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The Hidden Costs of Understaffing - Why running lean at EOFY can backfire, and how temporary support can save more than it costs

Posted on 22 May 2025

​The right support at the right time helps protect people, performance and wellbeing.

We all know the end of the financial year (EOFY) is crunch time in Australian business. Reports are due, audits loom, donations spike, and sales targets must be met.

Yet time and again, I see organisations enter this critical period without the staff they need to succeed.

And the truth is: trying to "get by" with too few people often ends up costing much more than having the right support in place from the start.

When lean becomes a liability

In sectors like health, not-for-profit, finance, construction, and sales/marketing, the pressures of EOFY are non-negotiable. But choosing to tackle those pressures with a lean team – whether due to unfilled roles, employee leave, or cost-cutting – can trigger a cascade of challenges.

What might seem like a short-term saving can quickly lead to:

  • Delayed deadlines;

  • Compromised accuracy;

  • Lower staff morale;

  • Increased stress and burnout.

Even a single absence in June – whether from illness or resignation – can throw an entire team off balance. With workloads at their annual peak, there's rarely room for error or bandwidth for unexpected disruptions.

A perfect storm: talent shortages meet absenteeism

The current labour market is not making it any easier. In early 2025, unemployment remains low (hovering around 4%), and talent shortages continue to bite across nearly every industry.

Layer that with the rising wave of absenteeism and you have a perfect storm. Winter always sees an uptick in sick leave, but post-pandemic burnout has pushed those numbers even higher. Altogether, workplace absenteeism costs Australian businesses around $30 billion in lost productivity each year.

When you’re already short-staffed, even one unplanned sick day during EOFY can have ripple effects.

The silent costs you might be missing

I regularly speak with employers who hesitate to bring in short-term support. There’s concern about cost, onboarding time, or whether someone new can really contribute meaningfully. But I often ask a different question: what is it costing you not to hire?

I have seen the fallout when good teams are stretched too thin. Productivity slows. Mistakes creep in. Frustration builds. People get tired, and eventually they burn out.

This impact is especially pronounced in people-focused sectors:

  • In healthcare and not-for-profits, burnout can erode not just output but empathy and care.

  • In construction, an absent estimator or site coordinator can halt a week’s worth of progress

  • In finance, where EOFY is all about speed, precision and compliance, being short-staffed compromises all three.

Research supports what we’re seeing on the ground. Staff shortages contribute to burnout, and burnout is now the leading reason people leave their jobs. It becomes a cycle: understaffing leads to overwork, which leads to resignation, which leaves the remaining team under even more pressure.

Temporary support isn’t a luxury – it’s a strategy

EOFY only amplifies these pressures. Workloads peak. Stress rises. And without extra hands, something will give – whether it’s quality, timelines or team morale.

This is exactly where temporary staff can make a difference. Bringing in temporary support isn’t about overstaffing, it’s about right-sizing for a specific, high-pressure window.

Whether it’s a finance contractor helping reconcile end-of-year accounts, a receptionist covering leave in a community organisation, or an admin temp assisting with compliance reporting, temps allow you to keep moving without overburdening your core team.

The difference is not just operational. Temporary support gives your existing staff room to breathe. It protects your standards, maintains momentum and – perhaps most importantly – demonstrates to your people that they are supported.

Act early, not in emergency mode

EOFY should be a time to focus on results, not damage control. If your team is already stretched or if you’re anticipating leave, resignations or peak workloads, don’t wait until things are critical.

Bringing in the right support early allows new staff to settle in, learn your systems, and be at full capacity when it matters most. I’ve seen businesses transform from overwhelmed to well-oiled simply by planning ahead and adding one or two extra people for the busy period.

At Becks Wiggins Stokes, our temps are hand-picked, reference-checked and ready to contribute from day one. They don’t need handholding. They simply step in and get the job done.

For help finding temporary staff to support your team, or to find out if a temp is the right solution for you, please get in touch with me today on adelez@bwsrecruitment.com.au.

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