As a traditional flexible employment method, labor dispatch has many similarities with what we commonly refer to as flexible employment and job outsourcing, but it is more special in terms of legal relationships (tripartite relationships).
For enterprises (employers) and job seekers (dispatched employees), the core benefits of labor dispatch are mainly reflected in the following aspects:
1、 Benefits for employers (enterprises)
This is the main reason why many enterprises, especially state-owned enterprises, foreign enterprises, and large factories, have been using labor dispatch extensively for a long time:
1. Flexible adjustment of staffing and personnel size
Addressing staffing bottlenecks: Many companies have strict headcount freezes, but their business urgently needs to hire personnel. Employees dispatched for labor services are not included in the internal staffing of the company, which allows for quick activation of business by bypassing this restriction.
Elastic expansion: When enterprises carry out short-term projects, explore new markets, or encounter seasonal business peaks, they can quickly recruit in bulk through dispatch companies; After the project is completed, personnel will be returned to the dispatch company without having to bear the trouble and cost of "layoffs".
2. Reduce employment risks and management costs
Employer liability transfer: In legal terms, the dispatch company and the dispatched employee sign a labor contract, which is the legal employer. Therefore, all tedious and high-risk matters related to the signing, renewal, termination, labor disputes, file management, and social security payments of labor contracts are handled by the dispatch company. The employing unit only needs to be responsible for on-site work management and business assessment.
Reduce the risk of labor disputes: If the dispatched employee is not suitable for the job, the employer can request the dispatching company to replace the candidate without directly facing labor arbitration or economic compensation issues.
3. Reduce recruitment and labor costs
Save recruitment costs: By utilizing the existing talent pool and recruitment channels of the dispatch company, a large amount of manpower and material resources for advertising, resume screening, and initial testing are saved.
Improve the efficiency of job matching: Dispatch companies usually have "talent reserves" that can quickly recommend suitable candidates.
Flexibility of salary and benefits: Enterprises can choose talents at different levels according to their needs, and only need to bear the agreed service fees and salary costs of dispatched employees, without having to bear the excess part of housing provident fund or some additional benefits.
4. Avoid some policy risks
In some areas, matters such as household registration indicators and employee household registration management can be professionally handled by dispatch companies, and enterprises do not need to invest extra effort in this regard.
2、 Benefits for individuals (dispatched employees)
Although the stability of dispatched employees is not as good as that of regular employees, this form of employment also provides unique value for job seekers:
1. Lowering the employment threshold and obtaining an "admission ticket"
Opportunities to enter large platforms: Many Fortune 500 companies, large state-owned enterprises, and listed companies, due to limited staffing, will recruit personnel through labor dispatch. For job seekers who temporarily lack education and experience, dispatching is an effective way to enter these large platforms and accumulate resumes.
Accumulate core experience: Although there may be differences in identity, in actual work, dispatched employees often come into contact with the same business, the same system, and even participate in core projects, which is very helpful for improving personal professional abilities.
2. The "green channel" for regularization
Show yourself up close: Many companies have a "conversion mechanism" for their dispatch positions. As a dispatched employee, due to the close interaction with regular employees and leaders in daily work, as long as they perform well and have outstanding abilities, they are easily visible.
Reduce information asymmetry: Compared to external job seekers, dispatched employees have a better understanding of the company's culture, business, and interpersonal relationships, and have lower adaptation costs after becoming a full-time employee.
3. Opportunities for trial and error in career exploration
If you are still unsure of what you are suitable for, dispatching provides a low-risk opportunity to try. You can experience different functions in different project dispatch positions and find the direction that truly interests you.
4. Security is more standardized than "gig work"
Compared to some temporary or gig workers, formal labor dispatch requires dispatch companies to sign labor contracts and pay social insurance, which provides basic legal protection for workers.
summary
If we compare enterprise employment to a "reservoir":
Regular employees are a stable source of water in the pond;
Labor dispatch workers are connected to the external pipeline of the pool - they can divert water at any time during busy hours (increase manpower), and discharge water in an orderly manner during idle hours (return to the dispatch company).
For individuals, although labor dispatch makes you an "outsider", it gives you an opportunity to observe up close and enter the circle.