According to the Indian Staffing Federation (ISF), the flexi workforce is predicted to double by 2021. ISF’s “Impact Of Key Reforms On Job Formalisation and Indian Flexi-Staffing Industry 2019” finds that temporary staffing growth is expected to increase at a rate of 22.7% from 2018 to 2021, which will take the total number of ‘flexi-workers’ to 6.1 million by 2021.
Temp agencies said eCommerce firms like Flipkart and Amazon have been the frontrunners in temp hiring. Further, large companies looking to cut their staffing expenses and start-ups looking to hire executives for a short period are taking the lead in employing temporary staff. Other industries that have increased the demand in flexi-hiring are retail, logistics, FMCG, and IT industries. Some MNCs in India have up to 40% of employees on contract.
Flexi Staffing – Win-Win for Both Companies and Workers
The future of the industry will be more technology-driven. More and more organizations have understood that with every passing year, they will be facing advanced and emerging technologies. So they need employees with niche skills to accommodate the fast-paced shift in technologies.
A flexi-staffing strategy is the best solution for hiring a specialized workforce based on the project requirement, without investing a lot. Employers can save on medical benefits, sick pay, pension, provident fund and other income benefits when they hire temp staff. It makes sense for organizations to leverage temporary staffing benefits when there is a short-term requirement. Being a temp agency for more than a decade, Perito believes that the flexi-hiring model is great to hire ‘top talents’ without increasing headcount and staffing expenses.
Suchita Dutta, executive director of the Indian Staffing Federation, says “There is immense potential in temporary staffing and flexi staffing industry is here to stay. It is one among India’s fastest-growing job creation engine, in a country where for the next 20 years over 9 million youth would be added to the organised workforce.”
On the other hand, people with skills in AI, big data, cloud, and other emerging technologies want to be part of a gig economy rather than working as a full-time employee. They get ‘benefits’ of working hours, remote location, job role and even compensation.
New Wage Code – Boost for Temporary Staffing
Staffing companies in India are annually growing at 25-30%. The New Wage Code will accelerate its growth further. The New Wage Code 2019 is an Act of the Parliament of India that aims to rationalize labour laws concerning wage and bonus payments. The Wage Act has set minimum wages based on regions and timely payment of wages for all workers in organized and non-organized sectors in India. This would help to organize the payment structure for temp staff, thereby increasing the availability of workers who are willing to be part of the flexi-hiring model. Also, organizations and employers that weren’t sure about temp staffing earlier will now adopt the strategy with the changes in labour laws.
How Does A Temp Agency Work?
If your company need to hire a large number of workers in a relatively short span or want to reap the benefits of using temporary staffing, then you must know how does a temp agency work. A temp agency is responsible for screening, hiring, reference checking, and paying the workers they send to a company. They act as the legal employer of the worker while your organization will have to pay a set amount per hour to the staffing company. The staffing agency takes a percentage from that payment and pays the rest to the worker. The temp agency is also responsible for payroll and tax management for its temporary workers.
What to Look For in a Temp Agency?
When you are ready to work with a temp agency, here are some things to consider:
- Talent inventory: Does the company have a large inventory of potential candidates in different niche skills that can be hired quickly?
- Experience: Does the temp agency have expertise in your industry? What is their process in hiring temp staff for your domain?
- Hiring Process: Ask your temp agency what are the things that they will take care of during and after hiring temp staff? The company must do an initial screening, basic interview, background checks, reference checking, follow legal protocol, and work based on the New Wage Code.
- HR Administration: Will the temp staffing company handle the HR and payroll administration for the temp staff? The staffing company must handle all payment and HR-related work for the temp workers it provides to your organization.
- Communication: You must set clear expectations for the staffing company and your agency should also communicate everything at every stage for better results.
The demand for temporary workers and flexi-staffing services will continue to rise. This blog discusses what flexi-hiring and temp agencies of the future will look like. And, what your organization needs to do if you are planning to work with a temporary staffing company.