Since the introduction of labor dispatching in the domestic market, many companies have adopted this employment model, including the chemical industry and energy sector. Some state-owned enterprises also retain a certain proportion of labor dispatch workers each year in addition to a formal staff, thereby replacing some formal employees. Many may wonder what the difference is between labor dispatch workers and formal employees, and why businesses would choose labor dispatch over formal employment. Below, the editor will discuss this topic with you.

Labor dispatching, simply put, is when a dispatching company signs a labor contract with an employee and sends them to work at a company in need. Regular employees, on the other hand, refer to those who have signed labor contracts with the employing company and have a labor relationship with it.

The difference lies in the entity signing the labor contract. Dispatched employees sign their contracts with the dispatching company, whereas regular employees sign directly with the employer. So, why do some companies opt for dispatched employees over regular ones?

1. Employing formal employees requires the company to handle everything from recruitment to onboarding, daily management, and even offboarding—this undoubtedly adds to the cost. However, by opting for dispatch workers, the labor dispatch company takes care of everything, thus saving the company from unnecessary expenditures.

2. Companies can mitigate risks by opting for labor dispatch. If a company directly employs formal staff, they bear certain labor dispute risks. However, by using labor dispatch, all disputes can be handled and resolved by the labor dispatch company.

3. Employing staff through labor dispatching offers greater flexibility. For some manufacturing companies or production industries, during the off-season, there is often a waste of personnel, which inadvertently increases the company's costs. By utilizing dispatched employees, the company can increase staff during peak seasons and reduce them during the off-season, allowing for highly flexible personnel use.