What is Contractual Staffing?

While looking for new and innovative ways to manage costs in their business, contractual staffing has been the chosen route for many companies in recent years. Contractual staffing refers to the recruitment of employees for short-term employment contracts as opposed to full-time permanent workers.

Contractual Staffing has increasingly become popular because of its benefits for workers and employers. Contractual personnel methods allow employers flexibility. Contractual Staffing also includes independent contracts, part-time work, seasonal work, etc.  This model has several advantages for employers and employees who want to enjoy more flexibility and free time.

How does Contractual Staffing help employees?

  • For modern workers, contractual personnel regulations mean more control over schedules and type of work, and more which gives higher flexibility.
  • Instead of considering routine nine to five work, employees can work in contractual personnel arrangements at times that are more in line with their schedules and needs. They have control over their workload, the nature of their work, and often even the costs they incur. You can specialize in one type of work or build a variety of different jobs every day.
  • Potentially higher incomes than individuals can contract services with many companies and, as part-time employees, often get higher wages than if they worked full time.

Benefits for entrepreneurs

  • More flexible in adapting to changing market conditions and work requirements. The ability to match a collection of work to urgent needs is a big advantage if managed effectively. 
  • Potentially lower labor costs, because companies do not need to employ full-time staff for each position. Imagine a small business that needs an accountant for 6 hours a week. Hiring a full-time accountant is expensive and a waste of resources when long-term relationships can be managed by part-time resources. 
  • Labor laws may be strictly related to filing taxes, benefits and various social benefits paid. They are largely avoided by the use of contractual personnel.

The contractual staff offers undeniable benefits for employees and employers. Employees get flexibility and better access to work, while businesses cut costs, increase productivity, and use a wide network, on-demand. It is not surprising that 65 percent of employers believe that they will increase the use of contractual personnel regulations in the future. Combine this trend with the development of innovative cellular technology by making it easier than ever for employees to connect with job seekers. It is also easy to see how contractual people can make your business more efficient, effective and positive. 

Why does Contractual Staffing grow so fast?

For starters, the Internet makes it easier than ever. Employees no longer have to stand near file cabinets and paper forms to complete their work. Businesses increasingly work in the cloud, so work files can be accessed from locations other than the office.

This flexibility allows workers to take more responsibility for their livelihoods. Many workers use several part-time or casual opportunities to shape their preferred lifestyle. While others maintain traditional full-time employment, they supplement it with free or gig work.

The demand for Contractual Staffing

Industry insiders in the business world have seen major changes in how some of the best scientists, engineers and technical staff and brilliantly find their next job. Many scientists give up permanent and permanent positions to express themselves as free agents. As an added benefit, the free-agent lifestyle allows employees to better reconcile work and family life.

Contractual employee turnover may be higher, the company is not very loyal to these people, and the people are the same. If there are better job offers for temporary workers, they can quickly disappear and the company must find new employees in a short time


EPFO FAQs

  1. Should a candidate pay a staffing agency for a job?
    No. A candidate doesn’t have to pay the staffing agency. It’s usually the private firm or the government that pays the staffing agency when they need to hire. A candidate needs to register on a job portal or contact a recruitment agency. When there is a job opening, the staffing agency will contact the candidate if she/he is on their database.
  2. For contract workers, what is the duration of employment?
    That depends on the nature of the job and the employer. A candidate has to be aware of the terms of employment before signing the contract. Usually, the duration of the job can range from a couple of months to a few years. Having said that, contract workers (upon completion of their contract) can be hired by the employer on a full-time basis if performance has been more than satisfactory.
  3. What is the difference between staffing and recruitment?
    The difference is rather subtle: staffing is the process of obtaining and retaining employees. Recruitment is a part of the staffing process wherein emphasis is upon maximizing applications for the vacancy. Read our blog on the differences between staffing and recruitment that explains the similarities and differences in detail.
  4. What does the future hold for staffing services in India?
    There is a severe talent crunch in India. And companies are out-competing each other to attract the best candidates. Amidst the tussle and a dearth of quality, staffing services are undergoing immense transformation based on a number of parameters such as work flexibility, technology, candidate experience and more. How exactly? This blog deep-dives into the five trends that are impacting staffing in India.
  5. What are the benefits and allowances received by contractual workers?
    Just like the duration of employment, the allowances and benefits will depend on the nature of work and the employer. Contract workers draw a regular salary like permanent employees, are enrolled under EPF policy and health insurance plans. Bonuses, incentives, and other perks, however, are subjective.
  6. When hiring temporarily, why does it make sense to transfer payroll to a third party?
    When it comes to contract staffing there is a lot that a contract staffing handles: onboarding, compliance management, 3rd party payroll services, induction, and even termination formalities. Since the nature of contract work is temporary in nature and the employees are often hired in bulk, management of temp employees can put a lot of stress on the company’s HR department who usually have their hands full dealing with permanent employees and other in-house tasks that require their time and effort.
    By transferring payroll to a 3rd party, companies can reduce costs, save time, and free up resources. Here’s a post that talks about the benefits of third-payroll services.
  7. Choosing a staffing agency can be tricky? Is there any rulebook that can help?
    Yes, it can be tricky. More so when there are plenty of staffing providers in the market. When it comes down the final choice, there are certain things you must consider first before picking the ideal staffing partner for your firm such as the reliability and reputation of the provider, their hiring process, their experience and so on.
  8. What are the other services provided by staffing agencies apart from helping with the hiring of contract employees?
    What makes a staffing agency stand out? They should offer so much more than just contract staffing services. Their services must be flexible enough to adapt, regardless of the nature and size of the business. Their approach must be methodical and should infuse technology. There are many roles and responsibilities of a staffing provider; a provider that offers complete staffing solutions should be your pick if you’re on the lookout to scale up any given day.

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I have 10 years of experience in SEO, Digital Marketing, Content Marketing, and have knowledge in topics like tax, HR, Recruitment & Staffing. When I’m not doing what I do, I suit up, flick the ignition on my bike, and hit the road. But soon enough, I’m back doing what I do best — researching, writing, marketing, and optimizing the content & website.

Comments

  1. comment-author
    Namarata Singh

    Quite an informative article on Contractual staffing. Such services help clients to scale up their market share much faster and to finish niche projects and developments.

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