How To Start A Labour Broker Business In South Africa
What is a Labour Broker?
Labour brokering is a South African term for a form outsourcing practiced in which companies contract labour brokers to provide them with casual labour.
How To Start A Labour Broker Business In South Africa
1.Understand your skills
You need to have a certain set of skills to be a labour hire recruiter. It is essential that you understand what kind of employees your clients are looking for. A labour hire recruiter should have a good attention to detail and time management skills. They should also be patient and have good listening skills. Moreover, they need to have excellent communication skills and relationship building skills. All of these characteristics will allow them to recruit the right people for their clients.
2.Differentiate yourself from other labour hire companies
Try and provide labour hire for different types of businesses. This will make your company appealing for a range of different clients. Therefore, your chances of prosperity and profit increases. Moreover, you will receive a competitive advantage over other companies. Clients are more likely to go with someone who has more experience in different fields.
3.Mission and vision
It is important to devise a mission and a vision for your company. Having a goal and objective will make it easier for you to establish a business strategy. This will show your clients that you are trustworthy and there to serve them. Moreover, it makes your business seem more genuine and one which will satisfy their clients’ needs.
4.Identifying potential clients
You should identify who you want as your potential clients. Keeping a broad range is more beneficial to your business. However, it might be easier to start small and keep growing. Keep in mind that you are hiring labour for another company. Therefore, who you hire should match the other company’s needs.
5.Analyse your competitors
There are many labour hire companies out there. Therefore, you should study the actions of your competitors. Doing this will help you develop ways of improving and innovating your recruitment services. Using the successes and failures of other labour-hire companies will help you develop your own.
6.Pricing and the law
Your prices should always reflect the amount of work you do. Clients want to see some value for money. Moreover, they don’t want to feel like they are paying for something they could easily do themselves. Furthermore, you should register your business and apply for a trademark to protect your services. Getting insurance can also help in case something goes wrong.
Frequently Asked Questions (FAQs).
How much do Labour brokers charge in South Africa?
We have assumed a company with 200 TES workers currently and assumed a current labour broking fee of between 10% and 15% of payroll. For a more detailed overview the table below illustrates the key assumptions and working for each element.
Is Labour broking illegal in South Africa?
The amendments did not ban labour brokering, they instead strengthened the regulations to provide greater protection for workers placed in temporary employment services.
How do Labour brokers work in South Africa?
A labour broker (or Temporary Employment Service) is a person or company that provides labourers to client companies on a temporary basis. The workers work at the client company site, but are the employees of the labour broker, not the client.
How do Labour brokers work in South Africa?
A labour broker is any natural person who conducts or carriers on any business whereby such person for reward provides a client of such business with other persons to render a service or perform work for such client, or procures such other persons for the client, for which services or work such other persons are.
Why do companies use Labour brokers in South Africa?
Labour broking is more inclined towards temporary or casual employment. Outsourcing creates fixed-term or permanent employment, and employees are entitled to the benefits and full protection under the Labour Relations Act. The dissimilarities between outsourcing and labour broking have often been misinterpreted.
What is Labour outsourcing in South Africa?
From the perspective of enterprise management, labour outsourcing refers to the type of work where enterprises have certain work finished by the labour force provided by external service provider, so as to lower cost, promote efficiency and enhance competitiveness.
What is a labour broker and why does Labour unions want these brokers to be banned in South Africa?
Labour brokering allows employers to evade their obligations as stipulated in the LRA. This is tantamount to outsourcing labour relations to a third party. 9. Workers under labour brokers are unable to enforce their rights against any party that may be identified legally as the employer.
How do I become a Labour broker in South Africa?
These requirements include that the agency comply with all labour laws, has a verifiable physical business address, proof that the agency is registered with the Companies and Intellectual Property Commission (CIPC), proof of tax clearance certificate, proof that the agency is registered with a bargaining council.
What is a Labour broker temporary employment service yes in South Africa?
A TES employee is assigned to a client to perform a category of work which is determined to be a temporary service by a collective agreement concluded in a bargaining council, a sectoral determination or a notice published in the Government Gazette by the Minister of Labour.
What does the Department of labour do in South Africa?
Regulate the South Africa labour market for a sustainable economy through: Appropriate legislation and regulations. Inspection, compliance monitoring and enforcement. Protection of human rights.