A labour-hire agency is a company which outsources employees to clients for the exchange of a predefined fee. The entire process of recruitment, from interview to fixation of salary is conducted by the skilled labour hire agency. The employees who are provided to the client’s company are not permanent employees, and any company can recruit labours for their short-term projects from a reliable skilled labour hire agency. The employees are paid by the labour-hire agency and clients can precede their payments though such third-party agencies.
Pros of a skilled labour-hire agency:
- Labour hire agencies provide all kinds of labour from unskilled to highly skilled professionals. The client company does not have to take any headache. They just hand over the responsibility of recruitment to the skilled labour hire agency and the rest is done by them.
- The whole process of recruitment is huge. It includes publishing advertisements for the recruitment drive, collecting and checking CVs, verifying the authenticity of employees and finally recruiting them. It is a lengthy process and involves a lot of time. The client company can save this expensive time by allotting the responsibility of recruitment to a skilled labour hire agency.
- The labour-hire agency is updated with all the latest market requirements and provides employees accordingly. They provide professional labours who will satisfy the client company's requirements properly. The responsibility of the employee’s wellbeing also lies with the skilled labour hire agency. In this case, as a client you do not need to take any liability or responsibility of your labours.
- Sometimes an employee provided by the labour-hire agency may leave the job in between without any notice. The client company need not worry because the labour-hire agency will provide a replacement within a very short time. So you do not need to stop your project or work and you can recruit more labour from such agencies.
- The employees provided by the skilled labour hire agency are highly skilled and trained. The client company does not have to waste time and money on the training of the hired employees which is a big advantage. Sometimes the labour-hire agency gives back the money to the client company if any employee leaves in between or causes any harm to the company.
- The client company does not have to worry about the salary and incentives of employees hired through a labour agency. The responsibilities about payroll, incentives, leaves, medical benefits and superannuation lie with the labour-hire agency. You just need to pay a fixed charge to the labour-hire agency and they will pay the wages to your labours.
Cons of a skilled labour-hire agency:
- The employees hired through a skilled labour hire agency are not permanent employees of the client company. As a result, they have very less control over these employees. They can leave the job without any notice which in certain cases can prove detrimental to the company's business.
- All employees do not have the same dedication and qualities. If employees hired through skilled labour hire agencies constantly leave the job, the client company faces huge difficulty in maintaining the smooth functioning of the company. It is very difficult to choose skilled labours and you must make a deal with a skilled labour hire agency that has huge experience in the similar field.
- The client company cannot terminate the job of an employee recruited through a labour-hire agency. The client company must inform the agency first which will take further decisions.
The above article is a detailed discussion of the pros and cons of a skilled labour hire agency. You can go through the article if you are planning to hire a labour- agency.