Retention Over Recruitment

The Secret to Thriving Centres

Australian centres are spending more than ever on recruitment. In fact, the average centre invests around $89,000 annually per position just to keep replacing staff. Meanwhile, top-performing centres with 95% retention rates spend half that amount and deliver 40% better outcomes. The difference? They’ve broken free from the recruitment treadmill and built strategies to keep great staff.

The Australian Recruitment Reality Check

The numbers tell a clear story. Turnover in the education sector sits at 32% annually, while healthcare sees around 28%. Replacing one professional costs between $47,000 and $127,000, and it takes an average of 89 days to fill a vacancy. It’s no surprise that two-thirds of centres report being in constant recruitment mode.

The hidden costs make things worse. Recruitment fees alone range from $15,000 to $35,000 per hire, while lost productivity during vacancies can add $23,000 to $45,000. Training investments of $8,000 to $15,000 are lost every time someone leaves, and team morale suffers as remaining staff carry the load.

This is the recruitment trap: Centres get stuck filling positions rather than building reasons for staff to stay. A Sydney childcare centre recently spent $340,000 recruiting 12 roles in just 18 months. Meanwhile, a Perth centre of the same size invested $67,000 into retention and only needed to recruit twice.

Why Retention Beats Recruitment Every Time?

Retained staff deliver results that recruitment can’t match. They onboard new colleagues three times faster, achieve 45% higher satisfaction scores, and maintain stronger client and family relationships. Knowledge continuity is preserved, referrals increase, and productivity compounds year on year.

The cost difference is staggering. A high-turnover centre spends $267,000 per position over three years on recruitment fees, lost productivity, and training resets. In contrast, a retention-first centre invests $23,000 annually in staff support, totalling just $69,000 across the same period. The result? A $198,000 saving per position over three years, alongside better client outcomes and stronger reputation.

What High-Retention Centres Do Differently?

The difference begins with mindset. Instead of asking, “How do we fill this role quickly?”, high-retention centres ask, “Why would someone want to stay here long-term?”
They follow a five-pillar retention strategy:

  • Purpose-Driven Culture: Clear missions, values-based decisions, recognition, and pulse surveys.
  • Growth and Development: Individual development plans, $2,500+ annual PD budgets, and internal promotion pathways.
  • Work-Life Integration: Flexible schedules, wellness programs, and fair workloads that prevent burnout.
  • Fair Compensation and Benefits: Benchmark salaries, performance incentives, and comprehensive packages.
  • Strong Leadership: Coaching, transparent communication, conflict resolution, and open-door policies.

This blend creates a culture where staff feel valued, invested in, and secure enough to build long-term careers.

Australian Market Success Stories

The evidence is clear. Bright Futures Learning Centre in Melbourne cut turnover from 45% to 8% in just two years. By investing $34,000 into retention initiatives, they saved $156,000 in recruitment costs, attracted a three-month waiting list, and boosted parent satisfaction by 67%.

On the Sunshine Coast, an allied health hub reduced turnover from 38% to 12% through a structured retention program. They not only stabilised staffing but also expanded services and introduced premium pricing, achieving a 340% ROI within 18 months.

Early Warning Signs Your Centre Needs a Retention Focus

There are red flags every manager should watch for. Recruitment becoming routine, with more than two hires per quarter, is a key sign. Exit interviews pointing to repeated issues, rising sick leave, and burnout also suggest deeper problems. Client complaints about staff changes and competitors poaching your people are further warnings.

When recruitment costs exceed 15% of annual revenue, it’s no longer a staffing challenge it’s a business risk.

Building Your Retention-First Strategy

A retention transformation doesn’t take years it can start in 90 days.

In the first month, centres should audit their retention barriers with surveys, exit interview analysis, and benchmarking. Months two and three focus on quick wins such as recognition programs, better communication, and targeted training. By the end of 90 days, career pathways, succession plans, and long-term systems should be embedded.

Break the Recruitment Cycle Forever

At Radical Recruitment, we help Australian centres stop filling positions and start keeping them filled. Our retention-first approach has already helped over 200 centres achieve measurable results:

  • 73% reduction in turnover.
  • $198,000 savings per position over three years.
  • 45% improvement in client satisfaction.
  • Zero recruitment stress for more than 12 months.

We don’t just provide candidates we help you build teams.

Schedule your free retention strategy session today and break the recruitment cycle for good.