The Australian Government Productivity Commission report identified that more than 1,000,000 Australians are actually employed in a labour-hire or perhaps an independent contractor arrangement. Furthermore, there are actually more than 5,000 labour-hire companies in Australia.
Labour hire is actually a big business, with more than twenty billion dollars of revenue generated every year and more than fourteen billion dollars in wages being paid, not to mention the great other insurance and workers compensation it generates. In the last twelve months, the growth of labour and casual hire workers has increased in Australia by 43,000.
Labour hire is specifically useful in the following circumstances:
Skills and experience shortages – Where companies have skills and experience shortages, they can lean on labour-hire companies with a greater reach and access to employees to help in maintaining or perhaps growing their productivity levels;
Catering for short term operational spikes – Labour hire companies to assist companies with short term spikes, orders, growth and allow them to meet the demands of the business without burdening the business with higher recruitment costs, as well as ensuring they do not retain folks for longer than needed for the short term need; Small to medium business overhead control – Some businesses don’t have access to an abundance of internal recruitment teams – most businesses are actually businesses that are small in Australia where the owner and staff wear several hats – so a quick call to a labour-hire company can save the small to medium business a good deal of money and time. They can essentially outsource the recruitment process to experts.
Save money on training – Responsible labour-hire companies will train and develop the folks they send the way of yours, ensuring the insurance risks are actually mitigated and controlled for you. Still, more importantly, they demonstrate a degree of care.
The emergence of Responsible labour-hire companies:
A responsible labour-hire company could be identified as a business that does the following things:
Actively trains and retains the folks they send to the business yours – ask your current supplier what their retention rates are;
It puts the safety and productivity of the men and women they supply to the top – by dealing with the customer to make sure the workplace is actually supportive and safe – expect them to visit you and work with you to determine the safety of the workplace of yours for the folks they send the way of yours; Is actually actively involved in sourcing brand new possibilities for the folks they supply beyond the job they’re doing today – ensuring continuity of income for individuals. This shows a degree of genuine care that many labours hire companies cannot demonstrate.
The latest moves in a few states to apply a licensing framework to labour-hire companies is actually causing the cream of labour-hire companies to rise to the surface. And more of a focus on industrial manslaughter, safety and worker productivity. Several companies are actually active and dynamically engaged in the ongoing training of personnel as part of their business. Most labour-hire companies don’t actively train the folks they supply. This could save companies a fortune in inconvenience, training costs and safety results and ensure Directors are not before the courts for manslaughter.
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The best way to select a responsible labour-hire company:
When choosing a labour-hire company you need to be for the following:
ability to train for competency as part of their value proposition – in this era of social responsibility, probably the greatest way a labour-hire company can demonstrate the ability of theirs to deliver competent and trained folks is actually whether they are also an RTO;
regional and industry knowledge – a firm grasp of the industry you work in, its demands and nature, as well the locality;
worker knowledge – an understanding of a worker’s strengths and competency and weaknesses for jobs;
responsiveness – ability to rectify things when they go wrong, such as workers going to the wrong place or perhaps not turning up;
safety and health – working with the client to make sure their workers are actually protected in all working conditions – expect them to visit the place the worker will spend the time of theirs, and conduct an assessment;
feedback – seek to develop a rapport with the workers of theirs and deliver continuous feedback on their performance; For help, guidance or assistance on how you can select a good labour-hire company, reach out.