Differences Between A Recruitment Company and A Labour Hire Firm

At first glance, a labour hire Perth company and labour hire recruitment firm might look quite similar in what they do, but examine their roles more carefully, and also significant differences will emerge. They may be in exactly the same line of business — that of providing labour to companies — but the way they go about it's fundamentally different.

While the two companies are experienced recruiters who aim to simplify the often long, odious and expensive process of hiring new employees, understanding how each functions is imperative to ensuring that you chose the right one for your staffing needs.
To assist you differentiate between a labour hire and recruitment firm, we shall be studying each comprehensively to understand how each works, how each can benefit your business, and the best to suit your specific labour needs.

A recruitment company is a matchmaker connecting individuals looking for gainful employment with businesses searching for workers. They basically take over all the manual work of HR ensuring that applicants provided have the necessary skills, qualifications and experience required to fill the role and meet the business' needs.

Once approved by the client company, the candidate provided by the recruitment firm becomes a full employee of the client company which is responsible for paying wages, entitlements and managing them henceforth.

How recruitment Businesses work

Although every entity has their own means of doing things, recruiting companies generally follow the exact same pattern.

  • The agency will then sift through their CV database and identify individuals that best meet the customer's criteria and draw up a shortlist. If the skill sets aren't available from their database, they will advertise and evaluate candidates for that specific position.
  • The client is then handed the best fitting CVs for a last selection and the agency will arrange and organize the closing interviews.
  • The chosen candidate is inducted into the client's company as a "direct" worker on the company's payroll. A finder's fee is paid to the recruiting agency, and their relationship with the candidate ends there.

    Advantages of using a recruitment company

    Businesses gain several benefits from using a recruiting agency for their labour requirements.

    1. It saves both time and money. The practice of selecting a new employee is not only long but expensive too. When you employ the services of a recruiting company, you're basically farming out the recruitment function and applying the recruitment company's database to find the best employee to fill a vacancy.
    2. Large skill pools. Labour recruitment businesses maintain large databases of workers with different kinds of skills. This allows them to recruit for almost recruitment agency any position within a short time. A recruitment company takes all the hassle out of recruiting, all you need to do is supply the job description of the employee you need through email or phone call, and they'll do the rest of the job.
    3. Marketplace knowledge. Recruitment firms are vastly knowledgeable in the labour market for the industries they recruit for. This enables them to receive the best employees for you for those market skillsets.
    4. Robust recruitment processes. Recruitment companies have specialised recruitment processes that ensure they just supply the best labor for your business.

    Labour hire firms — about them

    Labour hire firms are similar to recruitment companies because they link up ready and willing workers with companies seeking labor. That is about where the similarities end. Unlike recruitment agencies that completely deliver the worker after the recruitment process, labour hire firms provide workers on a 'labour hire' arrangement.

    What this means is that the workers provided to the client company either for short term or long term positions aren't employees of the customer. Thus worker wages and entitlements including insurance covers fall into the world of the labour hire company. They are the ones that maintain the worker's payroll.

    When stationed at the customer's organisation, the employee will work just like regular employees, wear the company uniform if required, and will use the company's tools and resources. The direct employer-employee connection will, however, remain under the labour hire company's domain name.

    Businesses stand to gain Many benefits from labour hire, these include:

    1. Reduced prices. Like recruitment companies, labour hire businesses take care of the entire recruitment process including advertising the positions, evaluating CVs, screening candidates, providing preliminary training and onboarding. http://www.thefreedictionary.com/recruitment In addition to this, labour hire companies offer payroll maintenance for their employees freeing you from doing it.
    2. Reduced downtime. Unlike recruiting companies, candidates supplied by labour hire firms are not suggestions to be considered but employees who have been vetted, trained, and deemed capable of taking on the function. This makes them ideal for emergency cover because they can come in and begin working immediately reducing the effect of employee absences. Whether an employee misses work because of illness, maternity leave or annual leave, labor hire makes sure that you get a worker to take over their duties in a short while.
    3. Experience and experience. A labour hire arrangement enables you to bring in the specialised skills and experience you require for some project on hire basis without needing to take on the employee full time. This means that you will not have to train your employees on a skill that will only be required when the job is complete.
    4. Flexibility. For plenty of companies, production requirements keep changing. Labour hire enables you to correct your labour force to suit the current workload. You, therefore, don't have to hire permanent staff that will not be needed when the peak season or project is complete.
    5. Trying workers before hiring. To your permanent staff requirements, you can use labour hire to discover a worker's compatibility with your company before you hire them. On-job evaluation is the best way to figure out whether an employee will be a fantastic fit.
    6. Short notice and emergency cover. Sometimes worker shortages cannot be foreseen such as if a worker falls ill or gets injured. Because labour hire firms have vetted candidates ready and willing to begin work with little notice, you can get a temp to cover your labor shortfall minimising interruptions.
    7. Robust recruitment processes. Labour hire firms are experienced in recruiting labour and have developed processes to ensure that candidates supplied to your company are the best for your needs.
    8. Bulk recruitment. Because labour hire firms have large databases of pre-screened workers, they have the ability to fill a large number of positions concurrently without compromising the quality of labor provided.
    9. Network. A labour hire firm will have a larger network for finding workers than any company might have. The wide network enables them to fill any vacant position you've really quickly.
    10. Market knowledge. Labour hire firms have an in-depth comprehension of the labour market for all industries they recruit for. They understand current hiring complexities,