Managed Service – Contract Labour Hire
Welcome to our Managed Services section, here you will find information relating to contract labour hire. If you have any question or queries, feel free to call our helpdesk on 0044 (0) 2079890750.
Historically, there’s a direct relationship between an employee and the employer. However due to challenges faced by modern businesses we are seeing alternative staffing strategies brought to the marketplace, these include:
- Flat/Fixed Fee Recruitment
- Outsourced Labour
- Contract labour hire
At Skills Provision we like to keep things simple, we provide a managed solution based around contract labour hire, the benefits of our system are illustrated in the following examples:
A separate workforce out of your control may avoid union issues. In multinational manufacturing organisations, the regular workers are often unionised, their salaries are high and it can be difficult to motivate to increase productivity. Taking disciplinary action for misconduct or terminating services is often a lengthy and costly process.
In IT companies, brand image of the employer is important. High salaries and continuous employment are very important to attract and retain talented people. Work undertaken in IT can often be short term, intermittent and lacking continuity. Employers therefore hire the software engineers through the contractor for shorter periods and sometimes lower salaries; they are employees of the contractor. Many IT companies have more contract employees than regular employees.
In research and development organisations, the projects are tenure-based and thereafter, the organisation may not get another project or they may get a project requiring a different skill set. Hence, this sector prefers contract labour hire.
Reduces hiring risks. A try before you buy incubator. Human Resource Department techniques are often failing to produce intended results. In other words, all those who are doing well in aptitude tests and interview at the time of selection are not found to be good performers on the job. Many organisations prefer to engage the services of contract employees, watch them on the job for one to two years both for high performance and good behaviour and thereafter, might consider employing them on company roles, by paying either no fee or a lower fee to the contractor.
The advantages to the employer are:
- Contract workers are generally not unionised. Industrial disputes are minimal, if there is indiscipline, they can be sent home immediately by informing the contractor, if there is excess workforce due to economic recession their services can be adjusted more quickly by informing the contractor but a reasonable notice period is generally included.
- Contract employees respond positively to incentive schemes since their salaries are low. Contract employees cannot compromise on productivity, quality, and good behaviour since continuance of their services depend upon these factors. We always advocate a bonus arrangement linked to agreed Key Performance indicators that are bespoke to individual contract needs
Skills Provision supply a recruitment service which is truly helping Employers maintain flexibility to meet day to day business needs. If you would like to discuss our Managed Services offering please call 0044 (0) 2079890750 today.