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What is the Future of Temp Hiring in India?

What is the Future of Temp Hiring in India?
March 14, 2023

Temp hiring, also known as temporary staffing, refers to hiring employees for a specific period, generally to fill in for short-term workforce requirements. The future of temp hiring in India is promising, with a growing demand for temporary workers across various industries.


The temporary staffing market in India has grown at a compound annual growth rate (CAGR) of 16.3% in 2022. Temp hiring in India is becoming the increasing trend of companies opting for flexible staffing solutions to meet their dynamic workforce needs. 


Additionally, the economy's emergence and the rising popularity of remote work are expected to contribute to the growth of temp hiring in India. The article will discuss temporary hiring along with its current trends and future prospects.

Defining Temporary Hiring & Its Benefits

Temporary hiring allows companies to meet their dynamic workforce needs while minimizing costs. Temporary workers are usually paid hourly or daily, so companies do not have to incur the long-term costs of hiring permanent employees. Let’s have a look at the benefits of temporary hiring:

Manage Workforce

Temp hiring allows companies to quickly scale their workforce up or down per their requirements, making it a flexible staffing solution. This way, temporary hiring offers flexibility to both the companies and the employees.

Manage Labor Cost

Companies may save money by avoiding the expenses associated with full-time employees, such as health insurance, retirement benefits, and paid time off. Temporary workers are typically paid hourly or on a project basis, which can help companies manage labor costs. Temporary and contract staffing generated $2.8 Million in revenue in 2022 per week.

Benefit the Employees

Temporary hiring also benefits employees as it allows them to gain experience and exposure in different industries and roles. It also allows them to develop new skills, enhancing their employability in the long run.

A Look at the Current Trends of Temp Hiring in India

The staffing industry in India has witnessed a significant surge in new employment in the fiscal year 2021-22, with a YoY growth rate of 21.9%. This is a sharp increase compared to the previous year's growth rate of 3.6%. 

Here are some trends of temp hiring in India:

Demand for Temporary Workers

Many businesses in India opt for temporary workers to meet short-term requirements or manage seasonal spikes in demand. This has led to an increase in demand for temp workers across various sectors.

Flexibility and Cost-Effectiveness

Temporary hiring offers businesses flexibility in staffing and is more cost-effective than hiring full-time employees. This is particularly beneficial for startups and small businesses that may not have the resources to hire permanent employees.

Gig Economy

The gig economy is gaining momentum in India, with many individuals opting for temporary or contract work to earn a living. This has led to new platforms and marketplaces that connect gig workers with potential clients.

Digital Transformation

The COVID-19 pandemic has accelerated the adoption of digital technologies in India and impacted the temporary hiring market. Many businesses are now hiring remote temporary workers, and this trend is expected to continue even after the pandemic subsides.

Exploring the Potential for Future Growth in India's Temp Hiring Industry

Despite the challenges faced by the temporary staffing industry in India, the sector managed to record a modest growth of 3.6% at the end of the fiscal year 2020-2021 compared to the previous year. Here are some potential growth in India of Temp hiring industry


The temporary staffing industry's growth in India can be attributed to the rising demand for a flexible workforce among businesses. Companies are increasingly seeking temporary or contract workers to meet their staffing requirements, which allows them to adjust their workforce size and composition quickly based on changing market conditions.

Mitigating Job Losses

The temporary staffing industry was crucial in mitigating job losses during the pandemic. The industry helped many workers stay employed by providing temporary employment opportunities and supporting their families during these difficult times.

Lack of Regulation

One of the significant challenges facing the temporary staffing industry in India is the lack of a comprehensive regulatory framework. The absence of clear rules and guidelines has led to the emergence of unorganized players in the market, which can result in the exploitation of workers and non-compliance with labor laws.

Focus on Compliance

To address the industry's challenges. There is a need for a greater focus on compliance and adherence to labor laws. This would benefit the workers and help the industry gain more trust and legitimacy in the eyes of businesses.

Increasing Demand

With the rise of the gig economy and the increasing need for a flexible workforce, the demand for temporary staffing services in India is expected to grow in the coming years. This presents a significant opportunity for the industry to expand and mature further.

Understanding the Challenges Faced by Employers & Employees in Temp Jobs

The industry still faces several challenges, including the lack of a comprehensive regulatory framework, compliance and governance issues, and unorganized players in the market. To address these challenges, the government has introduced several initiatives to formalize the labor market and provide social security benefits to temporary workers. 


With the right policies and regulations in place, the temporary staffing industry has the potential to become a major contributor to India's economic growth and development in the years to come. Temporary employment, also known as temp jobs, is becoming increasingly common in today's workforce. While it offers flexibility for employers and employees, some challenges come with this type of work. 


Temp jobs offer flexibility for both employers and employees, they come with their own challenges. Employers must constantly search for skilled workers and ensure compliance with employment laws, while employees in temp jobs face job insecurity, lack of benefits, and low wages.


Employers face challenges such as finding skilled workers, managing turnover and ensuring compliance with employment laws. A worker's average time in a temp job is 4.3 years, meaning employers must constantly search for new employees. Additionally, employers must ensure they comply with employment laws regarding wages, benefits, and workplace safety.


The future of temp hiring in India looks bright as it continues to be a popular practice for companies looking for flexible staffing solutions. The trend of temporary staffing is expected to grow in the coming years, driven by factors such as increased globalization, the rise of the gig economy, and the need for agility and cost-effectiveness. 


Moreover, with the Indian government's initiatives to formalize the temp staffing industry and improve working conditions for temporary workers, the industry will likely become more regulated and structured. This will increase transparency and accountability, boosting the industry's growth and credibility.

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