Debunking 5 common contract staffing myths

April 23, 2018 7:39 am Published by

Today businesses are faced with such economic volatility that it is essential to remain flexible in order to accommodate constant changes.

The simple truth is that no matter how careful you are at planning your staffing strategy you will be faced with the unexpected. An employee’s absence or unexpected changes in demand for your products and services can and will create short term labour shortages.

Disappointing customers is certainly not a viable option, and this is why contract staffing is increasingly being accepted as a preferred method of recruitment across many levels.

Contract recruitment focuses on employing workers for a short-term assignment and reduces the organisation’s responsibility as it is more flexible for both the employees and the employer and offers a hassle-free recruitment process.

Indeed, typically one in three employees in top Indian companies has been employed on a contract basis and Industry reports claim that contract staff will account for about 10% of India’s formal sector employment by 2025, next only to China and the US₁. When you look at the benefits you can see why more and more employees and employers are choosing this type of employment method.

Employing contract workers affords businesses the ability to scale up quickly to meet volatile market demands; increased flexibility and ease of resource allocation such as technology; reduced costs of hiring and on-boarding of new talent, and access to a wider pool of skilled talent.

For employees’ priorities have changed over recent years with enhanced career opportunities, remuneration and job flexibility being prioritised over job security and permanency. Opting for contract-based job roles allows workers to work at their own time and pace.

Unfortunately, contract staffing is surrounded by a number of myths and misconceptions and it’s these myths that often keep employers from enjoying the many benefits of contract staff.

So, let us try and debunk 5 of the most common contract staffing myths:

Myth 1: Contract staffing is only for low level jobs

Albeit temporary and contractual staffing started mostly with lower end jobs such as factory work, data entry, accounting, sales, backend operations and routine administrative tasks, this is certainly not the case today.

Contract staffing is proving both popular and beneficial across virtually every industry such as IT and engineering and increasingly includes highly skilled professionals in mid and senior level roles with experts or managerial profiles up to the board of a company.

An increasing number of talented professionals are seeking out contract roles not only for the flexibility and often higher pay, but for the ability to work for many different companies broadening their experience and range of expertise.

Myth 2: Contract staffing is much harder than permanent hire

There is often a perception that hiring contract workers adds a large amount of administrative burden for businesses. However, if businesses outsource their needs to a competent staffing firm then the job becomes a lot easier and indeed a lot quicker than a permanent hire.

Myth 3: The learning curve is too steep

When companies are understaffed, it can feel like teaching a new hire how to get the job done is too time consuming. However, by choosing talented contract staff based on their existing skills for the specific task, the on-boarding period can be reduced significantly.

Staffing firms use rigorous screening, interviewing, skills testing and background/reference check processes to ensure the quality of talent they supply. Plus, unlike recruiting on your own, a staffing firm’s candidate comes with a guarantee.

Myth 4: You never get the best people

This is probably one of the biggest misconceptions about contract workers. Many believe that you won’t have access to the cream of the crop and that the workers only take contract jobs because they can’t find a permanent position.

However, more and more candidates are choosing contract working as a lifestyle, especially if their skills are in high demand.

Contract working promotes skill development because as a contractor, you offer a specialised service that can be used across different industries and as a benefit they get to work with various industries and as a result, learn while they work.

Plus, contract workers are invested in the job and therefore, produce the same quality and quantity of work as regular employees. After all workers have a strong incentive to put their best effort in: the next assignment. These employees understand that doing a great job today means more work will be available to them tomorrow.

Myth 5: Staffing firms are too expensive

If you consider solely placement fees, you may conclude that staffing firms are more expensive than the direct hire approach.  However, in reality by leveraging staffing firms’ expertise and economies of scale to quickly and cost-effectively access the talented candidates you need, you can save money. 

You can also reduce overtime, training and payroll administration expenses by using temporary employees to handle your extra workload. Additionally, staffing experts can show you how to lower your labour costs by reducing your core staff to meet the low end of your production cycle and then bringing in supplemental help for busier times.

One thing is for sure, businesses will have to move away from traditional talent arrangements which rely heavily on permanent employees, to a more diversified workforce with contract workers, freelancers, consultants supplying them with key skill requirements.

This will offer a more agile and responsive view to recruiting with employers hiring for ad-hoc skill requirements purely on the basis of needs. Still have doubts on whether to go for Contractual Staffing or not? Well, IMS one world can be at your rescue! Acquire detailed information about Contractual Staffing here! Or, want to talk to our expert? Get in touch today at:

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