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Whether you choose a conventional hiring method or use a reputable skilled labor hire firm, there will be costs involved.
For a traditional route, you’ll need to cover the cost of advertising, the cost of your time looking through applications and interviewing people, and the cost of training the new employee.
It can make hiring a new employee an expensive and time-consuming process. However, on the face of it, using a labor hire company is more expensive.
If you hire on a temporary basis then the hourly rate you pay to the hiring company will be more than the employee gets, because the hire company needs to make a profit.
Alternatively, if you decide to take someone on, you’ll find that there is a charge for finding the employee, this can run into several thousand.
In short, it would appear that it is much more expensive to use a labor hire company.
But, there are a number of benefits attached to labor hire firms:
Time-Saving
Have you ever stopped to consider what your time is worth? If you’re the one that propels the business forward it’s difficult to put a price on your time. But, if you now that every hour of your time creates a fixed amount for the business, you’ll be able to add this into the equation when calculating the cost of using a labor hire firm.
Hiring the traditional way can take hours of creating advertisements, scanning applications, and interviewing potential candidates. Multiply the number of hours this takes by the number of funds you could earn and you’ll start to see just how expensive the traditional route is, or how cost-effective a labor hire firm is.
Skill Set
It’s also worth remembering that a skilled labor hire firm will provide you with a worker that knows what they are doing. Although they may need to understand the nuances of your particular company, they will already know how to do the job, dramatically reducing the amount of time you need to spend training.
Flexibility
Once you hire an employee you’ll need to go through due process to get rid of them, no matter how bad they turn out to be. This isn’t an issue with a labor hire firm if you don’t like the employee or they can’t do the job you simply request a different one for the next shift. It’s that easy!
Absence
When an employee works for a labor hire firm you’re actually hiring the firm to supply you with labor. This means if an employee is sick the labor hire firm is responsible for supplying you with a suitable alternative, preventing you from having any downtime at work.
That can make a huge difference to your productivity.
Don’t forget that the same applies to holidays, anyone working through a labor hire firm can take a holiday and the firm has to continue supplying you with a suitably qualified worker. That’s less downtime and more productivity for you and your business.