Do you know the true cost of your employee?
The true cost of an employee comes down to how they are being compensated over time. There are instances where employing full-time staff is more beneficial than hiring labour, and vice-versa. We break down the options so you can find the most cost-effective hiring strategy for your business.
Key considerations when deciding on your labour hire strategy:
With many companies remaining busy, yet having more incentive to streamline processes, it is more commonplace to use recruitment companies to source quality labour instead of hiring full-time staff directly.?
Whether you choose to go down the labour hire route, or employing staff on a full-time basis, there are monetary costs attached including:?
Think of these as non-negotiables for any employee you choose to onboard.
Benefits of employing full-time:
Lower staff turnover
When an employee is hired on a full-time basis, a stringent hiring process takes place with a specific criterion to qualify the most suitable candidate for the role. This process reduces staff turnover due to a better understanding of how the employee contributes to the company from a cultural and professional standpoint.
Steady team dynamics
The successful candidate is more likely to be a better fit with the company and team when a hiring process is carried out by the employer. It gives the employer has more opportunities to assess whether the candidate is the most suitable person.
Employee growth
Given that the candidate has job security and assuming they are in a role that they enjoy, they are likely to improve over time. As an employer, giving the candidate the tools to succeed means they can maximise their potential and better contribute to the business.
Benefits of labour hire:
Flexible working arrangement
Labour hire offers flexibility by allowing you to bring in workers as needed for short-term or project-based roles. This flexibility ensures that you can quickly scale your workforce up or down based on fluctuating business demands, reducing the need for long-term commitments.
领英推荐
Cost savings
Labour hire can often be more cost-effective than hiring full-time employees. It eliminates the overhead costs associated with long-term employment, such as benefits, leave, recruitment time and associated cost fees and training expenses, while providing workers only when required.
Access to skilled talent
Labour hire agencies specialise in sourcing highly skilled workers for specific roles. This means you can tap into a database of pre-vetted workers with skills that may not be easily available in the full-time job market, ensuring you get the right fit for your project or business needs.
Specialised recruitment
Labour hire companies handle the full recruitment process, allowing you to benefit from their expertise in selecting candidates that match your specific requirements. This means you don’t get bogged down in the administrative demands of compliance registrations, tickets and other requirements. It’s all done for you.
Enhanced productivity
By bringing in temporary workers with specialised skills for tasks or projects, you can boost productivity and efficiency. These workers are often able to hit the ground running, allowing your business to complete projects faster and maintain momentum without sacrificing quality.
To illustrate the cost savings of labour hire, take these two employee scenarios…
Final thoughts: weighing the true cost of labour hire
When deciding between hiring full-time employees or utilising labour hire, the true cost extends beyond the immediate financial considerations?such as salary and benefits. As we’ve explored, factors such as employee turnover, team dynamics, and long-term growth, which play an important role in determining which option will work best for your business.
Full-time employees can offer stability, continuity, and long-term growth potential, making them an ideal choice when you need dedicated talent who will contribute to your company’s objectives over time. They tend to be a better fit for roles that require deep integration into the company culture and a long-term commitment to your business goals.?
On the other hand, labour hire provides flexibility and scalability, which can be incredibly valuable for businesses that face fluctuating demand, require specialised skills for short-term projects, or need to adapt quickly. Labour hire arrangements also reduce the administrative burden of recruitment, leaving you with more time to focus on strategic business objectives.
Our Solution
Employ full-time staff that will form the core of your business and drive growth long-term. With the ever-changing landscape of the construction industry and other external factors coming into play, your business needs to be adaptable and flexible. That’s where the labour hire model comes in. Consider surrounding your?core team with blue-collar staff that compliment your business objectives while allowing you to save on costs when it counts, without sacrificing quality, workmanship and culture.?
If you want your business to reap the benefits of adopting the labour hire model, contact us today.