Whilst contract staffing is not a new concept in the corporate landscape, it still is a largely unexplored one because there is no dearth of business owners that are wary of implementing it in their organizations.
Should a business owner be wary of adopting a new practice that determines their hired workforce strength and quality? Definitely yes. Should they be concerned if contract staffing may not yield as good a result as they want? Yes, that’s worth a concern. Should then they decide against it and continue with their traditional hiring practices? Not recommended.
Contract staffing in itself is a model within a business model and any concerns regarding its success or effectiveness are justified. But this also happens to be a tried and tested model that is followed by a huge number of organizations worldwide. And because of this reason, the sheer number of companies providing the contract staffing service has gone up considerably. And as the law of averages goes, more number of service providers out there in the market increases the probability of finding a service provider that is reliable, committed to your success, and provides human resource that can be trusted on the scale of skills and experience.
Let’s first get into the ‘what’ of contract staffing
To explain it in a couple of lines, contract staffing is a business collaborating with an agency that contracts out its own human resource to their business partner based on the needs communicated to them. These “needs” are largely project related requirements. Let’s say you run an ABC software company and you are already partnered up with a contract staffing provider company XYZ. Now, at any stage of a project – be it right from the start or during the middle stages when you need to add more hands to the project – you can get in touch with your contract staffing agency and communicate the manpower requirements in terms of their expertise and experience to them. Then, XYZ may contract out one of their existing employees to your project for a specified duration or they can hire someone new, keeping the same terms.
How does it benefit
The benefits of contract staffing are manifolds – from process efficiency to monetary gains.
For starters, contract staffing relieves you of the stress of having to scout people to hire them in-house. The entire cycle of scouting and hiring is a multistep one and can run indefinitely. Not to mention, it may not be worth your while at the end of the day because the people you hire may not turn out to be as useful as they looked like on paper and during interviews.
But when you are handing the same job over to a company that is proficient in hiring people because that’s what supports their business model, you can be rest assured that you will be getting the best talent for your project.
In addition to the improved quality of workforce, cost is also a huge factor here that comes into play by the virtue of you having to pay the recruitment company fixed amount as per the contract you sign with them. Comparing that with the monthly pay checks you hand over to in house employees, it’s quite a steal.