The Annual Revenue Loss of a Missing Educator

Ratios decide how many children a room can safely enrol

When you can't find an educator, you may lose more than time

A missing educator doesn't just create a rostering problem. Because childcare centres must meet educator-to-child ratios at all times, one vacant role can reduce the number of children a centre can enrol.

If a centre can't fill the role, it may need to reduce places, combine rooms or close a room altogether. That's a direct loss of revenue.

How quickly the revenue loss adds up

Assume a centre charges $140 per child per day, a typical full-day fee for many long day care centres before Child Care Subsidy, and operates 48 weeks a year. If a missing educator means reducing full-time enrolments, the annual revenue loss can be substantial:

• 3 places lost: $2,100 a week, about $100,000 a year

• 5 places lost: $3,500 a week, about $170,000 a year

• 8 places lost: $5,600 a week, about $270,000 a year

Losing just five full-time places could mean approximately $170,000 in lost revenue each year.

Why one educator can affect several enrolments

Educator-to-child ratios aren't optional, and educators must be working directly with children to count towards the ratio. Under the National Quality Framework, for example:

• Children from birth to 24 months require a 1:4 educator-to-child ratio.

• Children aged 24 to 36 months require a 1:5 ratio, so one missing educator in a toddler room can mean five fewer children.

• Ratios for children aged three to preschool age vary by state and territory, for example 1:11 in Victoria and 1:10 in New South Wales.

So if a centre loses a Diploma educator and can't replace them, it may not be able to run a room at full capacity until the role is filled.

Compare that with sponsorship

Sponsoring a permanent educator through Vhire may cost approximately $13,500–$15,000 in year one. That includes a placement fee of around $8,500, paid only when you hire, plus employer-side migration costs.

• Sponsor a permanent educator through Vhire: about $13,500–$15,000 in year one

• Lose 3 enrolments: about $100,000 in lost revenue a year

• Lose 5 enrolments: about $170,000 in lost revenue a year

• Lose 8 enrolments: about $270,000 in lost revenue a year

The potential revenue loss from reduced enrolments can be many times higher than the cost of securing a permanent educator.

Sponsorship protects capacity

Sponsorship isn't only about filling a vacancy. It protects your centre's ability to operate at full capacity. A permanent educator supports:

• Stable ratios and room operations

• Consistent care for children and families

• Stronger team continuity

• Less reliance on agency casual staff

• Protected enrolment revenue

Vhire connects centres with registered migration agent partners for the sponsorship and visa process. Vhire is not a migration agent and doesn't give visa or immigration advice. Whether your centre is in regional New South Wales, Victoria or Queensland, South Australia, Western Australia, Tasmania, the Northern Territory or the ACT, you can brief us on a role at https://www.vhire.com.au/employers.

Regional and remote centres across Australia

These costs hit hardest in regional, rural and remote towns, where local educators are scarce and vacancies stay open longer. Vhire can help childcare centres in communities across every state and territory, such as:

• New South Wales: Dubbo, Orange, Tamworth, Wagga Wagga, Albury, Coffs Harbour, Bathurst and Broken Hill

• Victoria: Ballarat, Bendigo, Shepparton, Mildura, Warrnambool, Traralgon, Horsham and Echuca

• Queensland: Townsville, Cairns, Toowoomba, Mackay, Rockhampton, Bundaberg, Gladstone and Mount Isa

• South Australia: Mount Gambier, Whyalla, Port Augusta, Port Lincoln, Port Pirie, Murray Bridge and the Riverland

• Western Australia: Geraldton, Kalgoorlie, Broome, Karratha, Port Hedland, Bunbury and Albany

• Tasmania: Launceston, Devonport and Burnie

• Northern Territory: Alice Springs, Katherine, Tennant Creek, Nhulunbuy and Palmerston

The simple takeaway

If a centre can't find an educator and must reduce five enrolments at $140 per day, it could lose about $170,000 in revenue each year. Sponsoring a permanent educator may cost around $13,500–$15,000 in the first year, a far smaller investment than the revenue at risk.

These figures are illustrative. Actual losses depend on occupancy, room structure, age group, daily fees and whether the centre can safely combine rooms. For centres operating near capacity, though, a missing educator can quickly become a major revenue issue.