Hiring through a labour supply company is common in Hong Kong’s construction industry due to labor shortages, but it has both advantages and drawbacks. Here’s a detailed breakdown:
✅ Pros of Using a Labour Supply Company
1. Faster Hiring Process
- No need for long recruitment – Agencies have pre-vetted workers ready for deployment.
- Saves time on job postings, interviews, and background checks.
2. Flexibility in Workforce Management
- Short-term & project-based hiring – Easily scale up/down workers as needed.
- No long-term contracts – Pay only for the labour you use.
3. Access to Skilled & Certified Workers
- Agencies provide CIC-certified (Green Card) workers, licensed tradesmen (electricians, welders, etc.).
- Some supply foreign workers under legal schemes (SLS, CIC Imported Workers).
4. Reduced Administrative Burden
- Handles payroll, MPF, taxes, and insurance – Less paperwork for your company.
- Manages worker disputes – The agency deals with HR issues.
5. Compliance with Labour Laws
- Ensures workers have valid visas (if foreign) and proper safety training.
- Reduces risk of Labour Department penalties for illegal hiring.
6. Lower Risk of Worker Shortages
- If a worker quits, the agency quickly replaces them.
- Useful for urgent projects with tight deadlines.
❌ Cons of Using a Labour Supply Company
1. Higher Costs
- Agency fees (15–30% markup on wages).
- Hidden charges (transport, overtime, replacement fees).
2. Less Control Over Workers
- Quality varies – Some agencies provide inexperienced workers.
- No direct supervision – Workers may lack loyalty to your project.
3. Potential Legal Risks
- If the agency fails to verify work visas, your company could face fines.
- Misclassification risks – If workers are treated as employees (not temps), you may owe back benefits.
4. Communication & Cultural Barriers
- Foreign workers may have language issues (e.g., Nepali, Indonesian workers).
- Different work cultures can lead to misunderstandings.
5. Dependency on the Agency
- If the agency goes bankrupt or delays payments, workers may walk off the job.
- Difficulty switching agencies mid-project.
6. Possible Safety Concerns
- Some agencies cut corners on safety training to save costs.
- Workers unfamiliar with your site’s specific risks.
💡 When Should You Use a Labour Supply Company?
✔ Best for:
- Urgent manpower needs (e.g., sudden project ramp-up).
- When you lack HR resources to handle hiring.
❌ Avoid if:
- You want full control over training & supervision.
- Your budget is very tight (direct hiring is cheaper long-term).
Alternatives to Labour Supply Companies
- Direct hiring (ads on JobsDB, CIC job matching).
- Foreign worker schemes (SLS, CIC Imported Workers) if local hiring fails.
- Subcontracting entire work packages to construction firms.
How to Choose a Reliable Labour Supply Company?
- Check licenses (registered with Labour Department).
- Read reviews (ask other contractors for referrals).
- Compare fees (avoid unusually cheap rates).
- Visit their office to assess professionalism.