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Labour Hire Agency vs Recruitment Agency

By fastlabourhire • Feb 28th 2022
Labour Hire Agency vs Recruitment Agency

Are you looking for a worker in the construction industry? If you’re a construction manager looking for good casual staff, do you go to recruitment agencies or labour hire agencies?

What difference does it make, and does it really matter?

Labour hire companies and recruitment agencies both do the same thing – match employees with employment opportunities, and employers with labourers.

Which option you go with will depend very much on the nature of the job (full-time, part-time or casual) and the type of employee you need.

How you classify the employee (on contract, casual) has implications for tax, wages and entitlements.

However, to derive the most benefit for your worksite, it’s important to know the differences between recruitment and labour hire agencies.

What is a recruitment agency?

For long-term employment opportunities, working with a recruitment agency may be the way to go. Replacing an internal HR team by outsourcing your hiring to a recruitment agency can save heaps in money and manpower.

This is often an ideal solution for small to medium sized businesses.

A recruitment agency finds people who would be a suitable match for the particular job you want to fill. It could be a full-time position or a temporary one in peak work seasons.

The recruitment agency interviews them, checks out their references, conducts more interviews if necessary and hires them on your behalf.

After that, they are employed by you and you are responsible for their wages, entitlements, insurance, taxes, working conditions, onsite training and so on.

Benefits of using a recruitment agency

benefits of using a recruitment agency

Working with a recruitment agency is not a quick fix, however. They are aiming to get you the best possible long-term candidate and it takes time to properly assess the job requirements and to see if the most appropriate candidates would be a good fit.

Then there is the screening and interviewing process, after which you need to induct and train them in their role once they have been accepted.

And even then, they probably still need to successfully complete a trial period before you are completely satisfied.

Naturally, because the recruitment agency has recruited them for you, the employer, you will be handling pay, entitlements and so on plus paying a finder’s fee to the recruitment agency.

However, this will be worth it if the right person for the job is found with minimal time and effort taken away from your business.

Recruitment agencies also have a pool of good-quality candidates who have already applied for other jobs via the agency.

Their extra knowledge of qualified potential employees is a bonus if you are concerned that you might not get the right person.

Recruitment agencies, like labour hire agencies, are easy to deal with – straightforward paperwork and no nasty hidden ‘surprises’ such as extra surcharges.

If you are looking to fill a full-time position or to replace our HR division, working with a recruitment agency could be the best solution for you. 

What is a labour hire agency?

If you are wanting good employees on a short-term basis, a labour hire agency is the right place for you to start. There are many benefits of working with a labour hire agency.

Click here to read our detailed article about how labour hire companies work if you want to find out more.

Unlike dealing with a recruitment agency, a labour hire company will be able to send you workers on the day you need them without lengthy interviewing procedures.

You can usually trust the labourer who is sent to you as labour hire agencies have already screened the labourers on their database.

They will come with the appropriate tools, equipment and OH&S training so all you need is a short induction before they are ready to begin.

Benefits of using a labour hire agency

benefits of using a labour hire agency

Many industries, especially the construction industry, thrive by employing specialised skilled workers for certain components of a larger project. In this article we provide you with 7 ways on how labour hire can improve your construction business.

For instance, if you are a construction manager, you might not be able to afford to employ a full-time welder but a part-time welder could earn a substantial amount for a few months before moving on to the next construction site and you would save expenses in wages and entitlements.

This scenario applies to peak and seasonal work periods and also when labourers are able to fill in quickly for no-shows and employees on sick leave.

Having a good relationship with a reliable and creditable labour hire company means you know the labourers from their database won’t let you down and can be trusted to do the job on hand in a professional manner.

A huge advantage is that when your labour hire agency sends you an exceptional skilled labourer, you know who to hire in the future when you need that job done again.

This gives you peace of mind knowing the job will be done well and saving you time and money regarding hours and days spent interviewing and inducting new general labourers, especially if the job becomes full-time and your exceptional labourer applies and gets the position.

Labour hire agencies must provide WHS and safety training plus workplace and tools management.

Employing a worker from a labour hire agency saves you even more time and money not having to train them in these areas.

You can also save time on admin as payroll, entitlements, training, taxes and insurance are handled by the labour hire company, though the responsibility of OH&S is handled by both you and the labour hire agency.

Labour hire agencies provide you with the best employees fully trained and ready to go.

They are only on the agency’s database if they are professional, on time, with a good attitude, able to work with others and show initiative on their own.

With a reputable labour hire agency, you can trust every labourer they send to you.

If you decide to work with a labour hire agency, call Fast Labour Hire today on 9001 6541 or contact us online.

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