Google the best labour hire companies Melbourne or Perth, and hundreds of labour hire agency will appear. But why is it better to use a labour hire service to fill temporary and permanent blue collar roles than to recruit? Our research shows that there are seven reasons why using a labour hire agency is a great benefit for companies looking to fill different staffing needs.
The Australian Financial Review reported that on average, it takes 68 days for an Australian company to recruit for a new role successfully. This included the time from when the job is advertised to the new employee’s first day on the job, but doesn’t even take into account time spent for new employees completing site training, inductions and upskilling.
Using a blue collar labour hire company, staff can be placed as quickly as 24 hours. And to top it off, the labour hire agency will take care of the payroll, staff benefits, taxes and other time consuming but necessary legal and financial activities.
That means no more worrying about reading hundreds of resumes, finding people to interview candidates, or negotiating salary packages – a labour hire company will complete all of this.
2. REDUCED COSTS
According to new research discussed in the industry leading online magazine the Human Resources Director, it typically costs $18,982 to hire a new staff member. And if that employee is a manager or executive, that cost skyrockets to $34,440.
Add to this the $34,000 cost of the loss of productivity of having no one fulfilling that role for 68 days, and the training and upskilling new staff costs estimated by People Keep of $20,000 – that’s a staggering loss of $73,000 to replace one employee.
Using economies of scale, casual labour hire and even seasonal and permanent roles can be filled by labour hire companies at a fraction of the cost.
3. EFFECTIVE RECRUITMENT
Labour hire companies have one job – to find the best people to fill a company’s need, right when that business needs it most. Because their focus is solely on recruitment, labour hire services have refined their recruitment methods over time and can weed out the poor performers from the start.
And these experienced approaches to recruitment don’t just assess each candidates’ qualifications, experiences and licences; scientifically based assessments to understand each person’s work ethic, safety mindset and fit with different company cultures are also used. The success rate of finding a person who fits not just the required skillset, but with the company culture, is much higher using a job hire company than internal recruitment.
To sum it up, the benefit for employers is that labour hire companies will find staff are not just qualified – their staff will boost team morale, uphold safety culture and become loyal brand advocates.
4. READY TO WORK
The best labour hire companies ensure the staff they provide not only suit the culture of the company but are fully qualified and certified. When looking for skilled labour hire, particularly in mining, manufacturing and warehouse and logistics industries, all staff supplied by labour hire companies staff should have:
- Confirmed WHS inductions or safety training;
- VEVO work checks to ensure the right to work in Australia;
- and all licences such as forklift licences, HR Driver’s Licence and Working at Heights tickets should be up to date.
Many labour service providers use WorkPro, a national service that regularly updates the personnel documentation management systems to align with the latest workplace standards and legislation.
For any company, hiring via a labour hire company provides security and peace of mind that any personnel supplied are reliable, qualified, licenced and ready to work, whether they are welders, diesel mechanics, cleaners, driller offsiders or commercial spray painters.
5. CERTIFIED APPROACHES
Why use a labour hire service when internal recruitment is an option? And how do you know which labour hire companies to trust? The top labour hire companies Australia wide are recognised nationally and in the industry through several different certifications.
The StaffSure Certification was developed by the RCSA, the peak body for the recruitment and staffing industries in Australia and New Zealand. Its purpose is to reduce the legal risk for companies hiring labour, assure the integrity of the hiring firms, and highlight reputable labour hire providers.
Corporate RSCA membership allows labour hire companies to have access to the newest business tools, global research and current statistics to assist company’s looking to fill staffing positions. To be a member, the labour hire agency must uphold the ethical principles and industry standards that Australian corporations abide by – ensuring integrity in resourcing.
Internal resourcing cannot always access the latest and best tools and research, particularly when the HR department is a tiny section of what the company does. So why risk outdated recruitment methods when a certified labour hire agency can be used instead.
6. INDUSTRY KNOWLEDGE AND SPECIALIST EXPERIENCE
Australia-wide networks ensure that the best talent is found, no matter whether the role is for a trade assistant or aluminium polisher. Building long-term and personal relationships with employers and job seekers allows labour hire companies to connect the best qualified and reliable candidates with employers throughout the country. For an internal recruitment team, there often isn’t enough time in the day to headhunt top talent, let alone participate in national networks.
And nothing is worse than needing to recruit for a specialist role that’s never been recruited for internally before. Fortunately, years of experience in people resourcing mean that labour hire services have an understanding and can provide specialist expertise for those unique roles, across different industries. Forward-thinking labour hire company’s also join an additional membership with NPAWorldwide. This membership includes education on the latest recruitment developments and gives access to global recruitment pools so that the best staff can be sourced – something that many small recruiting teams wish they could access.
The other benefit of a labour recruitment company is that have offices Australia-wide which has the added advantage of being able to draw on large skill pools from across the country. This means the best staff can be found, regardless of whether the company needs a boilermaker, heavy-duty fitter or geologist.
7. ACCOMMODATE PEAK PERIODS
Mobilising large groups of skilled workers at short notice is a tough gig for any recruitment department. But any top labour hire company knows from experience that technical blue collar industries such as commercial cleaning, transport and manufacturing do not have the same resourcing requirements year-round.
Being able to accommodate for peak periods such as seasonal fluctuations, projects that need to ramp up quickly, or the recent health pandemic, is of huge benefit for companies who want to avoid the long delays involved with recruitment.
Whether the role to fill is short-term or permanent, labour hire companies that specialise in technical blue collar staff will have reliable, qualified workers ready to hire immediately, no matter the season.
So before the next role opens up, Google “labour hire companies near me” to find the lists of labour hire companies in Melbourne or Perth CBD, and check that they provide all of the benefits that the top labour hire companies such as TRS, can offer.