What Exactly Is Labour Hire
The function from the agency is usually to recruit and pick the staff because of their clients' roles, and importantly, to keep a pool of available workers to the various assignments that could arise daily. The agency is just not of great importance and use for their clients whenever they don't have appropriate staff when asked. Labour hire is often a convenient option for companies who are required staff, such as the desire to (or can't) hire directly. In Australia in 2002, there was over 230,000 labour hire workers according to the Australian Productivity Commission, knowning that number is continuous to trend upwards. For a look at why so many organizations are using agencies, read the following benefits.
1) Flexibility - in case a new shipment of stock arrives, there are other staff available on call to handle it. Similarly, a small company can seem to be comfortable tendering or quoting for a big contract, since they know they're able to access staff to back them in the event they win the documents.
2) Non-commitment - many industries are seasonal, requiring a more substantial workforce during some times of the season, and less workers during other times. Upon an agency, companies can certainly increase or decrease their staff levels as needed.
3) Once off assignments are OK - if the cleaning company a contract to do a major clean with a cruise ship that docked in the city only once or twice annually, they may easily have the right degree of staff for the task almost overnight, whereas it would not fit the bill to utilize countless staff for the entire year just expecting the shipped to arrive.
4) Outsourced HR - companies can spend hundreds of hours advertising, interviewing, checking backgrounds, checking references, and making selections - just to must do this again 2-3 weeks down the line if the employee does not work properly out. Simply by using a agency, this no longer will be the problem in the company; instead it's handled with the agency entirely.
5) Outsourced payroll and admin - interpreting awards, calculating timesheets, giving an answer to staff enquiries, and processing payroll are tasks that consume substantial amounts of time. When an employer chooses to interact staff via an agency, these characteristics are common performed externally, taking out the administrative burden from in-house staff.
The phrase labour hire is especially an Australian term - far away it's known as staffing or manpower, and the companies who provide the service these are known as manpower agencies or staffing agencies.
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