What Are The Differences Between a Recruitment Company and a Labour Hire Company?
Business owners or managers around the world always face the complex processes involved while hiring new talents to fill key roles in their business operations. Depending on their hiring capabilities, these executives may decide to outsource such complex recruitment tasks to an external agency. Now, they have an option to choose either a recruitment company or a labour-hire company from any of the labour recruitment agencies Sydney to recruit a new team member. Read on to find the differences between these two entities and choose the right one that suits your business needs.
• In a common man’s point of view, both the recruitment and labour-hire companies might look quite similar in their core operations. But a close examination of their roles, many significant differences can be noticed. Though both these entities offer labour solutions to businesses, but each differs fundamentally in its operations. Read on to find some interesting operational differences between them and understand how each works to fulfil the staffing needs of their respective clients.
• What is a recruitment company? In a simple sense, a recruitment company is just a matchmaker connecting a job seeker with companies looking for workers. This company handles all the manual tasks of HR and identify the right talents according to the business needs of its clients. Once the client approves the candidate, he or she will become a full-time employee of the company. Then onwards, the client company has the responsibility for paying wages and other entitlements to the newly recruited person. The recruitment company gets an agreed fee from the client for the services rendered to the client. The relationship between the candidate and the recruitment company ends here.
• What is a labour-hire company? A labour-hire company also help its clients in providing the right candidate as per the requirements given by the clients. The main difference is that the selected candidate will work at the clients’ place, buy employed by the labour-hire company. Such employment comes under the labour-hire agreement and the labour-hire company will pay all the wages, insurance and so on. Also, the relationship between the client and the candidate remains under the domain of the labour-hire company.
• What is the best option for business owners? While choosing between a recruitment company and a labour-hire company, a business owner needs to be smart and choose the right company that matches his business needs. As a general thumb-rule, one can go for a recruitment company for long-term needs and a labour-hire company for short term needs, temporary projects and even to fill temporary vacancies that occur for valid reasons like long leave etc.
• When it comes to hiring talents, either on a short-term or long-term basis, one should not forget the fact that a recruitment company is not the only source available in offering labour solutions. A reputed labour-hire company too, can provide all the staffing needs for the needy business owners. Business owners in Sydney who need to hire new or experienced talents can contact some of the leading labour-hire companies Sydney and get benefited.
That being said about the real difference between a recruitment company and a labour-hire company, it is the responsibility of the business owner to which model his business falls under as some of the vital differences could mean a lot for the business. It can be hard for these business owners to hit the ground running. Hence there should be clear knowledge of how these two entities operate. With a crystal-clear understanding, business owners can surely select the right one for their staffing needs.