The business environment is constantly changing. The demand and supply patterns change every pattern, and thus, so, one must be able to increase or decrease the workforce. These workforce adjustments aren’t always possible with permanent employees who, if employed, must be kept for the years to come. Contractual workers offer a good alternative for the same. One can easily benefit from the services of a top contract staffing agency to get these workers and adjust one’s workloads. This article will discuss all one needs to know about contract staffing.
What is contract staffing?
Contract staffing issue of temporary employees (often shortened as ‘temps’) to meet one’s temporary workforce requirements. The contract of employment in such cases limits the period of employment to a shorter period and not indefinitely, as is the case with permanent employees who are only expected to leave the organization when they retire. Thus all jobs can be classified under those two heads – permanent and contractual.
Contractual staffing recruitment is best done through a recruitment agency that can avail such employees. At the end of the period, the temporary employee might be converted into a permanent one if both employer and employee agree or they must leave the organization.
Where is contract staffing desirable?
Needless to say, permanent employment is the default type of recruitment for good reasons. It offers several desirable benefits – most importantly keeping the training and orientation costs as well as recruitment costs low. These are high costs to a company, and that’s why companies try to keep their employee turnover low.
However, there are certain jobs where contractual staffing is desirable. It is desirable if some of the following conditions are met:
- Jobs require low skills in nature.
- Job is required for a one-time task.
- Enterprise’s requirements are temporary or seasonal.’
- Training and orientation are either low or not too high.
- The cost of retaining employees through a lean period is higher than the cost of recruiting and training new ones.
- For a Workforce increase specifically to meet one-time or short-lived demand spikes.
Not all of the above conditions have to be met. Some of the industries where contractual workers are demanded include the following:
- IT professional for one-off creation of IT product
- Construction industry
- Industries producing seasonal goods
Temporary IT or Information Technology professionals, in particular, are in huge demand these days. As a result, one can observe a rise in the number of IT contract recruitment agencies in Saudi Arabia. Needless to say, these agencies aren’t the same and provide varying quality of services.
Six excellent benefits of contract staffing
The following are some of the most important benefits of contract staffing:
- Keeps one’s options open as one can always change over to permanent employees at the end of the contract.
- Reduces the cost of having to carry employees during lean periods.
- One only pays salaries when one has work to be gotten out of employees.
- Reduces the payroll burden on the enterprise.
- Keeps the level of operations flexible with options to increase or decrease operations as one may desire.
- Perfect for one-time tasks such as setting up software.
- It might significantly improve profits by reducing human resource costs.
Needless to say that the above list is by no means exhaustive. Under the right conditions, contractual staffing can increase the profitability of operations significantly. Needless to say, that to get the best of the above-mentioned benefits, it is important to choose only the best contract Staffing agency.
Finding the right kind of recruitment agencies
There are several contract staffing agencies offering their service, but one must always choose the best one.
For doing this, one must begin by making a list of various contract staffing agencies – it will put everything on paper, and one can conduct research for the right kind of agency more easily that way. Next, it is best to start listing the pros and cons of each such agency based on various criteria. The following are some of the most important criteria in this regard:
- The contract staffing company should be financially sound.
- It must have several years of experience in the field and must have developed a brand value.
- It should be able to deliver the temporary employees with the kind of skills one’s enterprise needs.
- It should also be able to deliver the service in areas where one needs temporary workers.
- A strong online presence, particularly with a website, is always a good sign.
- The previous client list should be checked to see what significant clients are already taking the services of the agency
- One’s own budget is always a consideration, and one must ensure that the agency won’t charge too much.
One can use the above-mentioned considerations to finalize a contract staffing company best suited to one’s needs. It is also a smart strategy to stick with a contract staffing agency that one has taken services of previously if there are no valuable gains to be made.
The downside of contract staffing
Contract staffing, much like almost everything else, is not without its downside. The following might be some of the disadvantages of using contract staffing:
- It might reduce the morale of the employees.
- It might increase the cost of training and orientation if these are needed for new employees.
- It might increase employee turnover.
- Temporary employees may not feel connected enough with the organization.
- It might attract resistance from employees.
- New employees might not have the necessary skills or qualities that they may desire.
Please note that the above downsides won’t apply equally to all conditions. Contract staffing should only be applied in cases where these disadvantages can be minimized while the advantages of hiring temporary workers are highest. The choice of the recruitment agency will also play a major role. The company may also take further actions to minimize these drawbacks of contractual staffing.
The Last Word
One can easily wrap up the above discussion by concluding that contract staffing companies offer valuable services that several enterprises stand to benefit from taking their services. As long an enterprise is smart about choosing a contract staffing company, it will provide valuable services to one’s company.