Interestingly, starting a labour hire business in Australia is not too expensive except for the money required to rent and furnish an office space, acquire the relevant license and permits et al. Running this type of business requires that you should be trained as a human resource person and it is indeed a very lucrative business in Australia because of the growing economy and activities in several industries.
If you have decided to start a labour hire business in Australia, then you must make sure that you carry out thorough feasibility studies and market survey. This will enable you to locate the business in a community or city with the right demographic composition; a location that can readily accept your services.
Business plan is yet another very important business document that you should not take for granted when launching your labour hire business. Below is a sample labour hire business plan template for Australia that will help you successfully launch your own.
A Sample Labour Hire Business Plan Template for Australia
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Services
- 4. Our Mission & Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Publicity and Advertising Strategy
- 11. Sources of Income
- 12. Sales Forecast
- 13. Our Pricing Strategy
- 14. Financial Projections and Costing
1. Industry Overview
Labour hire businesses falls under the Temporary Staff Services Industry and firms in this industry provide temporary staff to clients on a fee or contract basis. Temporary staff provided by industry firms work for clients at their respective work sites, but remain legally employed by the temporary staff provider. This also means that temporary staff are paid by the industry firm.
The Temporary Staff Services industry provides skilled and unskilled labour to client companies, typically on a short-term basis. Various factors influence demand for staffing services. For example, the national unemployment rate affects industry demand, with lower unemployment generally contributing to greater demand for temporary staff.
Additionally, greater business outsourcing positively affects industry demand and growth. Performance trends in client markets also affect industry operators. Strong demand from several downstream markets has benefited industry firms over the past five years, including professional services, financial services and healthcare sectors. Industry revenue increased strongly over the three years through 2018-19.
The Temporary Staff Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Germany, Italy, Holland, Switzerland, Australia, Canada et al. Statistics has it that there are about 9,987 registered and licensed temporary staff firms (labour hire services firms) scattered all across Australia responsible for employing about 406,186 and the industry rakes in a whooping sum of $30 billion annually.
The industry is projected to grow at 6.2 percent annual growth within 2015 and 2020. It is important to state that companies with largest available market share in the industry in Australia are; Persol Australia Holdings Pty Ltd, RGF Staffing Pty Ltd, WorkPac Pty Ltd, Randstad Pty Limited, Adecco Holdings Pty Limited and Manpower Services (Australia) Pty Limited.
The Temporary Staff Services industry in Australia will continue to blossom because more and more organizations are beginning to realize that they need the services of employment consulting firms to help them take away the stress of recruiting workforce for their business.
From all available statistics, it is safe to say the Temporary Staff Services industry in Australia is growing steadily despite the competitive nature of the industry. One thing is certain, if you are well positioned and have the required business skills, network, a robust CV bank, you may likely not have to struggle to compete in the industry in Australia.
Lastly, it is important to state that in Australia, Labour hire is referred to by the legal term of ‘Labour hire arrangement’; and refers to the employment practice of an employer supplying its employees to another workplace, for profit. Labour hire arrangements often overlap with, but are distinct from the practice of temporary staffing.
2. Executive Summary
Paul Anderson & Co® Labour Hire Firm is a world class labour hire firm that will be located in Sydney, the capital city of the state of New South Wales, Australia. We have been able to secure a standard office facility in a good business district in the heart of Sydney.
Paul Anderson & Co® Labour Hire Firm will engage in providing temporary staff to clients on a fee or contract basis in Sydney – New South Wales and other cities in Australia. Paul Anderson & Co® Labour Hire Firm is a client-focused and result driven labour hire firm that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pockets of our clients.
We will offer a complete range of recruitment consulting services to our clients and we will ensure that we work hard to provide the required staffing solutions needed by our clients to accomplish their business goals and objectives.
