Ghosting and no-shows are the single clearest sign of a labour hire provider in trouble. If you are seeing repeat no-shows, candidates who confirm then vanish before their first shift, or back-fills that never arrive, your provider is costing you money you probably cannot see on the invoice. The other six signs below compound the same problem: high turnover, no supervisor visits, opaque charge-out, slow timesheet fixes, and missing licence updates. This guide walks through each, gives you the industry benchmarks for warehouse and manufacturing, and shows you how to run a 30-60-90 day remediation framework before you switch providers.
Switching a labour hire provider mid-engagement is disruptive. The first response should be a structured performance conversation backed by data. The second response, only if the first does not move the needle, is a planned transition. Both are easier when you have the signs, the metrics, and the framework ready to go.
Sign 1: Ghosting and no-shows
This is the problem competitors and forums talk about most, and it is usually the first sign that a provider has lost control of their worker pool.
What it looks like
We are Wise Recruitment and Consulting, a licensed labour hire provider (VICLHL10427) with forklift operator pools across Melbourne and Sydney. The numbers below reflect the live market as at early 2026.
- A worker confirms the shift the night before, then does not show
- A worker shows up for one shift and never returns for the second
- A recruiter stops replying to messages about a worker they placed last week
- The provider’s mainline goes to voicemail before a 5am shift
What it usually means
Ghosting is almost always a symptom of an under-resourced recruitment pipeline. The provider is booking workers they have not actually vetted, confirmed, or committed to. They are relying on the odds.
Industry benchmarks for context
No-show rates in warehouse and manufacturing in metro Australia commonly sit in the 3 to 8 per cent range for a well-run labour hire provider. A no-show rate above 10 per cent is a red flag. Above 15 per cent is a provider that is not managing their roster.
What to do this week
- Track no-shows for the next 14 days. Record the worker name, shift, and notification time.
- Run the same calculation on confirmed fill rate (filled shifts / requested shifts).
- Book a review call. Put the numbers in front of the account manager. Ask what changes in the next 14 days.
Sign 2: No back-fill within 2 hours (or ever)
A no-show is a problem. A no-show without a back-fill is a bigger problem. The back-fill SLA is where you separate providers with a worker pool from providers with a spreadsheet of names.
What it looks like
- A worker does not show at 6am. The supervisor rings at 6:15. The provider promises a replacement “as soon as possible”. No replacement arrives.
- Back-fills arrive 3 to 4 hours late, by which time the shift has already lost productivity
- The provider’s response is “we will try again tomorrow”
What it usually means
Worker pool density has collapsed. The provider either does not have enough vetted workers near your site, or does not have enough staff on the phone at 5am to mobilise them.
Benchmark
A compliant provider in metro Melbourne or Sydney should deliver a back-fill within 2 to 3 hours of a confirmed no-show. Regional sites should be within 4 hours, depending on worker density.
What to do this week
- Check your agreement. Is there a back-fill SLA in writing?
- If not, write it yourself. Propose a 2-hour metro, 4-hour regional SLA with a credit for missed targets.
- Send it to the account manager for sign-off within 14 days.
For the full seven clauses any labour hire agreement should include, see /blog/labour-hire-agreement-template/.
Sign 3: Inconsistent worker quality and high turnover
Workers who cannot read a pick-slip, do not know how to use the forklift attachment you asked for, or quit after three shifts, drag throughput down even when the fill rate is fine.
What it looks like
- A new worker arrives who cannot demonstrate basic task competence
- The same role turns over 3 or 4 times in a month
- Supervisors waste shift time retraining
- The 90-day retention rate on the provider’s workers at your site sits below 40 per cent
What it usually means
The provider is not screening well. They are putting candidates to work who should have been declined. The cost of poor screening is paid at your site, not theirs.
Industry benchmarks for AU warehouse and manufacturing
Annual turnover in Australian warehouse and manufacturing workforces commonly sits in the 25 to 40 per cent range, higher for pure casual pools. A well-run labour hire provider should keep their workers at a host site for longer than the industry average, not shorter, because the induction investment is already sunk. If a provider’s 90-day retention at your site is below 40 per cent, they are below a defensible benchmark.
What to do this week
- Pull the past 60 days of placements. Calculate 90-day retention: workers placed more than 90 days ago who are still active / workers placed more than 90 days ago.
- If the number is below 40 per cent, book a review with the provider. Ask to see their screening process for your roles.
- Agree on a screening upgrade: minimum reference call, competency check, clarified induction. Put it in writing.
Sign 4: No site supervisor visits
A provider who never visits the site is running the account remotely. Remote management of a live workforce does not work.
What it looks like
- You cannot remember the last time the account manager was on site
- Your supervisors have never met the account manager in person
- Issues get escalated by email rather than resolved on a walkthrough
- The provider does not notice when your shift pattern changes
Benchmark
Monthly site visits minimum for an account above 10 workers. Weekly visits for a large account during the first 60 days of engagement. A named account manager who has been to the site at least once a quarter minimum.
What to do this week
- Book a mandatory monthly site walk-through for the next 90 days. Put it in the diary.
