:attachment":[{"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/media?parent=15097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/categories?post=15097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.squadrecruitment.com.au\/af-api\/wp\/v2\/tags?post=15097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}