What Is the Current Situation of the Manpower Supply Industry?

This proves that the emergence of this industry helps prevent manpower shortages in the labor system. Such activities create favorable conditions for companies to recruit workers and for job seekers to find employment. Manpower supply services are widely used, including by foreign workers, which is why in recent years they have become essential for almost everyone.

Manpower supply industry

Manpower supply is an activity involving the provision of workers and labor subleasing. To achieve human resource objectives, a company’s HR department must assess organizational needs, position itself in the recruitment market, search for and develop manpower sources. Acting as an intermediary in recruiting manpower from the labor market, enterprises do not need to recruit directly but instead lease labor from a third party.

Current Situation of Manpower Supply

In modern times, machinery operates under the control of workers, ranging from unskilled laborers to technically skilled professionals. Although machines can operate efficiently, they still cannot replace humans entirely. Companies, both domestic and foreign, require human management, supervision, and manual labor. In addition, enterprises need to maintain and expand their scale to benefit from government incentives, while domestic and foreign businesses continue to open new investment and business opportunities.

Unskilled labor has become scarce, and skilled labor with high professional qualifications is even scarcer. Utilizing and hiring highly specialized workers helps enterprises save budgets, reduce manpower costs, and improve work efficiency.

Vietnam is trending toward becoming an industrialized country. Industrial zones are rapidly emerging, leading to increased labor demand. The manpower supply industry has become more prevalent than ever. Manpower supply refers to licensed enterprises providing labor (temporarily or long-term) to other enterprises.

Employment service units sign contracts directly with workers but do not directly employ them. Workers are hired by other companies, meaning they work under the management of client enterprises. Recruiting companies can select workers based on job requirements and educational levels ranging from low to high.

Classification of Manpower Supply Industry

Supply and Management of Domestic Labor:

This group includes activities providing long-term, stable domestic labor and managing local manpower, representing workers in matters related to salary payment, taxes, and financial or manpower issues, without being responsible for directing or supervising workers.

This group includes activities that provide stable, long-term domestic labor and manage manpower, representing workers in salary payments, taxes, and manpower-related matters, while not being responsible for labor supervision.

Supply and Management of Overseas Labor:

This group includes activities related to supplying stable, long-term labor forces for overseas work, managing overseas labor, representing workers in salary, tax, and related financial matters. Labor suppliers are responsible for training and supervising workers.

Temporary Labor Supply:

This group includes hiring workers according to client requirements for a certain period to strengthen the client’s workforce. Temporary workers work during the contract period signed with the client. The labor supplier is responsible for managing and paying workers on behalf of the employer and ensuring sufficient working hours as agreed.

Activities of Centers, Agencies Providing Labor Consulting, Job Placement, and Brokerage:

This group includes activities such as listing jobs, recruiting workers, job placement services, where introduced individuals do not work directly for brokerage companies. Additionally, brokerage centers search, select, introduce, and arrange labor including management personnel; activities of talent agencies; and online recruitment platforms.

When Should Enterprises Use Manpower Supply Services?

Increased Production Demand:

When enterprises receive new orders, new projects, or enter peak business periods, workloads increase significantly. At such times, existing employees cannot meet work schedules. Overtime only partially addresses workload and may affect product quality. Therefore, a temporary workforce is required to quickly meet increased production demands.

Need to Reduce Personnel Costs:

During periods of low workload, redundant staff and low productivity increase management and operational costs. Besides fixed monthly salaries, enterprises bear additional expenses such as insurance, holiday bonuses, uniforms, etc. The challenge is reducing unnecessary labor during difficult times without being bound by long-term labor contracts.

Need to Focus on Core Tasks:

Newly established enterprises, small and medium-sized enterprises, and foreign-invested companies often face HR challenges, such as lack of labor law knowledge, limited experience, and budget constraints. Dedicated HR departments or manpower supply services help recruit, train, manage staff, and handle legal labor responsibilities, allowing enterprises to operate safely and efficiently, thereby improving production and management performance.

Please See More:

• Reputable and High-Quality Labor Supply and Labor Leasing Services

• Reasons to Use Manpower Leasing Services at Minatech

• Professional Technical Manpower Supply

Contact Information

The above is our full consultation content on the topic “Manpower Supply Industry.”
For any inquiries about labor leasing services in Bac Giang and surrounding areas, please contact Minatech VN for support and consultation.