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Maintaining the right number of employees can be difficult especially when your company’s workload keeps fluctuating with different seasons. Hiring too many employees would mean paying for idle employees during low peaks while hiring few employees would mean a shortage of labour during peak times – quite the predicament.
Labour hire helps you solve this problem by providing an army of workers that is always on standby, ready and willing to work. And what’s more is that you won’t have to pay them when they are not working.
How labour hire works
Labour hire is an arrangement between a business and a labour hire firm which provides employees on a hire basis. What this means is that the client (you) does not employ the workers directly but hires them from the labour hire firm.
Payments are therefore made to the labour hire company and not directly to the on-hired employees placed in the company. As a result, employee payroll is maintained by the labour hire company.
Benefits of skilled labour hire
Skilled labour hire benefits your company in the following ways:
1. Reduced costs. The process of hiring a new employee is expensive and takes a lot of time to complete. From advertising the vacancies to vetting the candidates, it can be quite a while before you get the right fit. Labour hire eliminates the whole process providing a vetted worker ready to work expeditiously.
2. Large skill pools. Labour hire firms keep a large database of workers with different skills and qualifications. This gives your company access to different kinds of skills from one place meaning that you can have a large number of positions filled at once.
3. Reduced downtime. Because labour hire firms always have ready and willing workers on standby at all times, labour shortages can be covered very quickly reducing the amount of downtime to the minimum.
4. Expertise and experience. In addition to bringing in skills that your employees may not possess, labour hire workers will also bring in the experience they have gained from working in different companies during their career.
5. Specialised recruitment. Labour hire firms are highly specialised entities that focus on providing employees for clients in different industries. This makes their recruiting processes efficient, effective and less costly.
Labour hire is crucial to keeping labour costs low while still maintaining the productivity and quality of output in your company.
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