Contract Staffing
Our contract staffing solutions enable companies to build flexible, cost-effective workforces that they can scale up or scale down depending on macro and business requirements. We leverage our modern technology platform, as well as our Pan India team of recruiters, and client account managers to provide clients a seamless one-stop solution for all their staffing needs.
Contract staffing is a hiring arrangement where individuals are hired only on terms specifically set out in a contract. It usually refers to a fixed-term or project-based, rather than permanent, hiring arrangement. In many cases, it is arranged by a third party staffing agency.
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A contract staffing firm usually provides the following services
Contract Staffing
Here, we explain what contract staffing is, and set out its advantages and disadvantages as an approach to Human Resources.
- Contract staffing occurs when a third party agency provides non-permanent staff for a client company.
- It is an alternative to other HR solutions such as direct employment, independent contractors and PEO.
- Advantages of contract staffing include fast hiring, cost savings, hiring across multiple locations and mitigating compliance risks.
a. A contract for services, not an employment contract.
Here we explain what contract staffing is, and set out its advantages and disadvantages as an approach to Human Resources.
b. Fixed-term, or project-based hires, not permanent.
It applies to a relationship of a fixed time period, or relating to a specific project. When that period is over, the contract terminates. It does not usually refer to permanent staffing arrangements.
c. A third party agency
A staffing agency (sometimes also called a ‘labor hire company’, ‘employee leasing company‘ or ‘contract services company’) is usually engaged to lend or assign their staff to the client company. These staff may themselves be employees of the staff agency, or in some cases, contractors of the staffing agency.
While the definition above covers the most common way in which the term ‘contract staffing’ is used, it is worth acknowledging that it is also sometimes used to include other services, such as hiring independent contractors.
Advantages of Contract Staffing
Given the range of options available for human resources, why would a firm add contract staffing to the mix? Some of the advantages include:
Speed of hiring
A contract staffing agency often has a full roster of workers ready and available to work. For any individual business hiring staff directly, recruitment, vetting, internal sign-off etc takes a considerable amount of time.
With contract staffing, a staffing agency takes care of this, ensuring that a client company has staff in place as quickly as possible. This can be particularly useful for companies accelerating their growth, such as startups.
Cost savings
Often when looking for a non-permanent hiring, business look to engage independent contractors. However, hiring independent contractors directly means hiring without extensive knowledge of contractor market rates, as well as needing to have administrative procedures in place for managing invoices and compliance.
A contract staffing agency can source staff in full knowledge of labor market prices, and will already have compliant invoicing and payment arrangements in place.
Multiple location hiring
An individual company may have an understanding of their local labor market, but be lost when it comes to hiring overseas.
Most contract staffing firms operate over large areas (whether nationally or internationally), which means one agency can deal with all hiring for a large multi-location corporation.
Reduce risk of employee misclassification
Employee misclassification occurs when a business has classified a worker as a contractor, where they are a de facto Where this has occurred, a business can be liable for unpaid taxes and social contributions, and penalties, both to the authorities and to staff themselves
Using a contract staffing company ensures which employs workers directly ensures that relevant taxes and social contributions are withheld for employees.