Need to Institutionalize Temporary Staffing

Temporary staffing refers to hiring employees for a pre-determined period of time, based on a company’s specific needs. According to Mr. Uppaluri, CEO of Randstad India, a recruitment consultancy, the temporary workforce is likely to account for 10% of India’s total formal sector employment by 2025.

Increase in Temporary Staffing

This increase in temporary staffing can largely be attributed to the greater flexibility that it provides to companies; they can hire employees for specific tasks, and don’t have to worry about keeping those employees on the payroll once those tasks are completed. This significantly reduces the costs for the company, since regular full-time employees have significant associated costs- salaries, training costs, office space etc. Individual employees benefit from such a system since it allows them to gain a broader range of experience, by working for a variety of companies. This experience leads to higher quality work, thereby increasing the value of these individuals in the job market. Even for unemployed professionals seeking a full-time job, working in a temporary role often provides opportunities to get hired as a full-time employee, since it allows them the chance to prove themselves.

However, this increase in temporary employment might also lead to a corresponding increase in job insecurity. Employees will no longer have the stability associated with having a regular, full-time job; they’ll be dependent on the employer to renew the contract, and may have to wait extended periods of time for the next job they get.

Need to Institutionalize Temporary Staffing

Institutionalizing temporary staffing offers a way to alleviate this job insecurity. A temporary staffing agency, like Randstad India, acts as an intermediary between individuals looking for employment, and companies that want to hire them. This allows them to channel workers with certain skill sets into companies that require those specific skill sets. Placement agencies with a large client base are therefore able to reduce the insecurities caused by the increase in temporary staffing; employees utilizing the services of these agencies know that they are likely to get new jobs without an extended waiting period. Many such organizations provide supplementary training for the employees, thereby improving their skill set, and increasing the likelihood of them gaining employment.

A placement agency also generally has a screening process for employees, which ensures that their clients do not have to do so. Access to pre-validated candidates makes them highly scalable; companies can recruit both small teams, and larger ones. Since companies trust the screening process of the temporary staffing agency, employees who are recommended by these agencies are also more likely to actually get the job. Thus, organizing the temporary staffing industry can help reduce the job insecurity that people currently experience.