19 Aug Why Hire a Chef from a Chef Agency?
CASUAL CHEF (EMPLOYEE) VS TEMP CHEF (CHEF AGENCY)
Chef Agencies, like Temp Chefs Australia, assume the role of the employer. Our team work hard to find the best Temp Chefs, interview them and send them directly to you. In exchange, you, the host employer, will pay the agency a fixed fee made up of taxes, insurances, statutory charges and other miscellaneous fees. The overall goal is to get you the skilled chefs you need without having to find them yourself.
The problem most hospitality businesses have with chef labour hire agencies is that their fees hike up the cost per employee, making the agencies appear far more expensive than they actually are.
Reasonable and fair agencies, like Temp Chefs Australia, will charge you approximately $38 per hour for qualified chef for shift performed anytime Monday to Friday, while you may only be willing to pay around $28 per hour per casual employee. With a $10 difference, why would anyone use a chef from a Chef Agency? Surely there must be a reason.
So, why do Chef Agencies charge so much? Let us break down the actual costs, compare them and highlight some additional benefits of using a temp chef.
Cost Comparison – Casual Employee Vs Labour Hire – FY 2016-2017
To show the difference between employing a casual chef on the books and using an agency chef, let’s look at some of the costs of both scenarios. The numbers we use are considered average, but they may vary depending on your type of hospitality business and which state you are located.
|Base Casual Award Wage – Qualified Chef Level 5 ( Mon-Fri 7am – 7pm)||$26.74|
|Payroll Tax (5%)||$1.38|
|Uniform Allowance (4 hour shift)||$0.54|
|Tool Allowance (4 hour shift)
Long Service Leave (1.9 %)
|Public Liability Insurance (3%)||$0.80|
|Additional Business Costs (provided by Labour Hire):|
|Payroll Costs ($350/yr)||$0.20|
|Training & Personal Development ($500/yr)||$0.28|
|Protective Equipment ($250/yr)||$0.14|
|Administrative Costs ($125/yr)||$0.07|
That total is the amount of money your company would pay each worker if you directly employed him or her instead of going through the chef agency. That’s around $3.50 difference from what your chef agency wants to charge you, and their cost is all inclusive. Do not be fooled when looking at the base price alone. It can be deceiving.
Using these percentages and see what potential benefits that $3.50 might be getting you. As a manager, you might not have to wear so many hats in your position. If you feel as if you are handling too many jobs, letting someone else worry about the labour might free up some time to devote to other matters in your business. The stress relief the agency might give you could make up for the $3.49, and you might find yourself be more productive in your business as a result.
Operational Benefits – Casual Employee Vs Labour Hire
Now that it is clear that using a temp chef for your business could be a worthwhile investment, let’s look at a few more benefits that utilizing a chef from a labour hiring agency, like Temp Chefs Australia offers.
- Added Flexibility – Save on labour costs by only booking chefs you need them. You can expand and shrink your team when required.
- No Commitment – Chef not living up to your expectations or no longer required?Leave the Human Resources to agency.
- Unattached Administration- Avoid the often frustrating and lengthy process of hiring employees, admin and payroll.Only worry about paying the agencies invoice.
At first glance, chef agencies seem like they charge exorbitant amounts for work that you could do internally, but when you look at the actual costs, it is clear that you are getting much more out of the small added cost.
Booking an experienced chef through Temp Chefs Australia might be just what you need to take your business to the next level.