• John Macedo

Your Labour Supplier Only Sends You Bad Workers? Here is why.

Updated: Jul 28


A Labour Hire Company’s main goal is to allocate workers. What comes second, is the importance of having a proper Human Resources department.

When it comes to Labour hire companies, their HR department is typically below average due to the fact that they tend to want to leave the labour hire company in the future for a more consistent job as soon as they can. The reason for this is due to the low opportunities for growth within a labour hire company that frustrates the workers.


LABOUR HIRE EXPLAINED

A labour hire company has a pool of good workers. It then supplies these construction workers to you as a client on a causal or per-project basis. Most of the time, the Labour Hire company do not need workers full time.

▶️The clients are typically happy due to the fact that they always have good workers regularly available whenever they need them.

Workers are happy due to the fact that they have jobs, both full time, and on a per-project basis, based on the individual employee, a project that they would not have without the company. Everyone is happy in this equation, or at least that is what it sounds like on paper.

Many companies, throughout time, have used labour suppliers in order to make their lives a little bit easier.

Labour hire companies typically act as an reagular employer. Their job is to find the workers, interview them, and send them your way through a direct way. In exchange for these services, you are the host employer and can pay the agency a fixed fee. This fee includes taxes, insurance, statutory charges and miscellaneous fees. The goal of this company is to get you the skilled workforce you require, without you manually having to seek out each and every worker individually.

When a labour supplier does things right, you get great flexibility, no commitment, one-off assignments, unattached HR and unattached payroll and administration.

All staff questions and issues are handled by the agency. The agency files all of the paperwork, and the labour forcewill go to them for any payment questions. You just need to handle paying the agency itself, which streamlines things tremendously on your end.

If you are a small, or a large company, agencies like these allow you to plan any type of workforce you require. If your company is having a bad week, you need to inform the agency that you do not need as many workers, and they will place more people on call. This way you will not have to waste money on labour you do not require.

However, if you have a smaller company and want to expand, agencies like these allow you to grow at an instant. Big contracts can come instantly, and you will have a labour work force ready to go in no time. This allows even the smallest companies to plan for big contracts, investments, and expansions to their business plans.

WHAT SOME LABOUR HIRE COMPANIES DO WRONG

When the Human Resources department does its job well, and the communication aspect of the company is as clear as possible, allocators know where the worker's ambitions are.

This in turn allows them to tailor the workers towards each individual client and company’s requirements and necessities, beyond what is expressed in the work orders themselves.

A great allocator is a problem solver and a creator for future opportunities, both in terms of the worker, and the relationship built with the company who requires the services offered by a labour hire company.

✅ This can only be achieved if the relationship between all parties is healthy and maintained on a consistent basis.

As we move forward, we have to discuss something known as inconsistency weakness.

The Inconsistency Weakness

This is caused by moving workers between clients on intervals which are regular, or in other words, moving them from one place to another too quickly for them to adapt and feel comfortable.

This gives an advantage to labour hire companies, as the workers can work for many different companies, scan for all of the possible opportunities within these clients and trades and come back with that information.

This is excellent, as they can try just about everything before choosing a trade to pursue, however, this is only the case if you meet an allocator that is extremely interested in helping you.

What You Can Do About All of This


You can start moving the wheels. In other words, you can ask your allocator to find workers that might actually be interested, and will genuinely enjoy working the position you can provide them with, within your company. Another thing you can mention is the fact that you are seeking ambitious workers who are willing to learn, and potentially, over time, master your trade.

To do this efficiently, you have to go beyond asking for workers with skills and experience. You need to ask for workers with passion and ambition.

You will find that inspired and ambitious people work and perform better than even the most experienced ones, and best of all, if they are new, yet ambitious, they might even cost you less on an hourly basis, saving you a lot of money and increasing your profit margins in the process.

▶️ While at first, a labour agency might seem like it charges a lot for work that you could do internally, when you boil down the time commitment, stress, and costs associated with handling everything yourself, it is quite clear that you are getting much more out a the agency when compared to the small added cost associated with hiring one.

IS IT A GOOD DEAL?

When it comes to the actual numbers, the best way to test this is to identify the weaknesses on the labour hire you are currently using and seeing how much time, money, and effort in the form of paperwork it takes you to handle that workload. Then try using a labour agency to do all of the work for you. If you come to the conclusion that the added costs associated with choosing the right labour agency is worth having the extra time to think about progressing the business further, instead of worrying about the workers, then this might be the perfect solution for you.


Does this sound too hard to do by yourself? The other option is to try another supplier.

Just because you have had one bad experience with a bad labour agency, does not imply or mean that all of them are that way, you just got unlucky.

However, you can turn the tides, and hire an agency that knows what they are doing, with an exemplary HR department, who can provide you with workers that have a genuine passion towards working within your company, and can easily adapt and over time, master your trade. That is where we come in. We only need one shot to show it how and what can be done for you and your business, and help you find the perfect, most ambitious, and most passionate workers for your specific trade and business.


TAKE-HOME POINTS

▶️ Make sure your Labour Supplier is sending you Interested/Committed workers that fit the role.

▶️ They must REALLY understand your business and what skills/personality types fit best the type of trade you're in. ▶️ Your Labour Hire Company should have a great relationship with their workers as well as with you. ▶️ Check if the cost/benefit is paying off also considering subjective items like stress, re-work and communication.


A FREE Bonus for you ◀️

From years of experience dealing with people in the construction industry (Workers - Foremans - Project managers), We've noticed that most of the problems happen due to lack of communication skills.

👉 We wrote our own Delegation Manual that gives you a 5-step-guide that will end it once and for all.

Your labourers and tradies will

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JOHN MACEDO

Founder and Director.
I believe together we can create a "people first" Australian Construction Industry 

Call me to discuss

your labour hire needs