Information and communications technology executive recruitment firm Pact Global is introducing a service which lets companies access skilled professionals on a permanent basis without having to directly hire or contract staff members.
Pact Global co-director Colin Morris said organisations traditionally hire staff either on a permanent or contractual basis but Pact Global's HR Build and Lease service gives companies a third alternative to hiring staff. It gives companies that are hindered by current budget requirements or headcount restrictions access to long-term staff chosen specifically for their organisation.
Under the new service Pact Global hires individuals as full-time staff for the client company and providing all staff entitlements, holidays, sick leave and the like until the client can take over as employer – usually in about six to 12 months.
Morris said these are critical, long-term appointments that companies are counting on to equip them for an upturn, that will help drive revenue in the meantime.
Hans Oechslin, also co-director at Pact Global, said the key behind the HR Build and Lease service is the “permanent jobs mentality” of individuals sourced to participate in the service. In contrast to an organisation hiring a contractor, staff provided through the HR Build and Lease service will be selected specifically for their suitability for the long-term job, and will be treated as permanent staff by the client, he said.
Oechslin said Pact has been dealing with clients and developing the service for the past 12 to 18 months, which was officially launched on October 27.
The cost of obtaining staff via the Build and Lease service is between 5 to 10 per cent more than a full-time executive, but up to 40 per cent less than hiring a contractor, according to clients, Oechslin said.
“Contractors have huge margins and can charge a higher fee as there is no permanency to the role,” Oechslin said.
Pact Global now has six clients signed up to its HR Build and Lease Service. Most of these are organisations based in the US or Europe, “which don’t have the money to spend on creating Australian resources,” he said.
For example, one of Pact’s clients, an unnamed enterprise application vendor, elected to use Pact to set up a support team in Australia. So far, Pact has hired 23 people for the client, all of which have received full training and “feel part of the organisation”, Oechslin said.