Temporary staffing in India has seen a considerable increase in the last few years. Imagine a scenario - Your Company has landed a massive project. Departments have sent in their requisition for more workforce. You have the option of hiring more people, but the project is short-term, say six months, after which this excess workforce will become superfluous and add to costs. The process of recruiting and training people for the job will take time, and the project is suppose to start almost immediately.
As an HR manager, this is certainly your worst nightmare. But with temp staffing agencies, your problem can be handled easily in a cost-effective manner.
Temporary workforce, which was primarily made up of blue-collared or low-skilled workers earlier, now includes skilled workers who find demand in industries like IT/ITeS, BFSI, telecom, FMCG, manufacturing, retail, and healthcare. The Kelly Services and SHRM report, “Landscape of Temp & Contract Staffing in India” states that 42 percent of the organizations in the survey were willing to employ temp staff for a period of six months to one year. India has the third-largest temp workforce, after the US and China.
The Indian Staffing Federation predicts that the temp staffing sphere will grow from a mere 1.3 million to a whopping 9 million by 2025, which will be approximately 10 percent of the total workforce by then. Temp staffing in the IT industry alone is set to touch a figure of $5.3 billion by 2021. Although temp jobs are more popular among the younger age bracket and freshers, even experience people are now exploring temp or Flexi options for a better work-life balance.
Top Reasons for Using Temp Staffing Agencies
Temp Staffing agencies, also known as resource management agencies, are specialize manpower providers who have a pool of talent and employ them on a contract basis with companies as and when require. The talent pool comprises of a mix of candidates from different backgrounds, experiences, and skill-sets.
When you place a demand, the staffing agency matches your needs with the available candidates and puts them with you. The agency charges a commission from you, which is used to pay the salaries to temp staff after deducting the agency’s margin.
There are many reasons why Temporary staffing in India has become popular in various industries. Hence, some of the top advantages of using a temp staffing agency are-
Ready access to the vast talent pool
HR managers understand the challenge of finding the right talent through a tedious recruitment process. And there is no guarantee that the selected candidate will stay with the organization. Staffing agencies, however, have their recruitment process for selecting candidates, and you can get access to these candidates directly by bypassing the in-house recruitment process. Even if the temp staff leaves the project, the staffing agency provide you with a replacement.
Cost-effective and reliable
Since temp staff is not eligible for employment benefits such as paid leaves, insurance covers, bonuses, etc., the company can save on the associated costs. An in-house recruitment process also incurs costs without the assurance of talent retention. On the other hand, the services of staffing agencies are reliable and cost-effective. If your business is seasonal or if you have multiple short-term projects which demand different skill-sets, staffing agencies can be beneficial for your organization.
Avoid legal complications
More employees on-roll means more complications if anything goes wrong in compliance. Temp staffing agencies are responsible for keeping up with regulatory compliance, saving your organization from being vulnerable to non-compliance issues.
The option of converting temp staff to permanent
Some agencies agree to let their temp staff be absorb as permanent staff after they have spent considerable time in the organization. Your company, agency, and the candidate all benefit from this arrangement. You get a tried and tested candidate who is already familiar with the job role, the agency receives a commission, and the candidate gets a permanent job offer.
Since staffing agencies have many candidates in their pool, unplanned absences from work do not hamper the productivity at your end. The staffing agency provides you with a replacement, and you can rest assured of uninterrupted productivity. Companies can use temp staffing for sudden increases in workforce demand, to fill in for employees on sabbatical, or for intermittent short-duration tasks.
Benefit from trends in the industry
Temp staffing agencies are updated about the latest changes and demands in the industry. You can benefit from the information if your business is affected by these changes.
A Win-Win Situation
Temporary staffing in India is on the rise. As companies struggle to keep up with increasing costs and shrinking margins, having temp staff to work on important projects can be a boon in many ways.
While the IT sector demands specialized skill-sets such as machine learning, data science and analytics, cloud computing, and artificial intelligence, other industries demand non-technical skills such as sales and marketing, data entry, operations, finance, and legal. Temp staffing in India are gearing up for these demands by expanding their talent pool. In a skill-intensive job market like India, candidates also benefit from these demands. By associating with the correct staffing agencies, they assure excellent opportunities to start or boost their career in some companies.
The arrangement is not entirely devoid of challenges, however. Sub-optimal performance, quitting mid-way through a project for a better opportunity, lack of commitment towards the job and company culture, the agency running into a problem with the authorities are some serious issues when using the services of a staffing agency. But with certain checks, these risks can mitigate to a large extent.
Also, Pune being a commercial hub for big conglomerates and start-ups alike, temp staffing has witnessed a growing demand. There are many reliable temporary staffing services in Pune to choose from that offer generic and specialized temp staff as per your need.