Labour Broker vs. recruitment Agencies

A Labour broker plays an extremely important role in helping companies keep their costs low and at the same time manage their human resources in an efficient way. Many companies are beginning to realize that the human resource is indeed their most vital asset and if not handled properly can quickly affect the performance of a business adversely.


To understand exactly what a labour broker does it may be a good idea to compare them with recruitment agencies.

There are people who do not know the difference between the two but actually there is a distinct difference.

It is hardly surprising that there is so much confusion between what a Labour broker does and what a recruitment agency does because the truth is that both find candidates to fill in positions in companies and organizations. The difference is that a Labour broker does much more than just source candidates and handles all issues related to the person hired including discipline, payroll, interviews and recruitment. In sharp contrast most of the time the recruitment agency’s work ends when they have found a candidate and the person has filled the required position. Admittedly the agency will get a little more involved if the worker they have placed on a site is a temporary worker. This is an important point because temporary worker services are on the rise and judging from the extremely unpredictable business environment of today, this is a service that is bound to rise in popularity in the months and years to come. It is also worth noting that labour brokers can also specialize in supplying temporary workers to companies and organizations.

What are the advantages of using a Labour broker rather than a recruitment agency?

This is a very common question that faces many organizations every day.

While recruitment agencies will already have an existing database of possible candidates to fill a position and will be able to move very quickly to get suitably qualified individuals on a short list to be interviewed by the client organization, a broker on Labour issues will go beyond that to virtually be a human resources manager for the company albeit one who is based outside the premises. What companies like about this kind of arrangement is that the risk of managing staff is transferred outside the company and at the same time they can keep their staff numbers to a minimum. Labour laws are constantly changing in an industry that is undergoing massive changes and upheavals just now. This makes things very difficult for a non-specialist executive at an organization to efficiently manage human resource issues while staying abreast of legislative changes and their impact on the way his organization handles staff. And so a broker is extremely useful in this respect because human resources and everything that goes with it is his specialty.

Another huge advantage that brokers enjoy is that because they are working outside the company, it is very unlikely that their judgement will be clouded by office politics and other considerations that cause many organizations to make mistakes and the wrong decision concerning issues to do with their staff and human resources. Disputes are also less likely because members of staff are well aware that whatever decisions the Labour broker will take on discipline and other issues will tend to be very impartial.