When you run a business it’s inevitable that you’ll need to employ staff. As the business grows so will your staffing needs. However, this can be when problems start to arise. Hiring staff is a time-consuming activity, it can be expensive to get rid of them, and you may only need the staff for part of the year.
This is why many companies turn to labor hire agencies. Of course, most people see this as a more expensive way to hire staff. But, the truth is that labor recruitment agencies can be a cost-effective solution.
How The Labor Recruitment Agencies Work
A labor hire agency interviews and assesses potential workers for different industries, experience levels, and roles. They then take them on their books. In effect, they will employ the worker.
Businesses, such as yours, can then approach the agency and request workers. You can define the timescale, qualifications, experience, etc. The agency continues to employ the worker, your contract is with them, not the worker.
How This Becomes Cost-Effective
The hourly rate of the agency will usually be higher than the hourly rate of pay you would give to an equivalent employee. However, there are several considerations that make an agency worker the cheaper option:
- Hiring Time
One cost that many people overlook is the time it takes to find a new employee and then train them in the specifics of your business. All of this takes time which costs you money. Consider what you could have been doing in the time it took to find a new employee. You may be surprised at how much this process costs you.
There is no such cost with an agency, you simply tell them what you need.
- Temporary
Agency workers can be short-term, long-term, or permanent. The choice is yours. An employee that needs to be hired for a specific period must also be dismissed via set procedures. In contrast, an agency worker is employed by the agency, you simply have a contract with the agency that can be canceled at any time.
This is great when you need additional staff at various points throughout the year, but not all the time. It saves you paying their wages throughout the year just so that they are there when you need them.
- Less Paperwork
Hiring through an agency is simple. You sign an agreement with the agency, get regular invoices, and pay. There is no need to setup payroll or create staff handbooks, etc. All the paperwork is dealt with by the agency, leaving you free to focus on your business.
Final Thoughts
When you start considering the savings possible with an agency you’ll realize that it isn’t just cost-effective. For many positions, it’s the best way of securing high-quality staff with very little effort on your part.
Regardless of what business you are running, you should take a little time to consider the benefits of using a labor recruitment agency. It can change the way you hire and the quality of your staff.
