While both labour hire firms and recruitment companies might be in the same line of business, the process is fundamentally different. Understanding how each operates is crucial to ensuring you choose the right one for your staffing needs.
Recruitment company – what are they?
Recruitment companies are a matchmaker for individuals looking for employment, and organisations looking for workers. They perform all of the manual work of HR, ensuring candidates provided have the necessary skills, qualifications and experience needed to fill the role.
Once accepted by the client company, the candidate becomes a full employee of that client company. This means the client company is responsible for paying wages, entitlements, ect.
Labour hire firms – what are they?
Similar to recruitment companies, labour hire firms such as IWF Staff, link up ready and willing workers with companies seeking labour. The major difference between the two, is that labour hire firms provide workers on a ‘labour hire’ arrangement.
This means that workers provided to the client company for a short or long-term basis, are not employees of the client. Instead, the workers are ‘hired’ out to them. As a result the labour hire firm is in charge of wages and entitlements, and not the client company.
While working at the client organisation, the employee will work just like regular employees. They wear the company uniform if required, and use the company’s tools and resources. The employer-employee relationship, however, will remain with the labour hire firm.
What is the best option for your business?
When choosing between a recruitment company and labour hire firm, it really depends on your needs. If you need a permanent employee to fill a position, a recruitment company would be a great fit. If you find your company has varying short-term labour needs, a labour hire firm would be a better option for you.
If you think you could benefit from the services of IWF Staff, give the team a call today!
