Labour Hire vs Permanent Staff: What’s Right for Your Trade Business?

Labour Hire vs Permanent Staff: What’s Right for Your Trade Business?

If you run a trade-based business in Australia, chances are you’ve hit this hiring question more than once:

Do I bring someone on full-time or just get labour hire to cover it?

It’s a common fork in the road for businesses in construction, HVAC, manufacturing, and electrical industries. But it’s not always a clear choice and getting it wrong can cost you time, money, and team morale.

Let’s break it down simply: what’s the difference, when to use which, and how to build the right team for the work ahead.

First, What’s the Difference?

Labour hire = You “rent” a worker from an agency for a short or long period. The agency handles the payroll, admin, super, and HR.

Permanent recruitment = You hire someone directly into your business. You’re responsible for their wages, entitlements, and ongoing employment.

Both have their place depending on what you need.

The Pros of Labour Hire

Fast placements - Great when you need someone yesterday
No admin - We handle timesheets, tax, super, and insurance
Flexibility - Scale your crew up or down based on workload
Lower upfront cost - You only pay for hours worked
Trial without commitment - You can test someone out before offering a role

Best for:

  • Short-term projects or shutdowns
  • Filling in for staff on leave
  • Trialling new roles or team setups
  • Seasonal work spikes

The Pros of Permanent Recruitment

Team stability - Helps build culture and reduce turnover
More ownership - Full-time staff are often more invested
Long-term productivity - Training pays off over time
Stronger loyalty - Candidates often prefer permanent jobs
Cost-effective long-term - Avoids ongoing agency fees

Best for:

  • Core trades roles (e.g. lead electricians, supervisors)
  • Long-term project continuity
  • Roles with heavy onboarding/training
  • Building a committed internal team

When Labour Hire Makes Sense (Real Example)

A national HVAC company in WA was awarded a large-scale install job across four sites. They needed 10 extra workers for 3 months but didn’t want to commit to full-time hires just yet.

We provided qualified labour hire technicians within 72 hours trade-tested, ticketed, and insured. The client scaled their workforce quickly and completed the contract on time. Once the job wrapped, no layoffs or complications.

When Permanent Recruitment Is Better

A manufacturing client in Adelaide needed a full-time mechanical fitter to lead their maintenance program. This wasn’t a short-term job they needed someone invested, long-term, and aligned with their culture.

We recruited a candidate through our perm channel, who’s now been with them over a year and recently trained two new apprentices.

So… Which One Should You Choose?

Here’s the truth: you don’t have to choose just one.

The smartest businesses use both models strategically.

  • Labour hire for spikes, special projects, or short gaps
  • Permanent hires for core, long-term roles

The key is knowing when to switch between the two and working with a recruiter who can deliver both, fast.

Let’s Build the Right Team for Your Business

At HJ Recruitment, we don’t push one model over the other.
We’ll give you honest advice, based on your workload, budget, and growth goals and then deliver people who fit.

Want to know more about how we work? Check out our About page or explore our Permanent Recruitment and Labour Hire services.