The landscape of IT staffing and workforce is on the verge of revolutionary change, favoring a shift towards the culture of contract staffing or contract-based recruitment. Contract staffing has become an appealing option for both clients and candidates. So, let us know what contact-staffing is and how this term is fascinating business owners to:
- Save a lot of funds and investment
- Multiply the profits rates
- Improve the cash flow
- Improve relationship with clients
- Monitor and improve performance over the project
- Faster and replenishing contracts
Basically, contract staffing implies a co-employment relationship. As the name suggests, it is an official documented contract where a labor contractor provides staffing to a third party for a specific project or for a particular period of time at some specific pay-rate. Contract Staffing is especially for those companies who are not entirely open to the idea of staffing employee permanently, maybe because of financial boundaries or that company may need employees for a specific period or project.
What is Contract Staffing?
In a traditional staffing system (employee-employer relationship), where a company recruits a group of individuals directly, believing that these employees could theoretically spend the rest of the career for the same company. While with a contract-based staffing, the concept model between employee and employer differs. The contract recruitment or staffing is a management of employee arrangement, where an individual works for a company, but is actually an employee of recruitment company for a specific period of time to complete a specific project or task at a fixed pay scale. Companies utilize contract staffing mostly for special projects, to evaluate employee’s skills and to respond rapidly to the changing markets.
Why Contract Staffing?
With the practical implications of contract staffing over a specific project, task or period of time, it has reflected a high caliber working with increased productivity and decreased downtime.
- A contract staffing or contract recruitment deploys an experienced employee, who can bring value to your company by solving problems with a fresh perspective.
- A contract employee has experience has a diverse experience over a lot of projects in different companies which helps him to provide out of the box results in efficient results and boosted productivity.
- A contract-based project proceeds with an official documentation for a specific project or time period which avoids worry about the payroll arrangements. The contract staffing works on fixed costs, they are either hired per-project or per-hour basis. It saves pay benefits, insurance, payroll tax and other employee-related costs.
- At times, it happens that your company falls short of the required resources and being limited in with funds, you need to manage these blanks. This is where contract staffing or contract recruitment plays an integral role. You may contract the job out to the people who are skilled with years of experience in the respective domains. These are the professionals with years of expertise and proficiency that can boost the efficiency and productivity of your ongoing project. This contract-employee also brings have a fresh perspective and ideate from strategical grounds that your company not has explored yet.
- The permanent employees in a company or an organization are comfortable with only a specific set of skills and left to train or wonder about newer skills. While contract staffing deploys employees on-board with the required skill set and experience.
Benefits of Contract Staffing:
- Fixed Payrolls: Unlike the regular employees of the company, contractors are not hired on the company’s payroll. The feature that encourages the company to deploy contract recruitment is fixed costs. In addition, it also discourages overtime, regular wages, and overhead costs.
- Recession Proof: Direct contract hiring in the business, offers a lifeline to the recruiters. Companies can maintain the workforce in a balanced scenario even during the period of recession.
- Easy to Organize and Manage: Contract staffing and temporary recruitment make it easier for businesses to serve deliverable and fixed deadlines. While on the traditional recruitment, an employee of an organization has to juggle numerous tasks within the company, sparing less attention toward important projects and deadlines.
- Right Skill and Experience: Contract workers are sleeved up with the ability to handle a wide array of jobs and know how to devote their time to ensure that all the tasks assigned alongside for the project, get compiled with precision. It has a clear vision to deploy the right employee over particular tasks.
- Flexibility and Scalability: Another big benefit of contract staffing is workforce scalability. The contract-based employee exclusively benefits the businesses that are typically busy during the entire course of the year. They can add up number of expert and experienced professionals to their workforce during the busy months by contract staffing and keep the number of contract workers lower during the dry months.