- Log each visit and the issues raised and resolved.
Sign 5: Opaque charge-out rates
A labour hire invoice you cannot reconcile is a labour hire invoice you are probably overpaying.
What it looks like
- The invoice shows hours x blended rate. No line items.
- A super or WorkCover-related rate increase is notified without a breakdown
- The provider cannot explain on request where the margin sits in the charge-out
What it usually means
The provider is preserving room to adjust their margin without transparency. Or, in bad cases, they are underpaying super or WorkCover and the blended rate is hiding it.
Industry benchmarks
Agency margin on warehouse and manufacturing labour hire in Australia typically sits in the 15 to 25 per cent range. A transparent provider will show you the margin when asked.
What to do this week
- Ask for the next invoice with a full line-item breakdown: base rate, casual loading, super, WorkCover, payroll tax, PPE, margin.
- Cross-check super at 12 per cent (ATO Super Guarantee from 1 July 2025) and casual loading at 25 per cent under most modern awards (Fair Work Ombudsman).
- Flag any discrepancies in writing. Keep the email.
Sign 6: Slow timesheet queries and invoicing errors
Small invoicing problems are early indicators of bigger compliance problems. A provider who cannot send clean invoices is often the same provider who cannot manage their payroll reliably.
What it looks like
- You raise a timesheet query. It takes 5 working days to resolve.
- Invoices arrive with the wrong week, wrong shift, or wrong worker
- Credits for disputed hours take multiple cycles to land
- Payroll-related worker complaints start to show up on your site
Benchmark
A well-run provider resolves a timesheet query within 1 to 2 business days. Invoice first-pass approval rate should sit above 97 per cent.
What to do this week
- Track the past 4 invoice cycles. Count the number of queries raised and time to resolution.
- If resolution takes more than 2 business days on average, ask what changes.
- Consider moving to a weekly invoicing cycle so problems surface and get fixed faster.
Sign 7: No licence compliance updates
In licensed states (Victoria, Queensland, SA, ACT), labour hire providers must hold a current licence. The licence can be suspended or cancelled. If your provider’s licence lapses and you are not informed, your arrangement is exposed.
What it looks like
- The provider has never sent you a licence renewal notice
- Certificates of currency (public liability, PI, WorkCover) are out of date when you check
- The provider cannot produce a current licence number on request
What to do this week
- Verify the provider’s licence on the relevant state register. Victoria at https://labourhireauthority.vic.gov.au. Queensland at https://labourhire.qld.gov.au. SA at https://www.cbs.sa.gov.au.
- Request current certificates of currency for public liability, PI, and WorkCover.
Benchmarks at a glance
| Metric | Defensible benchmark (2026) | Red flag |
| No-show rate | 3-8% | Above 10% |
| Fill rate on confirmed shifts | 95%+ | Below 90% |
| Back-fill response (metro) | 2-3 hours | Over 4 hours |
| 90-day worker retention at site | 60%+ | Below 40% |
| Site visit frequency (monthly minimum) | 1 per month | Less than quarterly |
| Invoice first-pass approval rate | 97%+ | Below 90% |
| Timesheet query resolution | 1-2 business days | Over 3 days |
| Licence and COC current | Yes, evidenced | Expired or unverifiable |
Pin this table to the operations noticeboard. A provider scoring red on 2 or more metrics is underperforming on objective grounds.
The 30-60-90 day remediation framework
Before you switch providers, run a structured 30-60-90. Most operational issues are fixable if the provider is willing and the host sets clear expectations. Switching is expensive – induction costs, site knowledge loss, and short-term fill-rate dips are real. Try to fix first.
Days 1-30: diagnose and set targets
- Week 1. Pull 60 days of data: fill rate, no-show rate, back-fill times, 90-day retention, invoice queries, site visit log.
- Week 2. Book a review meeting. Put the numbers on the table. Share the benchmark chart above. Agree which metrics are priority.
- Week 3. Agree 4 to 6 measurable improvement targets in writing, with a 60-day deadline. Examples: back-fill SLA of 2 hours in metro. Monthly site visit. Line-item invoicing from next cycle. 90-day retention to 50 per cent.
- Week 4. Confirm the account manager on the account. Get escalation contacts in writing.
Days 31-60: measure and intervene
- Weeks 5-6. Run the metrics weekly. Share the dashboard with the provider.
- Weeks 7-8. Hold a mid-point review. If metrics are improving, continue. If they are flat, escalate within the provider’s senior team.
Days 61-90: decide
- Weeks 9-10. Lock in the full 60-day performance read. Benchmark against the targets set in week 3.
- Week 11. If all priority metrics are within benchmark, renew or extend under a tightened agreement.
- Week 12. If metrics are still off, begin the transition. Give formal notice under your termination clause, start the RFQ for a replacement, and plan the handover.
Three outcomes sit at day 90: renewed with confidence, renewed on probation with a further 60-day review, or transitioned out. The framework forces a decision.
How to switch providers without operational disruption
If the 30-60-90 does not produce improvement, a planned switch is straightforward.
