The staffing industry in India and globally has grown manifold especially after the worldwide recession of 2008-2009. As per the Indian Staffing Federation, the apex body, India’s flexible workforce is expected to double by 2021. It is to be noted that India’s flexible workforce increased at a compound annual growth rate of 16.3 percent to 3.3 million in 2018 compared with 2.1 million in 2015. In this way, India became the fifth-largest market globally in flexible staffing in the year 2018. It is estimated that by 2025 about 10 percent of the total workforce in India could be working in flexible mode through the staffing companies.
However, the outbreak of the pandemic Covid-19 brought slight decline in the speed of staffing, but it is again going to pick its pace. The pandemic has brought several new changes at the workplace, in the manner of functioning and the nature of work. All these changes are here to stay even after the pandemic has subsided. And one of the trends that is here to stay and prosper is temporary staffing.
Temporary staffing is a new mode of hiring employees which is in contrast to the traditional hiring of permanent employees. Freelancers, contractual workers, part-time workers—all are included in the category of temporary staffing.
Factors Influencing the Growth of Temporary Staffing in India
1. The establishment of several small and medium enterprises, start-ups and the arrival of MNCs in India have created a favourable environment for the growth of temporary workers. The creation of job opportunities and their fulfilment with the right talent can be easily met through the concept of temporary staffing.
2. Companies and SMEs do not find hiring permanent employees financially feasible to work on short-term projects or for stipulated time period. Their business liability gets reduced as they do not have to arrange for employee benefits or medical facility. For the temporary worker on the other hand, it gives them the flexibility to choose the kind of work, the client and most importantly the ease and convenience of working at their own pace.
3. New tech-say ways of hiring temporary staffers have arrived on the global platform. These days, several job portals are available in the markets which have the database of aspiring temporary workers. Companies can easily search for the right talent for their projects through these portals. Another way is that of liaisoning with HR Solutions agencies which are capable enough of arranging for contractual workforce for your project on an urgent basis.
4. The outbreak of Covid-19 globally has brought in the concept of hybrid or remote working in practice. This has enabled individuals especially women to take up temporary jobs and ensure work-life balance. Moreover, companies are also giving preference to temporary staffing as it helps them to tackle the global economic crisis in a better manner.
5. Temporary staffing allows companies to reduce their cost in hiring, training and providing benefits to their new employees. It also helps to reduce workload on permanent employees in times of heavy workload.
The year 2021 and the future ahead is bound to witness phenomenal growth in temporary staffing. With the pandemic still lurking around creating uncertainty in the business environment, companies are bound to look for ways to complete their projects at minimal costs. And hiring temporary workers is the best way to handle the present economic crisis at the work front.