In today’s business world where competition and complexity run parallel to each other, flexi staffing has evolved as the new solution to innumerable issues. It has moved from the manufacturing and service sectors to the IT and ITES sector.
Instead of hiring permanent employees, companies find flexibility in hiring contract employees, with required skill sets, to complete specific projects. This allows them to accomplish their work at a lower budget within the stipulated time frame and keep their focus completely on their core business areas.
With most companies shifting their focus towards flexi staffing, this industry is estimated to see a growth of 10% -12% in India, between 2017 and 2018. Today, we stand third in the world to have the largest number of flexi staffing workforce. Our staffing industry stands at 266.5 billion worth, of which flexi staffing occupies 75%, permanent recruitment 12% and 13% other services. With the increase in competition, the road ahead would be to have an access to the best of technologies, have training facilities for a ready-to-join workforce and a strong client relationship.
Challenges in Contract/Temporary Hiring
1. Attracting, Recruiting and Retaining Right Talent on Contract Employment
There is a sheer absence of the right environment to support flexi staffing in an organized manner. A lack of well-established regulations in support of the flexi staff has further mobilized the unorganized sectors to completely skip the prevalent guidelines of the labour laws.
2. Lower Pay without Other Perks or Benefits
Though the work input of the flexi staff is similar to the permanent employees, sadly, they are entitled to a much lower pay without any perks or benefits. This is a profitable arrangement for companies as it allows them a greater flexibility when it comes to their work force. But, unfortunately, it is indirectly leading to the exploitation of the contractual employees.
3. An Obscured Career Graph
A well-planned career graph and growth plan motivate employees to give in their best. Providing greater opportunities and empowering employees to execute challenging responsibilities is a way to boost their commitment towards the company. However, contract staffing doesn’t promise such prospects thereby constricting their growth and restricting their career progress. This is a major reason why candidates shy away from accepting contract employment. In case, they do accept flexi offers it is often a compromise, which is not a healthy idea as it goes completely against the very purpose of recruitment. It has a direct impact on the ability to retain the employees for a long haul.
4. Failure to Recognize and Reward Contract Employees
It is an important point to be noted that companies turn a blind eye to the achievements, talents and skills of the contract staff compared to the permanent ones. This attitude of companies back fires as it spoils the entire working environment and culture by breeding negativity. Many candidates on flexi rolls after making career moves have revealed the fact that they do not feel like a part of the mainstream. They are left out and their work and efforts go unappreciated. There is a constant pressure to strive harder and even take up work beyond their profile or put in extra hours of work only to create a good impression.
5. Reluctance to Accept Contract Employees
Today most companies are aware of flexi staffing and are happy to hire employees on contractual positions. But, sadly, these very companies refuse to hire well-qualified candidates for permanent positions if they happen to be working on a flexi position in another company. Irrespective of the candidate’s skill sets, experience and required qualification, companies step back when it comes to hiring such candidates. This is a grim reality we cannot escape from. In spite of the support the candidates offer and even after being well within the company’s budget limit most companies are biased against contract employees.
Initiatives to be Taken by Principle Employers to Attract and Retain Contractual Staff
1. Transparency
There is an urgent need to stipulate a concrete contract and clearly spell out the terms and conditions of the job. Apart from this, there need to be simplified and unified labour laws in India to make things less complicated.
2. Appreciate and Reward Contract Employees
Every company should take the initiative to recognize talent and appreciate it, whether it be a permanent employee or one on contract. Being appreciated, acknowledged and rewarded motivates employees to do better and be loyal to the company. In fact, there are companies where contract employees have worked for four to five years without a second thought. Why? Obviously, the reason is a good work culture and job satisfaction.
3. Culture Assimilation and Inclusiveness
Best human resource practices and ethics are the needs of the hour. It is extremely important to implement processes that make the temporary job seekers feel at ease not just during the recruitment process but all throughout their work period. All that employers need to understand is that temporary employees deserve the same kind of respect and recognition like the permanent ones.
4. Salaries for Temporary Staff
Salaries of staffing jobs need to catch up with the permanent ones. The sooner we accept this fact the better. The job demands are the same whether it be a contract job or a permanent one. Employees on the same profile, whether they are on-rolls or are on contractual positions, should have a similar salary with similar opportunities for perks and other benefits.
5. Career Progression Plan and Challenging Opportunities
Contract employees need room to grow and challenging opportunities to make a positive move in their career. They can be retained only if such an environment is created where their growth path is clearly carved out.
6. Accepting Flexi Staff
A contractual position doesn’t reduce a candidate’s talent nor does it wipe away his / her experience and qualification. Companies need to change the irrational and absurd mindset that prevents them from hiring contact staff for permanent positions. By excluding the contract staff employees are losing on valuable human resource.
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Flexi-Staffing more information -click the links below
Flexi-staffing is one of India's fastest growing job creation engine
Indian IT flexi staffing industry to see significant growth
IT flexi staffing is a $3.04 billion industry
Volatile IT industry boosts flexi-staffing
Sarla Sharma
Pioneer Management Consultant Pvt Ltd
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