When you’re running a business, from time to time you will be faced with the complex task of hiring new talent to fill integral roles within your business. Depending on your businesses hiring capabilities you may decide to outsource the complex recruiting process to an agency. But what is the difference between a recruitment company and a labour hire agency? And ultimately, which one should you be using to recruit your new team member?
What is a Recruitment Agency?
A recruitment agency connects people looking for a job with companies that have vacancies that’s would be suited to them. A recruitment agency will take a job description from their client, source a suitable candidate from their database or professional networks, and then present suitable candidates to the company. Once the company has selected the best fit for the role, the company will then employ that candidate directly and the recruitment company will take a finders fee
What is a Labour Hire Agency?
A labour hire agency in a nutshell also finds employers suitable candidates, but the main difference is that although working for the company seeking the candidate, the candidate will actually be employed by the labour hire agency, not the company they are completing work for. This type of employment falls under a labour hire agreement. The labour hire agency will fulfil wages, superannuation contributions, taxes and insurance and essentially send the candidate to work for the company.
What are the other key differences is these type of recruitment services?
Candidate Availability
Labour hire workers are reference checked, pre-vetted, highly experienced and available to start work straight away. They arrive on site ready to get to work, having been fully briefed on the role, safety protocols and equipped with appropriate PPE gear. Labour hire staff may have already worked with the agency for other clients so you have some peace of mind that they are going to be reliable, hard workers.
Using a recruitment agency increases your ability to meet with high quality candidates. They have access to a large talent pool of pre-screened and referenced candidates. This means you are only meeting with candidates that have been already carefully assessed and interviewed. However, candidates presented to a company by a recruitment agency will need to be evaluated and hired by the company that are looking for them. Although you will be given a recruitment guarantee from the agency to replace candidates that you are not satisfied with or do not pass their probation period, the process is not as simple.
Flexibility
Labour hire is totally flexible, so you can engage new staff at peak times or at short notice to ensure you meet deadlines. A major benefit of using Labour hire is that you can scale down your workforce during the quieter periods, once the project is complete.
When you engage with a recruitment agency and hire staff on a permanent basis, you will not be permitted to simply let these people go at the end of the project. However, a draw back to using a labour hire agency is that you are generally not allowed to offer permanent roles to their labour hire staff.
What is the best option for my business?
The type of agency you decide to use to recruit your new employees will depend entirely on your business needs; for example do you require a candidate urgently for a short term project? You may be better served using a labour hire agency who can quickly and easily respond to your needs, which will save you time and money.
However, If you are looking for a permanent employee with the view that this person will progress and grow within the company on a long term basis, you may be better suited to using a recruitment agency.
Is there a company that does both and can help me understand what I need?
The answer is yes; Advanced Group are recruitment specialists, for both permanent roles and short-term employment i.e. labour hire. We found that by combining both we can better assist our clients in finding the best possible workforce for their business or project
Need staff? Contact Advanced Group Today
Our candidates are professional, dependable and highly experienced. If you’re looking to fill a position, please contact Advanced Group today on 02 8086 3444 or email admin@advancedgroupservices.com.au