If it were not for the construction industry, you would never see the tall, imposing megastructures in the world today. Worse still, how could you set up your buildings and other structures considering how hard it is to find a reliable workforce today? Well, the good thing is that construction companies have taken the trouble of finding the right guys for various projects, saving you the hustle of finding a competent workforce all by yourself. So how do they do this? Here are two techniques:
Permanent Placement Agreements
Essentially, a permanent placement agreement is one where the construction company finds the desirable candidates and assigns them to various projects. This is done at a predetermined fee based on the annual salary of the employee(s) or a reasonable percentage acceptable to you and the company. In some cases, the fee can also be affected by the amount of retainer paid to the agent. This is basically the amount you pay the company to secure the services of the professional in question. Permanent placement agreements are used when dealing with workers with continuous roles in the course of the project. A good example of such people are structural engineers who assess the project and draw reports from time to time
In a permanent placement role, the aim is to find the best fit for the job. The company approaches passive candidates holding similar positions in competitor firms and projects, examines them and sees how much value they can add to your work. You get to benefit from people with lots of experience to handle a project of your magnitude.
Essentially, these temporary-to-hire agreements allow the construction company to try out workers on a temporary basis, and then decide if they will keep them on a more permanent engagement. The temporary assignment grants them a trial period, presenting an opportunity to determine if the worker(s) in question are a good fit for your work. Such workers deal with the less sensitive work or complex work only when they are under strict supervision. They are a cheap source of labour, unlike a case where you would have gone for experienced and established names in the business.
Certainly, temp-to-hire agreements are cheaper than permanent placements because the construction company will be open to negotiating prices, getting the job done and helping its people gain experience and build a reputation. They are also good in cases where you cannot afford the services of experienced and established contractors, firms and workers in the market.