Hiring Your First Employee as a Tradie: What Nobody Tells You

The Growth Crossroads

You're turning down work. You're working 60+ hours. Customers are waiting weeks for appointments. Every sign says it's time to hire.

But hiring your first employee is a massive step. Here's what nobody tells you.

The Real Cost of an Employee

If you're paying $35/hour, your actual cost is closer to $50-60/hour:

• Base wage: $35/hour
• Super (11.5%): $4/hour
• WorkCover: $2-5/hour (varies by trade)
• Annual leave: ~$2.70/hour (4 weeks ÷ 52)
• Sick leave: ~$1.35/hour (10 days ÷ 52)
• Training time: $5-10/hour initially
• Vehicle, tools, uniform: Variable

True cost: $50-60/hour minimum. Double your hourly rate is a safe estimate.

When to Hire (And When Not To)

Signs you're ready:

• Consistently turning down 3+ jobs per week
• Bookings are 2+ weeks out
• You've had this demand for 6+ months (not a spike)
• You have cash reserves to cover wages for 3 months
• You're ready to manage, not just work

Signs you're NOT ready:

• Demand is recent/uncertain
• You're hiring to "save time" (you'll spend MORE time initially)
• No cash buffer
• You just want a helper, not an employee

Apprentice vs Experienced vs Subcontractor

Apprentice

• Cost: Low wage, but lots of training time
• Pros: Mould them to your standards, long-term investment
• Cons: Can't work alone, requires supervision, 3-4 year commitment

Experienced Tradesperson

• Cost: Higher wage, but productive immediately
• Pros: Can work independently, brings experience
• Cons: May have bad habits, higher expectations, harder to find

Subcontractor

• Cost: Higher rate, but no ongoing obligations
• Pros: No super/WorkCover, use as needed, easy to end
• Cons: Less loyalty, less control, must be genuine subcontractor (not sham contracting)

The Hidden Time Cost

Here's what nobody tells you: your first hire will INCREASE your workload initially.

• Training takes 2-4 weeks of close supervision
• Quality checking their work
• Managing schedules and jobs
• Handling HR, payroll, compliance
• Fixing their mistakes

Budget 6 months before you see true time savings.

5 Hiring Tips from Experienced Tradies

1. Hire slow, fire fast. Take time to find the right person. If it's not working, don't drag it out.
2. Check references properly. Call their previous employers. Ask: "Would you rehire them?"
3. Trial period. 3-month probation is standard. Use it.
4. Get insurance sorted first. WorkCover, public liability with employee coverage.
5. Document everything. Employment contract, policies, expectations in writing.

Alternatives to Full-Time Employees

Not ready for the full commitment? Consider:

• Part-time employee: 2-3 days per week
• Casual employee: No guaranteed hours, higher rate, more flexibility
• Labour hire: Agency handles employment, you pay a premium
• Virtual services: Answering services, admin assistants handle non-trade tasks

The Bottom Line

Hiring your first employee is a business milestone. Done right, it multiplies your capacity and income. Done wrong, it drains your time, money, and sanity.

Be honest about whether you're ready. If you are, prepare thoroughly. If you're not, there's no shame in staying solo a bit longer.