Of late, the concept of contract staffing or recruiting job candidates via third party staffing companies has gone up considerably in the Indian recruitment scenario. Businesses in India – domestic and multinational corporate have resorted to the idea of temp hiring and have started outsourcing recruitment via numerous staffing companies.
However, if we delve a little deep into history, we will realize that the form of contract staffing existed even millennia’s ago in India. Earlier kingdoms used to take people or soldiers on contract to fight battles and got a share in the spoils of the battle. Later, across industries and boundaries contract staffing was used in the fields of education, shipbuilding, architecture, manufacturing, and even vocational activities.
In modern times, we are only building on those lines. Bigger companies, especially in the domain of IT and retail are increasingly resorting to (somewhat smaller) staffing companies to hire job candidates.
Temp hiring is predominantly done for individual positions, short duration of workforce needs, particular skill sets and also to fulfill immediate demands. The understanding is, “the association between the employees and the organization for fixed time span and is subjected to renewal.”
Benefits of contract staffing/temp workforce
The primary purpose of contractual hiring is usual done by organizations so; they can focus on their core business. Other reasons for recruiting via staffing companies are explained below:
i. Increased focus on core business
ii. Rebate in administrative overheads
iii. No liabilities associated with permanent employment
iv. Help speed up the overall recruitment process
v. Access to a much wider talent pool
Indian staffing industry – current scenario
Owing to so many benefits, organizations are resorting to the concept of temp hiring and seeking the help of staffing companies to fulfill their staffing needs. Studies and researches conducted about the Indian staffing industry state that the industry is poised to witness substantial growth in the coming years.
Thanks to the Government of India and the burgeoning IT sector, Indian’s staffing industry currently, has not only performed well over the past few years but is expected to grow manifold by 2020. While IT is now leading the growth of the Indian staffing industry, other sectors like retail, e-commerce, healthcare, BFSI, and others are also expected to provide the required fillip to the staffing industry.
The Indian staffing industry has already organized itself to ensure high compliance standards and has developed engines for a speedy delivery. IT systems have become more mature, and many leading staffing companies are leveraging the power of social media to reach out to associates. According to more industry insights, the temporary workforce in India is likely to make up 15% of India’s formal employment workforce in the next years.
Currently, India has the third largest contract staffing workforce in the world, after China and the US. The Government of India continues to be the biggest employer of temporary workforce amounting to nearly 15 million. This is trailed by the IT and ITeS, and retail sector. The Indian staffing industry is expected to grow by at least 20% by 2020.
With several policy-related initiatives of the government including liberalization of certain archaic labor laws, the market share of temp workforce is expected to increase further. Given the current situation, it is believed that the current challenges facing the staffing industry are also somewhat limited and therefore, staffing companies in India do have the advantage of expanding their business rapidly. It is the perfect time for the organized staffing firms to pull up their socks and tighten their capabilities and scale up the new growth trajectory.