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March 21, 2023 Comments (0)

Agency vs. In-House Recruitment: Labour Hire Cost and Wins for Your Business

Two primary methodologies when filling staffing needs are in-house recruitment and agency or labour recruitment services. Organizations need to consider carefully these options to decide which best fits their specific needs. This article will define and compare the two methodologies to help companies in New Zealand decide on which option to choose.

What is In-house Recruitment?

In-house recruitment is a staffing approach that enables organizations to fill job openings by promoting or reassigning existing employees to new roles. This strategy eliminates the need for external recruitment and training because internal talent is utilized instead. By providing opportunities for career growth and professional development, in-house recruitment can boost employee morale and retention rates.

Moreover, it can be a cost-effective and efficient way for businesses to fill job openings while leveraging the skills and expertise of their current workforce. The human resources department of the company is responsible for managing the process of hiring within the company, which involves finding suitable candidates and ensuring a smooth transition for new employees.

What is Labour Agency Recruitment?

The labour agency manages the recruitment, screening, hiring, and compensation of the workers, relieving organizations of these tasks. Through labour agencies, businesses can access a pool of workers without the need to hire personally and manage them. This can be beneficial for businesses with fluctuating staffing needs or those requiring specialized skills for specific projects or assignments.

Recruitment agencies can also provide valuable guidance and advice to businesses on various aspects of the hiring process, such as negotiating wages, preparing employment contracts, and complying with legal requirements. This can help businesses make informed decisions and attract top talent, leading to better recruitment and retention outcomes.

Additionally, labour agencies can help organizations avoid the costs and risks associated with direct hiring, such as employee benefits and training expenses.

Agency vs. In-House Recruitment: Key Differences

When to Hire a Labour Agency

It is important for organizations to comprehend the differences between in-house hiring and hiring through labour agencies to determine the most effective and efficient method for filling open positions. This can be achieved by analyzing the areas where these methods differ.

Source of Talent. For in-house recruitment, organizations use their internal talent pool to fill job vacancies, meaning they promote or transfer existing employees to open positions. Meanwhile, labour agencies provide external workers to businesses to fill their job openings.

Hiring Process. In internal hiring, the HR department of a company takes care of all aspects of the recruitment process, from identifying potential candidates to onboarding new hires. In contrast, staffing agencies handle the recruitment, screening, and management of temporary workers.

Cost. Internal recruitment can be a cost-effective method for meeting long-term staffing needs, while labour agencies are typically more expensive than internal hiring. However, when it comes to temporary staffing needs that require skilled individuals, labour agencies can be more cost-effective.

Time. Internal recruitment can be a slower process since it involves promoting or transferring existing employees. In contrast, labour agencies provide a faster and more convenient solution to staffing needs, as they have a pool of employees readily available for deployment.

Management. Employees hired through internal recruitment are managed more directly since they are part of the company’s workforce. On the other hand, labour agency employees are supervised by the staffing firm, which relieves the business of direct management responsibilities.

When to Hire a Labour Agency

When a company needs to fill a workforce gap or requires specific expertise for certain projects or tasks, they may consider working with a staffing agency. Staffing agencies can provide temporary workers to address sudden increases in demand without incurring the costs associated with permanent hiring and training.

Similarly, businesses can utilize staffing agencies to provide workers with the necessary skills that they do not already have in-house. Staffing agencies can also be helpful for companies that require flexible personnel, such as seasonal businesses or those with fluctuating demand.

In addition, hiring an employment services company has its advantages:

1. Expertise. Recruitment agencies possess the expertise and knowledge to identify and recruit suitable candidates for various job positions. They are well-informed about the latest recruitment practices and have access to a vast talent pool that may not be easily accessible through traditional job postings.

2. Timesaving. Recruitment agencies manage the complete employment process, which includes finding suitable candidates, screening them, and conducting interviews. As a result, businesses can focus on their primary activities and save time and resources.

3. Cost-effective. Although utilizing a recruitment agency has fees, it may be more cost-effective than having an internal recruitment team. Companies can save money by using recruitment agencies to handle the costs of training, background checks, and job advertisements.

4. Flexibility. Businesses can receive temporary and contract staffing solutions from recruitment services that can be tailored to fit their changing needs. This might be especially helpful for companies whose employment requirements change frequently.

5. Improved quality of hires. Labour hire services can assist organizations in attracting and retaining qualified candidates since they have expertise in spotting outstanding talent. This may result in better productivity, lower turnover, and higher profitability.

And most importantly, you must consider whether the company adheres to ethical recruitment processes to avoid employment problems in the future.

Staffhouse: A Trusted Manpower Agency in the Philippines

Companies based in New Zealand can rely on Staffhouse International Resources, a trusted manpower agency in the Philippines that bridges job seekers with New Zealand employers looking to hire for their skills.

Staffhouse is an accredited labour hire company in New Zealand, Australia, Canada, Saudia Arabia, and more. Remember that it is essential to work with an accredited labour agency, especially in countries like New Zealand to ensure compliance with labour laws, fair treatment of workers, and clear employment agreements, and to minimize the risk of sudden labour shortages.

New Zealand labour hire hopefuls whom Staffhouse accommodates come from a vast range of industries like construction, manufacturing, healthcare, hospitality, retail, and agriculture.

Staffhouse International Resources’ recruitment process comprises a seamless pre-recruitment stage that benefits employees and employers. Our four-step recruitment process involves:

● Recruitment plan approval
● Sourcing and shortlisting of candidates
● Client interview and selection
● Job offer negotiation and acceptance

Read our blog to know more: Recruitment Process: Basic Steps in Hiring Top Applicants. You may also contact us via our website, email, or Facebook and LinkedIn pages today to learn the best recruitment service for you!