At Paul Anderson & Co® Labour Hire Firm, Pty Ltd, our client’s best interest comes first, and everything we do is guided by our values and professional ethics. We will ensure that we hire consultants cum recruiters who are experienced in a wide variety of recruitment consulting and training et al.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will at all times demonstrate our commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
Paul Anderson & Co® Labour Hire Firm, Pty Ltd is founded by Paul Anderson. Paul Anderson graduated from University of Sydney (First Degree in Personnel Management), and AGSM MBA, University of New South Wales (MBA). He is a Certified Recruiting Specialist (CRS), a Certified Personnel Consultant (CPC) and has other certifications in Human Resources.
3. Our Services
Paul Anderson & Co® Labour Hire Firm, Pty Ltd is going to offer varieties of related recruitment and training within the scope of the temporary staff services industry in Australia. Our intention of starting our labour hire services business is to make profits from the industry and we will do all that is permitted by the law to achieve our aim and ambition.
Our business offerings are listed below;
- Contract labour services
- Labour on-hiring services
- Labour staffing services
- Labour supply services
- Temporary labour hire services
- Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
4. Our Mission & Vision Statement
- Our vision is to become a premium labour hire services concept in the whole of Australia while maintaining an unwavering dedication to our people, values and principles.
- Our mission is to provide professional and trusted labour hire services that assist businesses in operating sustainably.
- We provide workable labour hire services and training solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.
Our Business Structure
As part of our plans to build a standard labour hire services business in Sydney, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, qualified, honest and hardworking employees.
The kind of labour hire services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Sydney, Australia as long as they are willing and ready to work with us to achieve our business goals and objectives.
Below is the business structure that we will build Paul Anderson & Co® Labour Hire Firm, Pty Ltd on;
- Chief Executive Officer/Lead Consultant
- Recruitment Specialist
- Training and Development Executive
- Legal Secretary
- Admin and HR Manager
- Business Developer (Marketing and Sales Executive
- Customer Service Executive
5. Job Roles and Responsibilities
Chief Executive Office/Lead Consultant:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for drawing up contracts and other legal documents for the company
- Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
- Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
- Handles recruitment, human resource and capital development contract for our clients
- Works with the Training and Development Consultant to develop training solutions for clients
- Track hours and bill to clients.
- Handle any other responsibility as assigned by the Lead Consultant
Training and Development Consultant
- Coordinating training programs facilitated by Paul Anderson & Co® Labour Hire Firm, Pty Ltd
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Identify training and development needs for staff through job analysis, appraisals and consultation
- Collect briefs from clients in respect of Recruitment exercise, Learning and Development and Advisory services
- Facilitate and coordinate strategic sessions.
- Work directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
- Responsible for handling all trainings both internal and external for the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
Business Developer (Marketing and Sales Executive)
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Paul Anderson & Co® Labour Hire Firm, Pty Ltd engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a solid labour hire services firm that can favorably compete in the highly competitive temporary staff services industry in Australia.
Part of what the team of business consultant did was to work with the management of the firm in conducting a SWOT analysis for Paul Anderson & Co® Labour Hire Firm, Pty Ltd.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Paul Anderson & Co® Labour Hire Firm, Pty Ltd;
Our core strength lies in the power of our team; our workforce. We have a team that are considered experts in the industry, a team with excellent qualifications and experience in recruiting and training. Aside from the synergy that exists in our carefully selected workforce and our strong business network, Paul Anderson & Co® Labour Hire Firm is well positioned in a business district with the right demography and we know we will attract loads of corporate clients from the first day we open our doors for business.
As a new labour hire services firm, it might take some time for our organization to break into the market and compete with market leaders in Australia such as Persol Australia Holdings Pty Ltd, RGF Staffing Pty Ltd, WorkPac Pty Ltd, Randstad Pty Limited, Adecco Holdings Pty Limited and Manpower Services (Australia) Pty Limited; that is perhaps our major weakness.
Labour hire arrangements are used by many large companies in Australia in their workforce. No doubt, the opportunities in the temporary staff services industry in Australia of which labour hire services is a part of is indeed massive and we are ready to take advantage of any opportunity that comes our way.
