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Differences Between A Recruitment Company And A Labour Hire Firm

There are many ties in business when you could do with a little extra help. Sometimes this is temporary to deal with a specific demand and other times it’s because you’ve grown enough to justify an additional member of staff. Either is generally a good thing for your business.

Unfortunately, looking for the right member of staff can be a time consuming and frustrating experience. Although you can have a probationary period for your new staff this may not be enough to tell you whether they are a good long term option. Equally if they turn out to be not as good as you hope then you’ll need to go through the hiring process again.

The answer for many businesses is to look at either a recruitment agency or a labour hire firm. But, what’s the difference?

The Labour Hire Firm:

A labour hire firm will have a number of employees on their books, all have specific skill sets. When you need an extra employee you go to the labour hire firm and ask them for someone with a specific skill set.

Your need can be for a day, week, month or much longer term. The labour hire firm will provide you with an employee who has the relevant skills. They will work at your premises under your guidance in the same way as any other employee.

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However, the difference is that they are not your employee; they belong to the labour hire firm. The hire firm is responsible for the employees insurance, payroll and other legal entitlements. All you need to do is pay the labour hire Sydney firm.

There is no recruitment process involved but you will be getting suitably qualified workers. This is a great way to minimize costs as you can take on staff for just as long as you need them. You also won’t need to undertake training and it won’t cost you anything if they are sick or even on maternity leave.

Perhaps the greatest benefit is the ability to get an employee at short notice.


The Recruitment Agency:

In contrast a recruitment agency will help you to find the right member of staff for your business. You’ll need to supply them with a detailed description of what you need and they will supply you with the details of any people on their books who may fulfill that description.

The agency will handle all the advertisements and initial sifting of applicants. You’ll then need to interview the final selection and choose the appropriate candidate.

This approach minimizes the time you’ll spend looking for a new employee. There is a charge associated with using this service to find your next employee but there are also guarantees that allow you to reject the employee within a set time period and reclaim your funds.

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The advantage of this approach over the traditional hiring method is that you’ll reduce the tie you need to spend and gain access to a larger pool of talent. Both agencies have their role to play in a successful business; it’s just a case of knowing which is right for your current needs.

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