How do staffing agencies make money?

2022-08-17 18:00:01

We might not knowHuman resource dispatchThere are actually several types of companies. Unofficial human resources dispatch companies are shady intermediaries that earn commissions through scams and fraud, so let's not discuss that for now. Today, let's talk about standardized human resource dispatch companies. Legitimate human resources dispatch companies may have surplus forms depending on their nature.


The company has its own human resources dispatch company


Some large state-owned and central enterprises, due to wage and staffing constraints, cannot hire permanent workers. Due to high labor demand, they simply set up their own human resources dispatch companies to hire and handle labor arrangements. These human resources dispatch companies actually serve enterprises in a targeted manner, primarily relying on surplus handling fees. They don't care about surpluses; their purpose is to serve the company. Many large central enterprises adopt this model, which actually benefits labor workers. It is handled formally and generally does not deduct labor fees.

A mall-style human resources dispatch company


There are also purely mall-style labor service companies. There are many human resources service companies on the city's streets, including labor service companies and outsourcing companies. These HR companies have broad plans and serve many enterprises, such as those specifically serving foreign enterprises, small and medium-sized enterprises, and internet companies. In fact, it is a large labor service company (labor capacity and talent export), much like a large manpower agency. Serving as a bridge between labor capacity and the enterprise. The primary form of surplus is earning processing fees for hiring agents for enterprises. Because the company is relatively large, it also pursues diversified operations, such as file management and talent consulting.


A legitimate and legal labor dispatch company acts as an intermediary in the labor power market. That is, when the employer has demand and labor power demand, through introductions by the human resources dispatch company, both parties can combine supply and demand. More directly,Human resource dispatchCompanies use the information they hold to provide employers and workers with information about their needs, while human resources dispatch companies charge a certain handling fee from such services to achieve profitability. Currently, legitimate human resource dispatch companies can not only be considered to provide labor force information to domestic employers, but also to foreign companies. Many foreign companies also come to China to recruit workers through labor dispatch agencies, such as some German companies that frequently come to China to recruit workers. At the same time, Chinese embassies, dispatched agencies, and companies investing or constructing abroad often recruit workers domestically through human resources dispatch companies, then send many people abroad to work for relatively high pay.


Because employers have an increasingly broad scope of employment, their requirements for human resource dispatch companies are also rising. Unqualified labor service companies that have not received legal approval easily exploit policy loopholes to engage in illegal human resource dispatch activities, and once conflicts arise, they have no ability or means to help workers resolve them. Therefore, employers and workers must pay close attention and never fall for these companies' tricks. Instead, you should do your best to hire legitimate and legitimate human resources dispatch companies to hire workers and find employers to avoid being scammed.


Regarding the form of surplus for human resources dispatch companies


Traditional HR companies handle tasks such as agency recruitment (job placement), human resources dispatch, headhunting, and talent marketplaces; The primary source of income for these matters comes from collecting service fees for clients (enterprises);


Let's analyze the operational forms and revenue of each transaction:


(1) Acting recruitment: for each person hired by the company, the company will pay a fixed recruitment service fee; If an introduction fee is charged to workers, the fee regulations shall be formulated independently by each locality;


(2) Human resource dispatch primarily relies on volume. The monthly handling fees companies pay per person to the agency are quite risky, primarily due to legal risks in employment and work injury risks; Labor dispatch companies must not charge labor dispatch workers fees; There are also fully hazardous outsourced hourly work models.


(3) Headhunting relies on connections to attract high-end talent for companies. Employers pay a headhunting fee to the headhunting company, usually 20%-30% of the first year's salary of the recruited talent;


(4) The form of surplus in talent malls is relatively simple: holding on-site job fairs, collecting booth fees from recruiting companies and ticket fees from job seekers. In recent years, the recruitment effectiveness of talent malls has been declining, and more and more malls are choosing to transform and operateHuman resource dispatchor conducting online recruitment, replacing traditional talent mall recruitment services;


(5) Social security. Full social security processing fees are provided, and local special policies are used to make up for the social security difference. For example, in Chongqing, if there are struggling enterprises, the social insurance contribution base is 1800, so each person can save 500 each month, and paying social insurance for employees can earn another 500 yuan in profit, which is relatively stable.