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Free Financial Health Assessment for Labour Hire Agencies

What’s Your True Financial Health Score?

Most labour hire agency owners think their margin is around 18%.
In reality, it is often closer to 8–12% once super, leave provisions, recruitment and compliance costs are included. This 5-minute scorecard reveals where your agency really stands.

12 Questions

5 Minutes

Instant Clarity

No Obligation. Instant Results.

The Financial Pressure Facing Labour Hire Agencies

Early childhood labour hire agencies are operating in one of the most margin-sensitive sectors in Australia. Rising wages, educator shortages and increasing compliance obligations are eroding profitability.

21,000+

National Educator Shortfall Creating Recruitment Pressure

2:1

Wage Increases Are Outpacing Fee Increases

$15k - $25k

Estimated Cost to Replace A Single Educator

10%

The Difference Between Perceived and True Margin

The Margin Reality Check

Most agencies calculate gross margin. Very few calculate true margin.

What You Believe

18% Gross Margin

The Reality

8 - 12% True Margin

Where Does the difference go?

  • Superannuation

  • WorkCover

  • Annual leave provisions

  • Sick leave provisions

  • Long service leave

  • Recruitment costs

  • Training and onboarding

  • Payroll tax

What the Scorecard Measures

12 targeted questions across four critical financial areas.

Margin Health

  • True cost per hour calculation
  • Bill-to-pay ratio
  • Rate review frequency
  • Cost awareness

Cash Flow Health

  • Debtor days tracking
  • Invoice timing
  • Cash runway visibility
  • Weekly monitoring discipline

Operational Efficiency

  • Educator utilisation
  • Shift fill rate

Risk & Compliance

  • Client concentration
  • Award compliance confidence

Understanding Your Score

Most agencies calculate gross margin. Very few calculate true margin.

90 - 120: Excellent

Strong margin control and cash visibility. Focus on optimisation and growth.

70 – 89: Good

Solid foundation, but improvements available.

50–69: Caution

Warning signs emerging. Action recommended before pressure builds.

< 50: Critical

Immediate attention required to protect profitability and cash flow.

Ready to Find Out Your Score?

Complete the 5-minute assessment and see exactly where your agency stands.

About Steve Wilson

Steve Wilson is the Founder and Partner of BYN Accounting & Advisory. He works with early childhood labour hire agencies between $2M and $10M turnover, helping them understand true margins, manage cash flow and build sustainable growth.
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When we work with you, we’ll help you identify where your business is right now and where you would like it to be in the future using our "Now Where How" model. You don’t need to feel like you have to figure it all out yourself.

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