13 Mar Labour Hire vs. Direct Employment – Which Saves You More?

Labour Hire vs Direct Employement

When planning workforce solutions for construction projects, businesses often weigh the costs of hiring through a labour hire agency vs. direct employment. While both have advantages, understanding the financial and operational implications can help you make the right choice. In this post we’ll breakdown the differences between labour hire vs direct employment so you can get an idea of which save you more.

Direct Employment: Costs and Considerations

Hiring full-time employees means taking on additional responsibilities beyond wages. These include:

• Superannuation and payroll tax
• Workers’ compensation insurance
• Training and onboarding costs
• Managing leave entitlements
• HR administration and compliance

Labour Hire: A Cost-Effective Alternative?

Labour hire companies provide skilled labourers on demand, reducing the financial and administrative burden of direct employment. Here’s why it can be the more cost-effective option:

• No Long-Term Commitment: Pay only for the workers you need when you need them.
• Reduced Overheads: The labour hire company handles payroll tax, superannuation insurance, administration and compliance.
• Faster Hiring Process: No lengthy recruitment procedures – workers are pre-screened and ready to start asap.
• Scalability: Adjust your workforce size according to project demands.

Making the Right Labour Choice

If you require a flexible, skilled workforce without the administrative burden, using HLH Group for your labour hire can be the smarter financial decision. However, for long-term, specialized roles, direct employment may still be the best option. The key is to evaluate your project’s unique needs and costs to determine the most efficient staffing strategy. We also have a temp to perm option where you can take workers on initially through labour hire but once you know you want them directly on your books, we can transition them across.

If you would like to hear more about our temp to perm recruitment options or get a copy of our labour hire rates schedule please call HLH Group on 02-89852019 or contact us online today.