The demand for temporary and contract staff services is influenced by the national unemployment rate, outsourcing trends and technology changes hence a reduction in the national unemployment rate will adversely affect the growth of our business. We are also not ruling out the fact that unfavorable government policies as it relates to labour and employment will sure pose a major threat to our business.
7. MARKET ANALYSIS
- Market Trends
Quite a number of distinct trends have emerged in recent time in the consulting industry which is why staffing agencies and consulting firms alike are positioning their organizations to survive the peaks and troughs of an ailing economy.
As a matter of fact, most of these trends aid staffing agencies cum consulting firms and organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the consulting industry could be attributed to changing demographics, attitudes and work styles.
The Temporary Staff Services industry is forecast to rise strongly over the next five years, as the negative economic effects of the COVID-19 pandemic wane and the national unemployment rate declines. These factors are anticipated to drive demand for the industry’s services over the period.
Many firms that require temporary staff do not have the scale or funds to hire specialist full-time staff, and instead rely on industry firms to supply skilled and professional workers on short-term contracts or for project-based work. Using contract and temporary staff provides client companies with greater flexibility, particularly for short-term work and during periods of economic uncertainty. Revenue and demand Industry revenue is projected to gro.
Lastly, it is now becoming trendy in the temporary staff services industry in Australia for smaller firms to merge with bigger firms and vice versa; mergers and acquisitions. Many labour hire firms all over Australia are coming to the conclusion that the bigger the better for them.
8. Our Target Market
Although Paul Anderson & Co® Labour Hire Firm, Pty Ltd will initially serve small to medium sized business, from new ventures to well established businesses, but that does not in any way stop us from growing to be able to compete with the leading consulting firms in Australia.
We hope to someday merge or acquire other smaller labour hire firms and expand our services beyond the shores of Australia. As a full service and standard labour hire services firm, Paul Anderson & Co® Labour Hire Firm have a variety of practice areas to help startups grow especially as it relates to recruitment and training.
While we work with a variety of organizations and industries, B Paul Anderson & Co® Labour Hire Firm, Pty Ltd will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, mining and construction companies.
Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed companies in the country and at the same time smaller businesses.
In other words, our target market is the whole of Sydney and subsequently other parts of New South Wales and Australia in general. Below is a list of the people and organizations that we have specifically designed our services for;
- Job applicants
- Professional, scientific and technical services sector
- Finance, banking and insurance sector
- Healthcare sector
- Construction sector
- Manufacturing sector
- Government and defense sectors
- Mining, energy and utilities sectors
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Households and families
Our Competitive Advantage
The level of competition in the temporary staff services industry depends largely on the location of the business and of course the niche of your recruitment consulting business. If you can successfully create a unique niche for your business, you are likely going to experience little or no competition. For instance; if you are the only labour hire firm that recruits maids for organizations and homes in your location, you are sure of monopolizing that aspect of staffing.
Paul Anderson & Co® Labour Hire Firm, Pty Ltd might be a new entrant into the temporary staff services industry in Sydney – New South Wales, Australia, but the management staffs and board members are considered gurus. They are licensed and highly qualified recruitment consultants. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
We are mindful of the fact that there are stiff competitions amongst players in the temporary staff services industry in Australia, hence we have been able to hire some of the best business developers to handle our sales and marketing. Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets.
We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard labour hire services business that will leverage on word of mouth advertisement from satisfied clients. Paul Anderson & Co® Labour Hire Firm, Pty Ltd is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in Sydney – New South Wales, Australia and other parts of Australia.
- Promptness in bidding for labour hire contracts from the government and other corporate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver quality recruitment and training consulting services to them
- Leverage on the internet to promote our business
- Engage in direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
10. Publicity and Advertising Strategy
We have been able to work with our in-house consultants and other brand and publicity specialists to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the temporary staff services industry in Australia by storm which is why we have made provisions for effective publicity and advertisement of our labour hire services firm.
