CATEGORY AUSTRALASIAN DENTIST107 COLUMNISTS The hidden cost of hiring: Why recruitment decisions shape practice performance Pam McKean By Pam McKean, Director, AB Dental & Medical Employment Agency Hiring decisions are often judged on one simple metric: cost. However, in reality, the nancial impact of recruitment extends far beyond advertising fees or agency charges. For dental practices, hiring is one of the most in uential decisions a ecting pro tability, patient retention, and long-term growth. At AB Health Group, we support practices across Australia with both permanent and temporary sta ng solutions. One consistent pattern we see is this: the true cost of recruitment is rarely understood until something goes wrong. Many practice owners assume recruitment is a straightforward process – advertise, shortlist, interview, and hire. In practice, it is rarely that simple. Common challenges include high volumes of unsuitable applicants, low response rates in competitive markets, di culty assessing long-term t, and pressure to ll roles quickly. Each of these factors introduces risk, and risk in recruitment is expensive. Even before a hire is made, time and resources are being consumed. Advertising, reviewing applications, coordinating interviews, and conducting reference checks all take time. In most practices, this responsibility falls to senior team members who would otherwise be focused on patient care or revenue-generating activity. is creates an immediate opportunity cost. e real nancial impact becomes clearer after a hire is made. New employees typically take three to six months to reach full productivity. During this period, performance is often below optimal levels, and existing team members must provide additional support. is can reduce e ciency across the entire practice. ere is also the impact on patient experience. Dental practices rely heavily on trust and continuity. When key sta leave or new sta are introduced, it can a ect patient con dence and retention. Even small disruptions in consistency can in uence long-term patient behaviour. Loss of knowledge is another critical factor. Experienced employees carry valuable insight into systems, processes, and patient relationships. When they leave, that knowledge leaves with them, and rebuilding it takes time and e ort. To better understand how these costs accumulate, consider the example above. While this example re ects a relatively controlled scenario, the reality is that recruitment outcomes are not always predictable. Delays in hiring, limited candidate availability, or internal pressures can extend timelines and increase costs signi cantly. In a best-case scenario, where a departing employee provides su cient notice and the transition is well managed, costs can still approach the equivalent of the employee’s annual salary once training, productivity loss, and onboarding are considered. In more complex situations, costs escalate rapidly. Unplanned departures, reduced performance prior to exit, disruption to team dynamics, and loss of patient relationships can result in total costs exceeding double the annual salary of the role. is is why the approach to recruitment matters. Internal recruitment can work e ectively in certain situations, particularly where the role is straightforward and time pressure is low. However, it can also lead to longer hiring timelines, inconsistent candidate quality, and increased risk of poor hiring decisions. Engaging a specialist recruitment partner introduces an upfront cost but signi cantly reduces risk. Access to prequali ed candidates, faster time-to-hire, and better alignment between candidate and role can deliver stronger long-term outcomes. In many cases, reducing vacancy time alone o sets the investment. It is also important to consider the exit process. Understanding why employees leave provides valuable insight into retention and practice culture. Patterns around career progression, management, and workplace environment often emerge over time, allowing practices to make improvements and reduce turnover. Ultimately, recruitment should be viewed as a strategic function rather than an administrative task. e most successful practices recognise that hiring decisions have long-term implications for performance, culture, and pro tability. e cost of getting recruitment wrong is not just nancial. It impacts team morale, patient experience, and business growth. At AB Health Group, we work with practices to reduce hiring risk, improve decision-making, and ensure recruitment delivers long-term value. e goal is not simply to ll a role, but to strengthen the business as a whole. u Cost Component Example Calculation Estimated Cost Advertising & Job Boards SEEK + industry platforms $500 – $1,000 Internal Time (Screening 20–30 hours @ $80/hr $1,600 – $2,400 & Interviews) Recruitment Process Sourcing, shortlisting, reference checks $2,000 – $5,000 Training & Onboarding 2–3 months reduced productivity $15,000 – $22,000 Productivity Loss Reduced output during transition $4,500 – $6,500 Patient Attrition Loss of patients / reduced bookings $15,000 – $25,000 Total Estimated Cost: $38,600 – $61,900 Equivalent to 35% – 77% of a $80K–$110K salary Example: Cost of Replacing a Practice Manager Pam McKean is the Director of AB Dental & Medical Employment Agency. The company has been in operation for over 22 years. In that time, AB Dental & Medical has grown into the country’s leading recruitment agency for the dental industry, servicing all sectors from government, corporate and private practice. Currently, AB Dental & Medical services over 3,000 businesses with recruiting services including supply of temporary, contract and permanent employees.
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