Pros And Cons Of Skilled Labour Hire

Economists divide the dynamics of creation into four categories which are land, labour, capital and entrepreneurship. In today’s article, we are going to point out the second most important factor of production, that is labour. Labour includes both physical and mental work that is undertaken for some monetary reward…

Labour can be of various types: physical and mental labour, skilled and unskilled labour and productive and unproductive labour.

• Physical and Mental labour– Any kind of work in which physical labour is more important than mental labour is categorized under physical labour.
  For example, the work of a porter or a mason is that of physical labour. Mental labour, on the other hand, involves the brain. For example, the work of an advocate or a teacher is that of mental labour.
• Skilled and Unskilled labour– Skilled labour involves training, knowledge, learning and high efficiency. For example, the work of engineers, doctors, teachers and scientists is considered to be skilled labour. Unskilled labour does not require training and knowledge.
  For example, the work of porters and rickshaw pullers is said to be unskilled labour.
• Productive and Unproductive labour– Productive labour adds net value to the product while unproductive labour doesn’t..

Hiring  skilled labours:

 Labour hiring is the concept of outsourcing a company’s recruitment process to a labour-hire agency. They conduct the whole hiring process from payroll to payment of tax.

They also ensure that the client company receives the best-skilled workers who meet the expectations of the client company.

The process of skilled labour-hire is mainly taken over by the hiring agency. The hiring agency is the employer of the workers and they lease them to the client company for a specified fee.

Advantages of hiring skilled labour:

• Sometimes a company may observe a shortage of labour, especially during the peak seasons.
  Companies use skilled labour-hire under these circumstances to reduce the workload on the existing permanent employees in companies.

  Moreover, the workers from the labour-hire agency can be hired for a stipulated period and the client company has no responsibility thereafter.

• The skilled labour-hire agencies supply highly skilled employees according to the expectations of the client company. The client company does not need to undertake the training of the employee as the labour-hire agency is already supplying highly skilled and trained employees.
• The recruitment of skilled workers such as teachers and engineers require a huge process such as advertising, checking CVs, interviewing and choosing the best employees.
  If you give the entire responsibility of recruitment to the skilled labour-hire agency, your time and energy get saved and you get top-notch skilled workers easily.
• Labour hire reduces the costs associated with the hiring process. The process of skilled labour-hire cuts down on the number of steps involved in hiring skilled employees.
  The temporary worker is an employee of the labour-hire agency, so all the expenses associated with them is the agent’s responsibility.

 Disadvantages of skilled labour-hire:

• Sometimes, an employee hired through a labour-hire agency can leave the company in between and switch to another company.  This can be harmful to the client company as well as the agency.
• Many times, a skilled employee hired through a labour-hire agency, may be inefficient and untrained. It can create problems for the hiring agency as well as the client company because they must deal with an inefficient employee.Therefore, scrutinizing the labours is highly essential before hiring any employee.

The above article is an overview of the advantages and disadvantages of skilled labour hire. You can go through the article if you want to employ skilled employees through a labour-hire agency.