Why You Should Consider Labour Broking
There appears to be an increasing trend in the use of labour broking within African markets, and the onset of COVID 19, which forced some companies to downsize and cut costs has, definitely bolstered a move to more use of temporary workers. While there are a number of advantages to having full time employees where training and information retention is key, for other roles particularly for unskilled labour, broking may be a more optimal option over dealing with the employment processes yourself. So if you are considering labour broking, what are some of the benefits you stand to gain?
Labour broking takes a lot off your organisation’s table when it comes to recruitment. With broking catering specifically to short term employment needs, it means that you are able to cover temporary gaps in labour quickly and without having to go through the entire recruitment process for employees who are only needed for a brief period. A lot of time and resources go into recruitment from advertising the vacancy, to screening, to interviews and contracts, but if the position is not permanent it may not warrant the effort – and this is where labour broking adds value. Brokers will take care of the entire process for you, and in some cases they will have an existing database of eligible candidates, which means it is simply a matter of deploying them where they are needed, therefore, significantly cutting down the time it takes to get more manpower on the ground.
Another key benefit of labour broking is that personnel under such agreements are not considered employees of your company. This allows you to transfer risk to the broker who holds the contract directly with the worker, clearing you of all employer liabilities you would otherwise have to carry if you contracted them yourself. This also gives you a great deal of flexibility around dismissal for poor performance so your company does not have to carry dead weight; though experienced brokers such as Lorimak Africa (a Baker Tilly Network Member) always ensure a good job fit and adequate performance management. Legally, your company is fully protected so any liabilities or disputes are handled by your broker.
Labour broking takes a load off companies’ human resource administration. The cost of managing short term labour can sometimes far outweigh the final benefit and as a business that likely has other core activities that rank higher on the priority list, your limited resources may be better invested elsewhere. Now more than ever, being able to keep costs low, maximise on scarce resources and adapt quickly are key success factors and this also applies to your workforce management. Labour broking allows you to achieve all three of those objectives while also keeping you in the clear legally. You will, however, need to invest in ensuring you find the right broker who understands and can cater to your needs, otherwise the cost of dealing with a labour broker who brings subpar talent could end up amounting to more than the cost of managing the processes yourself. But the good news is, if you are reading this post then you have already found your solution, visit the Lorimak Africa website to get started, and access the labour broking expertise you deserve.