Contract Staffing

Lighting dark alleys

Why is contract staffing preferred to permanent recruitment?

Hiring permanent staff for short-term projects in not feasible. MNCs find it challenging to hire and find candidates during short-term assignments. Due to unspecified profiles on job portals, it becomes a task for recruiters to find candidates willing to work on contract. In fact, contract staffing is the most testing of all recruitment activities.

In such situations HR managers have only one option and that is to render help from recruitment support agencies which are specialised in contract staffing. Agencies are not only experts in finding candidates but also sport a pool of candidates short-listed for contract staffing.

Unlike permanent staffing, contract staffing has its own benefits, which are listed below:

Cost factor:

The most important factor that every company seeks is reduction in cost. By implementing the contract staffing model, MNCs have a good advantage of sharing company costs with the agencies. A part of a candidate’s salary is managed by the agencies. The remuneration contract can be for a month or extend up to 3 months, in either cases the agencies are solely responsible to pay candidates.

Quick sourcing:

While permanent staffing has its own pros and cons, contract staffing on the other hand is more likely to help companies’ source candidates at a moment’s notice. The database of candidates maintained by recruiters enable MNCs to hire candidates as and when the project demands.

Shared responsibility:

Anything untoward or unfavourable done by candidates, the company can blame the recruiters for such demeanour. Since most candidates are recruited through agencies, anything unlikely done by them can affect the contract staffing recruitment agency. Besides, this also helps the company maintain its positive brand image.

New talent:

Through contract staffing, MNCs get a chance to interact with new talent on almost every single assignment they come up with. As the contract gets renewed, so will the list of candidates. Therefore, with each project, new talent is recruited.

Similarly, contract staffing also enables HR managers to retain employees at the end of their contract if they perform exceedingly well during a project. Therefore, contract staffing has its own multiple benefits that help companies build their own talent pool.