Contract staffing – Why is it becoming more popular?

A contract staffing is a specific hiring process in which a company or an organization hires manpower for a specific period of time. In contract staffing, every individual employee is hired on the basis of a specific work agreement. One of the more important aspects of contract staffing is that this contract limits the scope and defines the perimeters of the assigned job. Companies often hire top contract staffing agency to hire contract staff.

Simply put, candidates are required to work for a certain amount of hours to fetch a particular minimum scale of pay. 

Now, it is important for us to understand that a workforce inside of a company may be and perhaps should be (depending upon the scale of the business) of two types.

One group of staff members would obviously be on permanent payroll of the company. The other group includes the contract staffing.

This second type of hiring or contract staffing is rotational in nature - “Need-to-Hire” basis recruitment.  

Contract staffing specifically deals with a situation where there are certain works that are temporarily required to be done. It is quite obvious that a company is not expected to hire people permanently who will be required only once in a while or for a specific set of tasks that will be required to be done for a specific time period only. The reason for the company to decide on contract staffing is based on sound logic. No company in this world can provide a never-ending space in their offices. Business owners can’t possibly give everyone a cubicle and have them around because they took them for a necessary albeit sporadic job in nature. 

Companies these days immediately look for recruitment agencies for contract staffing. The reason is simple, recruitment agences or firms have a huge database covering human resources across all vocations and platforms. This database holds the informational details. Recruitment agencies or hiring firms matches the company’s exact requirements and finds out a pool of suitable candidates. Then these recruitment agencies call this pool of more or less suitable candidates for interviews and then the better ones are hired to fill up the specific job position. 

Now, here is the catch! Even though the successful candidates work at the office space of the company they are not really their employees. The individuals who are hired share a three way relationship between themselves, the company and the recruitment firm. Therefore, these workers are on the payroll of the recruitment firm and not of the company. 

The recruiting agency takes care of the contract, makes the candidates understand the guiding set of policies they need to adhere to while at their job in a specific company. All that these hired men and women will do is to render their specific set of services to the company and get paid by the hiring agency and not from the company. 

The reason for its popularity is based on a few solid reasons. One such reason is that these workers are not listed in company' payroll system and hence can’t sue the company directly. The company is not required to give them any permanent space because space crunch is a real issue everywhere. Plus, once the work is done, the company can simply ask the recruitment firms to terminate the three way hiring relationship.