“Human Resources aren’t a thing we do. It’s the thing that runs our business.”
– Steve Wynn, Wynn Las Vegas
The procedure of initial recruitment, hiring, positioning & efficient supervision of employees in an ongoing organization is termed as staffing. This department of a multi-national company holds immense value because it forms the basic workforce of an organization and ensures proper maintenance, continuance and perpetuation of growth and progress.
Introduction about Staffing Concepts in India
The primary aim of staffing industry is to field individual employees in temporary positions or temps that help associate with massive contracts from around the world. A third-party involvement with an organization that is not on the payroll of the company – is called temp; which acts as a temporary worker. In other words, a temporary work agency, temp agency & temporary staffing firms seek workforce.
On the other hand, contract staffing is in need at times of excessive workload to divide the work pressure and prevent morale from failing. It can also be used for projects which are lowly-invested or on hold.
With upcoming technology and reforms in management systems, various organizations from across the globe are now opting for hiring workforce via employee staffing firms – establishing a distinctive norm within global companies.
Following are the reasons for why staffing should be adopted by an organization;
- To enhance focus division between the management functions and processing of the business.
- Proper and efficient recruitment lacking hassles and chaos.
- Quality trained employees and well-awareness of emerging markets.
- Allows flexibility to the firm / organization.
- Long-term cost advantages.
- Effective benefits of scale.
- Reduces the requirement of administrative overhead bodies.
- There is no permanent employment which is why the organization does not take it as a liability.
Factors affecting staffing industry:
Fast-paced market changes demands dynamic adaptability towards the same. However, the major defiance faced by the staffing industry is keeping up with the shrinking workforce or firm labor laws. Below are certain factors that impinge this industry:-
- Decrease in birthrates leading to a drop in the quality of young manpower – a demand for each and every type of organization.
- Economic cycles directly affect the entire inner-functioning of an organization by either curbing costs or adding-on furthermore.
Reasons why Contractual Staffing is on Rise in India
In India, multinational companies along with domestic corporate are intrigued by concept of contractual staffing. They prefer hiring temps and outsourcing basic recruitment through various staffing organizations and institutions’.
- Speeds up the procedure of recruitment.
- Widens the opportunity to pull out better and younger talent.
- Helps manage time and effort investments for distinctive aspects of the company.
- Unlike permanent employment, there is no mishap or drama caused in times of accountability irrespective of the circumstances.
- Helps keep up with the target market by keeping track of what’s trending.
Why are regulation and licensing important?
Contract workers or flexi-staffing is known for being the job-initiating portal in India, targeting out to the upcoming and fresh talent, to form an efficient workforce for distinct organizations. Each legal code of conduct has loopholes and shortcomings, significantly from the staffing industry. For instance, lack of clarity on prominent issues like management and responsibilities of staffing agencies and the user organization is a major obstacle. Also, workers are engrossed in unorganized with pure absence of labor laws to protect them.
- It maintains peace and harmony in the work environment.
- It enhances the quality of work by the employee by following rules and regulations.
- It betters the involvement of workforce in organizational matters and triggers honest efforts from their side.
- It conforms efficiency of the company from within and overt the outside world.
- Helps form a collaborative and healthy recruiting procedure to follow for the long-run.
- It effectively entails the class of employees to be assigned specific work, their responsibilities, and coordination within the team (amongst each individual).
- Attracts more individuals and activate a sense of encouragement.
- Provides a better feedback to the government in context to the policies that have been or need to be reformed in the best of public interest.
- Ensures basic workforce rights’ like social security, insurance facilities and ensure fair parity in remuneration for the flexi staff and other employees.
Henceforth, with a plethora of policies & norm related initiatives of the government – the market of temporary staffing and contract staffing is bound to increase, leading to massive expansions in variant businesses. This makes it an initial phase which gives the entire industry an opportunity to enhance their power and gain the best of their potential to reach new and progressive heights.