Labour hire is a phrase that has been increasingly thrown around in the employment sphere. Labour hire is taking more traditional forms of employment head on, and providing both employers and employees with highly sought after flexibility.
So, what exactly is labour hire? Labour hire, also referred to as On-Hire or On Demand employee services, involves employers sourcing workers from a labour hire agency, usually on a temporary basis. It is important to note that the workers are not employees of the business, but of the labour hire agency. This means that the contracted workers can jump from business to business, depending on the work that is available, and their suitability for the role. Also, since the workers are employees of the labour hire agency, most of the obligations associated with hiring them, such as wages, superannuation, and tax, are taken care of by the labour hire agency. The business employing the services of the labour hire agency just has to pay the agency a fee in exchange for the worker(s).

Traditionally, employment options have been much more rigid in their structure and often involve long-term, contracted arrangements. The hiring processes to source these employees occur in-house and the burden of responsibilities associated with employing the worker (such as pay, annual leave, insurance, etc.) are placed on the business itself.

Why Has There Been A Shift Towards Labour Hire?

The use of labour hire agencies has accelerated, particularly in industries such as, mining, construction, promotions and events, warehousing, retail, and so on. This is because labour hire provides both the employee and employer with unique benefits that are unavailable with more conventional forms of employment.

Benefits For Employers

1. Outsource The Recruitment Process

The recruitment process can often be a long and costly process for businesses, as it involves attracting appropriate applicants, screening them, selecting the employee, and taking care of the on-going responsibilities of hiring an employee. Employing the services of a labour hire agency allow businesses to outsource this entire process and redirect valuable resources and time to more core functions of the business. Also, labour hire agencies are experts in recruitment so they may be better equipped at identifying a great worker, than a business that does not specialise in this field. Labour hire agencies take the stress out of recruitment and enable greater effectiveness and efficiency with hiring.

2. Get The Right Workers For The Job Quickly

Another benefit of using a labour hire agency is that employers are able to quickly receive quality workers that match the requirements of the role. Labour hire agencies have access to a large database of pre-vetted workers, that possess a range of experiences, qualifications, skills, and knowledge. So, finding and connecting employers with a suitable worker should be a cinch. If the labour hire agency does not have a worker immediately on hand, they possess the expertise to quickly and easily find a quality worker, through the use of a range of channels.

3. Easily Scale Your Employee Base Up or Down

Labour Hire agencies allow employers to supplement their workforce during periods of increased demand, or to cope with both expected and unexpected absenteeism. Also, once the peak period is over, or absent employees return, there is no obligation to keep the labour hire workers on, since they are temporarily contracted. This helps to reduce employment costs, as labour hire agencies allow employers to hire workers as they need them. Recruitment via labour hire agencies allow businesses to stay dynamic and better respond to fluctuations in the market, without the obligations associated with taking on a permanent employee.


Benefits For Employees

1. Greater Flexibility in Their Work Life

Since the nature of work sourced through labour hire agencies is often temporary, workers are able to enjoy greater flexibility in their work life. These short-term jobs allow employees to balance labour hire work with other jobs, studies, family life, and so on. This flexibility allows labour hire workers to gain additional income, without adverse effects on other aspects of their life.

2. Gain Work Experience With A Range of Employers

Another benefit of gaining employment through a labour hire agency is that workers are able to gain a broader range of work experience from a variety of companies. This allows workers to build a more robust career history and resume, which helps make the worker highly employable and potentially more attractive than other candidates for future positions.

3. Get Job Opportunities Brought To You Directly

When workers sign up with a labour hire agency, jobs that are best-suited to their qualifications, skills and knowledge, will be brought directly to you. Labour hire workers won't have to spend significant chunks of their time sifting through the vast amount of job listings, and potentially enjoy a higher success rate with their applications.

The Future of Labour Hire in Australia

The labour hire industry is an industry on the rise. The employment of labour hire agencies to deal with business' recruitment needs is growing in momentum in various sectors, including mining and construction. According to the Australian Bureau of Statistics, approximately 600,800 people, which is 5% of all people in employment, found work through a labour hire agency in August 2016. This $20 billion industry has a predicted annual growth of approximately 2.4%, which indicates that it will continue to go from strength to strength in the near future.

Also, labour hire's strong focus on blue-collar jobs, in industries such as mining and construction will be another factor in its increased use. This is because there are many residential and infrastructure projects currently underway, or in the pipeline. These various residential and infrastructure projects will require a significant amount of workers to assist with their completion, leading to a boost in labour hire activity due to the increased demand.

The benefits that labour hire presents for both employer and employee, has made it increasingly popular across a number of industries in Australia, and has led to it becoming a more ubiquitous form of employment. This trend is expected to continue into the future, as more and more businesses are outsourcing their recruitment processes, and employees are recognising the work-life flexibility that labour hire agencies can provide.

Are you an employer looking for a labour hire agency to source quality workers? Or are you an employee looking for flexible job opportunities? Look no further than Workfast!
Contact us on our website or call 1300 824 403 today.