Recruitment companies and labour agencies are two things that are often used synonymously since many people think that the two things have the same function. On the contrary, they have differences that distinguish them from one another.
Many people fall prey to this misconception primarily because of the nature of their operations which is recruiting qualified people and sending them out to their respective clients. They are also essential in businesses that are in need of staffing since they function mainly to simplify the typically long and tedious process of hiring new workers. But that’s where the similarities end.
Although they are in the same line of business, that is, to provide labour to businesses that are in dire need for it, when carefully scrutinised, one can see that there are a lot of things that set the two apart. You will realise that there is a stark contrast in the way they operate their services and why they should not be used interchangeably.
In this article, we will take a closer look at the differences between a recruitment company and a labour agency like Labor Solutions.
1. Nature of Recruitment
Recruitment companies serve as a match-making service that connects candidates seeking employment with employers looking for workers. Many companies choose to outsource this service to save time and money. Getting new employees is a long and winding journey after all.
Working with recruitment agencies means companies are handed out candidates, but it is still entirely up to the company if the candidate passed their own set standards or not. If they did, they will pay a finder’s fee to the recruitment agency and hire the candidate as their own employee.
On the other hand, when you get labour hire from a labour hire agency, you get the workers that can work with you for short- or long-term projects, but you cannot hire them as your own workers. Unlike the recruitment company’s process of handing over the workers completely, labour hire firms simply provide workers through a ‘labour hire’ agreement.
2. Wages and Salaries Coverage
Given the key difference stated previously, their wages and salaries are also handed out in a different manner. Employees hired through a recruitment agency, for instance, will be paid by the company that hired them through the agency.
Worker wages and entitlements, including insurance covers, fall into the labour hire agency’s responsibility if you get your workers through this channel. They are the ones making sure that all the workers get their wages and other benefits. If you would rather skip the process of preparing payroll and handing out salaries, then perhaps getting a workforce from a good labour agency in Sydney is an option you should consider.
3. Varied Downtimes
Candidates provided by recruitment companies are suggestions that have to be considered, evaluated, and hired by the company looking for them, while labour hire agencies provide workers that have already been vetted, trained, and rendered capable of taking on the role by the labour hire officers involved.
This means that if you are pressed for time and resources, you can reduce downtimes better when you get workers through a labour hire agency. Workers outsourced from labour hires are generally more ideal for short notice openings or emergency covers that need immediate relief.
Whether an employee has to take maternity leave, annual leave or is too sick to work, labour hire makes sure that you get a worker who is perfectly capable to take over for the duration of your employee’s absence.
4. Adaptability and Support Capability
A lot of production requirements for businesses are affected by seasonal changes. This means that you can have a lot of demand during peak seasons, and less on off-peak ones. Labour hire enables you to adjust your labour force to your current workload.
When you get a permanent staff through a recruitment company, there is a high possibility that you would need to let them go once the project is complete or when there are no more projects to be done at all, only to find yourself scrambling for workers once the demands come in heaps.
Which Should You Choose?
Is labour hire agency good for you?
If you are looking for a permanent employee, then working with a recruitment company makes perfect sense. However, if you are looking for a labour solution that can address your urgent requirements and changing demands, then working with a labour agency in Sydney is a smart idea. Remember, know your needs first before proceeding.
Work with a Labour Agency in Sydney Today!
If you are looking for a reputable labour agency in Sydney, look no further than Labor Solutions. Being one of Sydney’s first labour hire solutions provider, we have gained experience and the relevant know-how that made us one of the most trusted choices among the prominent companies that we have worked with.
Our loyal client base is a testament to how we prioritise quality above all else. For labour hire solutions, you can call on to Labor Solutions. Contact us today at 02 9896 5881!