Step 1: Read your termination clause
Check the notice period, exit obligations, and any temp-to-perm fees. If your termination clause includes a loss-of-licence or breach trigger, use it where applicable. A 30-day notice is standard; a 90-day notice should be renegotiated on renewal.
Step 2: Run a 2 to 4 week parallel
Run the new provider alongside the outgoing provider on one shift pattern or one site. This surfaces operational issues before the full switch.
Step 3: Plan a worker transfer
Good workers from the outgoing provider often want to stay with the site. Check your outgoing agreement for any restraint of trade or temp-to-perm conversion fee. Where the new provider is willing to engage the same worker, set the paperwork up so the worker is not caught in the middle.
Step 4: Knowledge transfer
- The incoming account manager needs:
- Site induction schedule
- Shift patterns and booking lead times
- Contact tree and escalation path
- Invoice line-item template
- Licence and COC register
- Historical metrics so the benchmarks are understood
Step 5: Post-switch monitoring
Track the same metrics for 90 days post-switch. Providers that scored well on the RFQ can still slip into the same patterns if not monitored.
For a walk-through of the selection process, including a printable RFQ template, see /blog/how-to-choose-labour-hire-company/.
Sample performance scorecard
Use this monthly. Scores 1 (poor) to 5 (excellent).
| Area | Weight | Score | Weighted |
| Fill rate and no-show control | 25% | ||
| Back-fill response time | 20% | ||
| Worker quality and retention | 20% | ||
| Site presence and account management | 10% | ||
| Invoicing accuracy and transparency | 10% | ||
| Compliance and licence maintenance | 10% | ||
| Communication responsiveness | 5% | ||
| Total | 100% |
A total below 60 is underperforming. Between 60 and 75 is acceptable with improvement targets. Above 75 is a provider worth keeping.
Common mistakes when addressing underperformance
Mistake 1: Complaining without data.
“The provider is terrible” gets nowhere. A dashboard with no-show rates, back-fill times, and retention numbers gets a response.
Mistake 2: Waiting too long.
Most patterns are visible within 30 days. Three-quarters of an SLA review is done by week 8. Do not drift to month 6 before you act.
Mistake 3: Switching without a plan.
Cut-over without parallel running or a knowledge transfer loses 4 to 6 weeks of productivity. The cost often exceeds any rate saving from the new provider.
Mistake 4: Expecting only the provider to change.
Sometimes the host’s own booking lead times or shift complexity drives no-show rates. A balanced review includes the host’s rostering practice.
Mistake 5: Not documenting the trigger.
Keep every email, dashboard, and meeting note. If the provider disputes the switch, the record matters.
Takeaways
- Ghosting and no-shows are the clearest early sign of a labour hire provider in trouble. Track no-show rate for 14 days and benchmark against 3 to 8 per cent.
- Seven signs together: ghosting, no back-fills, high turnover, no site visits, opaque pricing, slow timesheets, and missing licence checks.
- Warehouse and manufacturing annual turnover commonly sits at 25 to 40 per cent. A provider below 40 per cent 90-day retention at your site is below benchmark.
- Use the 30-60-90 day remediation framework before switching providers.
- If you do switch, run a 2 to 4 week parallel, plan the worker transfer, and monitor the new provider for 90 days.
Ready to replace an underperforming provider without operational disruption?
Wise Recruitment and Consulting supplies warehouse, forklift, food processing, and manufacturing workers across Melbourne and Sydney. Transparent charge-out, written back-fill SLA, and a named account manager who visits site. Licensed in Victoria (VICLHL10427). Request a quote for labour hire or call 1300 021 673.
Frequently Asked Questions
Track no-show rate, fill rate on confirmed shifts, back-fill response time, 90-day worker retention, and invoice first-pass approval. A provider scoring red on any two of these for a month is underperforming. A structured review against documented benchmarks is more useful than anecdote.
Monthly minimum for an account over 10 workers. Weekly during the first 60 days of a new engagement. A named account manager should visit at least once a quarter regardless of account size. Remote management of a live workforce rarely works.
Yes, subject to your termination clause. Most agreements have a 30-day notice. If the provider breaches the agreement, loses their licence, or fails on a material SLA, you may have an immediate termination right. Review the clause, document the trigger, and plan a 2-week parallel run before cut-over.
Warehouse and manufacturing annual turnover in Australia commonly sits in the 25 to 40 per cent range, higher for casual-heavy operations. A good labour hire provider should keep workers at a host site longer than that industry average. A 90-day retention rate at your site below 40 per cent is a clear red flag.
In metro Melbourne or Sydney, a back-fill for a confirmed no-show should be on site within 2 to 3 hours. Regional sites sit at 3 to 4 hours depending on worker density. The SLA should be in the written agreement with a credit or remedy for missed targets.
In licensed states (Victoria, Queensland, SA, ACT), an expired licence makes continued use of the provider a compliance exposure for the host. Pause new bookings immediately. Request a current licence number and certificates of currency. If the provider cannot remedy within 7 days, trigger your termination clause and move to an alternative provider.rge-out rate you pay to the provider already includes 12 per cent super as part of the on-costs.
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