Differences Between A Recruitment Business and A Labour Hire Company

At first glance, a labour hire Perth company and labor hire recruitment company might look quite similar in what they do, but examine their roles more closely, and important gaps will emerge. They might be in exactly the same line of business — that of providing labour to companies — but the way they go about it is fundamentally different.

While both 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 help you distinguish 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 particular labour needs.

A recruitment company is a matchmaker linking individuals looking for gainful employment with organisations https://slangsnowboard.com/alise/differences-between-a-recruitment-business-and-a-labour-hire-company/ searching for workers. They essentially take over all of the manual work of HR ensuring that applicants supplied have the necessary skills, qualifications and experience needed to fill the role and meet the business' needs.

Once accepted by the client company, the candidate offered by the recruitment company becomes a complete employee of the client company that's responsible for paying wages, entitlements and managing them henceforth.

How recruitment Businesses work


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

  • The bureau will then sift through their CV database and identify people that best meet the client's standards and draw up a shortlist. If the skill sets are not available from their database, they will advertise and evaluate candidates for that particular position.
  • The client is then handed the best matching CVs for a final selection after which the bureau will arrange and organize the closing interviews.
  • The selected candidate is inducted into the client's company as a "direct" employee on the company's payroll. A finder's fee is paid to the recruitment agency, and their connection with the candidate ends there.

    Benefits of using a recruiting company

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

    The process of selecting a new employee isn't only long but expensive too. When you employ the services of a recruiting company, you are essentially farming out the recruitment function and utilising the recruitment firm's database to get the best employee to fill a vacancy.

  • Large skill pools. Labour recruitment businesses maintain large databases of employees with various kinds of skills. This allows them to recruit for virtually any position within a brief time.
  • Convenience. A recruitment company takes all the hassle out of recruitment, all you need to do is supply the job description of the worker you require through email or telephone call, and they will do the rest of the job.
  • Marketplace knowledge. Recruitment companies are vastly knowledgeable in the labor market for the businesses they recruit for. This enables them to get the best employees for you even for those market skillsets.
  • Robust recruitment processes. Recruitment companies have specialised recruitment processes that ensure they just provide the best labour for your company.
  • Labour hire firms — about them

    Labour hire firms are similar to recruitment companies in that they link up ready and willing workers with companies seeking labor. That's 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 given to the customer company either for short term or long term positions are not employees of the customer. The workers are hired out to them. They are the ones that maintain the employee's payroll.

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

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

    1. Reduced prices. Like recruitment businesses, labour hire companies look after the whole recruitment process including advertising the positions, assessing CVs, screening candidates, providing preliminary training and onboarding. In addition to this, labour hire companies provide payroll maintenance for their employees freeing you from doing it. Unlike recruiting companies, candidates provided by labour hire firms aren't suggestions to be considered but workers who have been vetted, trained, and deemed capable of taking on the role. This makes them perfect for emergency cover as they can come in and start working immediately reducing the impact of employee absences. Whether an employee misses work because of sickness, maternity leave or annual leave, labour hire makes certain you get a worker to take over their responsibilities in a short while.
    2. Experience and experience. A labour hire arrangement enables you to bring in the specialised skills and expertise you require for some job on hire basis without having to take on the employee full time. This means that you will not need to train your employees on a skill that will only be required once the project is complete.
    3. Flexibility. For plenty of companies, production requirements keep changing seasonally. Labour hire lets you adjust your labour force to suit the current workload. You, therefore, don't need to hire permanent staff that will not be needed when the peak season or project is complete.
    4. Trying employees before hiring. For your permanent personnel requirements, you may use labour hire to find out a worker's compatibility with your company prior to hiring them. On-job evaluation is the best way to figure out whether an employee is going to be a good fit.
    5. Short notice and emergency cover. Sometimes worker shortages cannot be foreseen such as if a worker falls ill or gets injured. Because labour hire companies have vetted candidates ready and ready to begin work with little notice, you can get a temp to pay your labor shortfall minimising interruptions. Labour hire companies are experienced in recruiting labour and have developed processes to ensure that candidates provided to your organization are the best for your needs.
    6. Mass recruiting. Because labour hire firms have large databases of pre-screened workers, they have the ability to fill a large number of positions concurrently without https://www.washingtonpost.com/newssearch/?query=recruitment compromising the quality of labour provided.
    7. Network. A labour hire firm is going to have a larger network for finding workers than any employer could have. The wide network allows them to fill any vacant position you've really quickly.
    8. Market knowledge. Labour hire firms have an in-depth comprehension of the labour market for all industries they recruit for. They have knowledge of available talent, their location and how to get them. They understand current hiring complexities, current salaries and available skill-sets and will provide viable