Below are the platforms we intend to leverage on to promote and advertise our labour hire business;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Bill Boards in strategic locations all around Sydney – New South Wales and major cities in Australia
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions
- Ensure that all our staff members wear our customized clothes, and all our official cars are customized and well branded.
11. Sources of Income
It is the practice for labour hire firms to earn their money by charging their clients for the amount of work the employee undertakes. In most cases, the recruitment firms receive the same amount as the employee. Labour hire firms make more money when they help organizations recruit highly skilled staff on a permanent basis.
Paul Anderson & Co® Labour Hire Firm, Pty Ltd is established with the aim of maximizing profits in the temporary staff services industry in Australia and we are going to ensure that we do all it takes to attract clients on a regular basis.
Paul Anderson & Co® Labour Hire Firm, Pty Ltd will generate income by offering the following labour hire services to individuals and for organizations;
- Contract labour services
- Labour on-hiring services
- Labour staffing services
- Labour supply services
- Temporary labour hire services
- Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
12. Sales Forecast
As long as there are people living in Australia and business starting and growing in Australia, the services of labour hire firms will always be needed. We are well positioned to take on the available market in Australia. and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation.
We have been able to examine the labour hire services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Paul Anderson & Co® Labour Hire Firm, Pty Ltd, it is based on the location of our business and the wide range of labour hire services that we will be offering;
- First Fiscal Year (FY1): $250,000 (AUS$)
- Second Fiscal Year (FY2): $450,000 (AUS$)
- Third Fiscal Year (FY3): $600,000 (AUS$)
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
13. Our Pricing Strategy
When it comes to getting paid, most labour hire agencies will charge you approximately $35 per hour per employee, while you may only be willing to pay around $25 per hour. Hourly billing for consulting services is a long – time tradition in the industry.
However, for some types of consultancy services especially recruitment and training, flat fees or per head billings make more sense because they allow clients to better predict consultancy costs. As a result of this, Paul Anderson & Co® Labour Hire Firm, Pty Ltd will charge our clients a flat fee or per head for many basic services.
At Paul Anderson & Co® Labour Hire Firm we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises.
We are aware that there are some clients that would need regular consultancy and advisory services as it relates to staffing and performance management, we will offer flat rate (commission/percentage) for such services.
- Payment Options
The payment policy adopted by Paul Anderson & Co® Labour Hire Firm is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of Australia.
Here are the payment options that Paul Anderson & Co® Labour Hire Firm, Pty Ltd will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
14. Financial Projections and Costing
Starting a labour hire services firm can be cost effective because on the average, you are not expected to acquire expensive machines and equipment. What you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, pay bills, purchase relevant software apps, promote the business and obtain the appropriate business license and certifications.
These are the areas we are looking towards spending our startup capital on;
- The total fee for incorporating the business in Australia – $417 – $506 (AUS$)
- The budget for basic insurance policy covers, permits and business license – $4,500 (AUS$)
- The amount needed to acquire a suitable Office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $40,000 (AUS$)
- The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $ 5,000 (AUS$)
- The cost for purchase of the required software applications (CRM software, recruitment software and Payroll software et al) – $10,500 (AUS$)
- The cost of launching our official Website – $600 (AUS$)
- Budget for paying at least three employees for 3 months plus utility bills – $10,000 (AUS$)
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500 (AUS$)
- Miscellaneous: $1,000 (AUS$)
Going by the report from the research and feasibility studies, we will need about $80,000 (AUS$) to set up a small scale but standard recruitment consulting business in Australia.
Generating Funds/Startup Capital for Paul Anderson & Co® Labour Hire Firm
Paul Anderson & Co® Labour Hire Firm is owned and managed by Paul Anderson and other business partners. They are the financiers of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $30,000 (AUS$) (Personal savings $20,000 (AUS$) and soft loan from family members $10,000 (AUS$)) and we are at the final stages of obtaining a loan facility of $50,000 (AUS$) from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
15. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Paul Anderson & Co® Labour Hire Firm is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent services.
Paul Anderson & Co® Labour Hire Firm will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re-training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in various industries: In Progress