Office 1, 122B Belmore Road, Randwick, Sydney, NSW 2031

What’s the difference between a recruitment company and a labour hire company?

When you’re running a business you will often find yourself in the position that you need to fill roles within your businesWord Cloud "Recruitment"s to increase productivity and profitability. Depending on your businesses hiring capabilities you may decide to outsource the recruiting of your new role to an agency. But what is the difference between a recruitment company and a labour hire company? And ultimately, which one should you be using to recruit your new team member?


What’s a recruitment agency?

A recruitment agency in a nutshell matches candidates looking for employment with companies looking that have suitable roles for them. The recruitment agency will take a job brief from their client, source a suitable candidate from their database or externally, and then present suitable candidates to the company. Once the company has selected a suitable candidate, the company will then employ that candidate directly and the recruitment company will take a finders fee.


What is a labour hire agency?

A labour hire agency in a nutshell finds employers suitable candidates for the positions advertised, and fulfil these roles. The candidates, although working for the company seeking the candidate, will actually be employed by the labour hire agency, not the company they are completing work for. This is part of a labour hire agreement. The labour hire agency will fulfil wages, superannuation contributions etc. and essentially send the candidate to work for the company.


What is the difference between the two?

The main difference between the two is that a recruitment agency will find an employee for a company, and once a suitable employee is found and employed by the company, that is the end of their involvement. A labour hire agency will find an employee for a company, but the relationship will last as long as the company requires the skills/services of the employee, as the labour hire agency will manage the employee, fulfil wages etc.


Which is the best option for me?

The type of agency you decide to use to recruit your new employees will depend entirely on your business needs; for example do you require a candidate for a short term project? You may be better served using a labour hire agency who can quickly and easily provide you with a suitable candidate (and replacement candidates if you are not satisfied with the initial candidate), which will save you time and money. If you are looking to build a reliable team that you can train with the view that they can progress and grow through the company, you may be better suited to using a recruitment agency.


Is there a company that does both and can help me understand what I need?

The answer is yes; BriX Projects are construction recruitment specialists, for both permanent roles (fulfilling the role of a traditional recruitment agency) and short-term employment i.e. labour hire. We found that by combining both we can better assist our clients in finding the best possible workforce for their business or project, whether it be a short term project that requires a large number of workers to ensure it hits deadlines, or a long-term project that requires a dedicated full time member of staff.

If you would like to know more about your options and what would be the best solution for your project or business then contact our team at BriX Projects today or give us a call and we will be able to guide you to the option that is best for you.

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