“Contract staffing” is a concept that is gaining prominence in the workplace – both in discussions and implementation. Businesses and organisations of all shapes and sizes are revolutionising the concept of recruitment by implementing contract staffing in offices.
So, what is contract staffing, how do businesses obtain such talent and how do staffing agencies get contracts? This article will provide a brief overview of contract staffing and its many aspects – so that you can make an informed decision about whether it is the right hiring format for your company.
Understanding Contract Staffing
Let us first understand what is contract staffing. It is also referred to as temporary staffing. While it is a practice that has been around for a while, it has gained more prominence in the digital age – as there are myriad work opportunities one can avail from thousands of miles away.
Contract staffing is a process wherein an employer hires employees for a specific period or project. This could span from a few weeks to years – depending on the project requirements. While it helps employers gain employees for a fixed period at a far lesser cost, it also helps employees who want a more flexible approach to work.
The different kinds of contract staffing include:
- Fixed-term contract: People are hired on a project basis which may or may not be extended over time. While the pay is fixed, there is no guarantee of future projects.
- Part-time contract: Employees under this contract have fixed working hours and fixed pay.
- Zero-hour contract: Employees have no specified working hours or project duration. They are kept on-call for sudden work requirements.
- Freelance contract: Freelancers who have a specific skillset gain projects that pay them for utilizing those skills for a specific project/duration.
Agency staff: An agency acts as an intermediary and sends staff to a company upon request. The company pays the agency, which then pays the contractual staff.
How Contract Staffing Works: A Step-by-Step Overview
Having understood what is contract staffing, let us understand how it works. Depending on the kind of contract staffing process utilized by the company, the process may differ.
Generally, people who wish to become contract staffers approach a recruitment/staffing agency that understands their skillset and professional goals before adding them to the candidate pool. The agency then facilitates the hiring process of the candidates and helps them obtain companies and clients that are seeking temporary staff.
This is a legal process with paperwork done at each step of the way. So that the candidates enter the workforce in a fair manner and the rights of all stakeholders (recruitment agency, company and candidate) are protected.
How do staffing agencies get contracts? They already have a wide network of companies and businesses that rely on contract staffing for their projects. This network continues expanding over time – which increases a candidate’s chances of getting an opportunity.
Top Benefits of Contract Staffing for Businesses
There are various benefits of temporary staffing, which is why many companies are gradually meandering towards it. Some of these benefits include:
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Reducing the Risks and Liabilities of a Business
In this hiring model, the third party (recruitment agency) is paid to send someone for a role. For temporary projects, companies do not have to worry about factors such as overtime pay, sick leave, and unemployment benefits. They also do not have to set aside a budget for the training and management process. This reduces their costs, risks and liabilities.
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Work From Anywhere
Thanks to technology, contract staffing gives companies the option to recruit the best talent – without geographical constraints. With flexible work arrangements, people can work from the comforts of their home and earn a decent income.
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A Larger Candidate Pool
This is one of the prime benefits of temporary staffing – having access to a wide pool of candidates. Whether a company needs freelancers for a project, accounting or IT staff or someone with highly specialised skills, contract staffing allows you to get the best of the best for a project.
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Convenience
During busy seasons or periods wherein your business needs more manpower, contract staffing can help you fill the labour shortage. As you can pay someone to work flexibly and possibly even from their home – you can operate your business and even scale it without bearing extra costs.
Challenges to Consider in Contract Staffing
It is important to weigh both the benefits and challenges of contract staffing to ensure that you make an informed decision.
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Labour Laws
While many employers misunderstand the meaning of temporary staffing – it is important to know that even though you are not liable to treat contract staff with full-time benefits, you must still abide by the country’s labour laws.
Paying your staff the appropriate salaries on time, and complying with national and international labour laws – all must be followed to the tee. Non-compliance could result in legal action.
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Retaining Candidates
As contract staffing involves short-term projects and contracts, retaining talent becomes a challenge for many companies. If you like the work of contractual staff, you might have to go the extra mile to retain them for a longer or more permanent duration.
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Job Security
While contract staffing is a great option for those who prefer flexible work, job security is a major issue as there is no guarantee of receiving consistent work. Most projects do not offer the benefits of full-time work such as paid leave and other employee benefits. This is a major factor to consider.
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Performance Metrics
For companies that place importance on targets and KPIs, assessing the performance metrics of a contractual employee or a project may be difficult, as staff may change, dates and deadlines may be extended, etc.
This will make it difficult for a company to determine whether it is heading in the right direction.
Is Contract Staffing Right for Your Business?
So, is contract staffing the right course for your company? Here are some factors to weigh before deciding:
- Define the staffing needs for the contract and select the right size of the contractual candidates’ pool.
- Talk to recruitment agencies that can help you understand whether your operations will benefit from contract staffing.
- Understand the candidate’s work pattern, financial requirements, etc. this will help you determine whether they will be a good fit for your company and projects.
To further understand the nuances of contract staffing, get in touch with BGC, which has a proven track record of providing end-to-end hiring solutions to eliminate all your recruitment risks.
BGC will help you manage important business operations such as:
- Recruitment
- Payroll
- HR services
- Salary payment
Get in touch with us today!
