Permanent Staff vs Labour Hire: What’s Best for Trades Recruitment?

Choosing Between Labour Hire and Permanent Staff for Trades

If you're hiring tradespeople whether HVAC techs, plumbers, electricians, or fitters one of the most important decisions is how to bring them into your business:

Should you hire them as permanent employees, or use a labour hire agency to fill the role?

Both models are common across Australia, but they serve very different needs. The wrong choice can cost your business time, money, and productivity. This guide breaks down the pros and cons of each so you can make the best choice for your next hire.

What is Labour Hire?

Labour hire involves bringing in workers on a temporary basis through an external provider. The labour hire agency is the legal employer and handles all payroll, tax, and insurances. You simply pay an hourly rate and direct the worker’s day-to-day tasks on site.

Pros of Labour Hire

Labour hire is often used when businesses need flexibility. The main benefits include:

Fast access to available trades
No long-term commitment
All payroll and admin handled by the agency
Easy to scale your workforce up or down as needed

Cons of Labour Hire

The convenience of labour hire comes at a cost. Challenges include:

Higher hourly rates (often 20–30% more than hiring directly)
Lower loyalty and engagement from the worker
Quality can vary depending on the provider
Harder to build strong culture or long-term teams

What is Permanent Recruitment?

Permanent recruitment means hiring a tradesperson directly into your team as a full-time employee. You manage payroll, onboarding, and compliance — but you also gain long-term value and commitment.

At HJ Recruitment, we specialise in placing permanent, pre-vetted tradespeople into Australian businesses.

Pros of Permanent Recruitment

Lower hourly cost compared to labour hire
Greater loyalty, stability, and ownership
Stronger safety outcomes and team culture
Long-term productivity and reduced turnover
You choose the person, not just the skillset

Cons of Permanent Recruitment

Slightly longer time to hire
Involves managing your own payroll and HR obligations
May require a recruitment fee if using an agency
Less flexible for very short-term or project-specific roles

When Should You Use Labour Hire?

Labour hire can be the right option when:

You need someone urgently for a short-term gap
The project is seasonal or time-limited
You're not ready to commit to a full-time hire
You want the least amount of admin
You're testing the role before hiring permanently

When Should You Use Permanent Recruitment?

Permanent recruitment makes sense when:

You want to reduce long-term costs
You're building a stable, high-performing team
You want to improve staff loyalty and retention
The role is ongoing or business-critical
You're tired of constant rehiring or quality issues

A Real-World Example

Let’s say you need an HVAC technician for the next 12 months. Labour hire might cost $85 per hour. Hiring someone permanently at $62 per hour plus super and other costs might bring the true cost to $75–$80 per hour. While both options work, the permanent hire is more cost-effective and will likely be more loyal and productive.

Even with a recruitment fee upfront, most businesses recoup their investment within a few months through better reliability, less downtime, and fewer replacement issues.

What We Recommend at HJ Recruitment

For most trade-based roles, permanent recruitment provides better value, stronger culture, and higher retention. We only recommend labour hire when roles are genuinely short-term, unpredictable, or time-critical.

If you want to build a high-performing team, permanent placement is usually the smarter long-term play.

Ready to Hire the Right Way?

At HJ Recruitment, we help companies across Australia hire skilled tradespeople quickly with options for both permanent placements and short-term labour when needed.

We place electricians, plumbers, HVAC technicians, mechanical fitters, and more into roles across Perth, Brisbane, Sydney, Melbourne, and regional locations.

To speak with a recruitment specialist, visit www.hjrecruitment.com.au/contact

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