What is contract staffing?
Contract staffing is a cost-effective concept. The idea is to hire employees for a shorter duration. Contractual employees are paid based on their availability and performance. Expenses related to allowances and fringe benefits are thus minimized. This makes it a lucrative option for companies in India.
Growth of staffing agencies in India
Contract staffing agencies in India have been growing at 10-12% annually. This is primarily due to the growth of the temporary workforce. The growth of the gig economy in India is pushing up the demand for part-timers in the labor force.
- Sectors like retail have been aggressively hiring contract staffers leading to a surge in their demand in the workforce.
- Termination on account of non-performance is also easier for a company. Fear of lawsuits and accountability is negligible. Moreover, employees with lesser qualifications often get to work on short-term projects.
Benefits of contract staffing in India
- Getting qualified employees at a cheaper cost helps an organization streamline its operations. In this regard, most staffing agencies in India have been expanding their database of employees to offer instant solutions.
- The increasing attrition rate in the service industry has also increased the demand for staffing agencies.
- In view of this, a temporary staffing agency in India is providing fresh talent, with strong domain knowledge and experience. Furthermore, contract staffers have greater flexibility and willingness to perform.
- Corporates do not have to keep contract staffers in their payroll. They simply pay the staffing agency that in turn provides all kinds of contractual employees in the long term. Regulatory compliance for contract staff is managed through the “The Contract Labor (Regulation & Abolition) Act – 1970” (CLRA).
- Overall the access to data for a contract staffer is limited. This is also an advantage as chances of data leak are minimized.
So with 15 million contractual employees in India, the temporary staffing market is only going to get bigger and more competitive. The learning, flexibility, higher payout, and talent are definitely making contract staffing a sustainable option in a country like India. It is a win-win situation for both employers and staffers and is expected to grow exponentially in the near future.