All you guys see is the money, being a permanent employee will not increase their salary by much, the fact that someone has gone out and foud a place for them to work must count for something?
Why I use labor brokers:
- I have a small consulting firm and I dont have time to perform all the HR functions. I get billed once a month by the labor broker and I pay them happily.
- Employing guys on a permanent basis is risky because I might not have work for them after a few months
- If I get someone that says he/she can do xyz but cant I phone the broker and tell him to GTFO and take his placement with. I cannot afford to sit with an employee that cannot do the job.
- Since I am still new with the whole running a business thing I dont know much about UIF, workmans compensation etc. I need to focus on getting my business running.
- It happens quite often that I only need a specific skill for a few weeks, should I employ someone and then retrench him afterward?
Lets be honest, banning labor brokers will do more harm to SME's than you think.
The argument of "I could earn x% more if I was a perm" does not hold water. I will not pay a permanent employee the same salary as the amount I am paying the broker. I pay a premium for the advantages listed above. Yes I can offer him/her a few ZARS more than what he would earn under the labor broker, but in the long run it would cost me a lot more.