Increasingly, businesses are focusing on developing strategies that include a dynamic mix of full-time employees and highly qualified temporary workers. It allows any company or business to scale up or reduce its workforce as a service depending on the moment's needs.
A conventional employee's perspective was a permanent job with a scheduled 9 to 5 routine, but times have changed. There have been changes in both couples' work schedules, and in certain circumstances, one partner may be able to work a flexible working hours job due to family difficulties.
The Indian Staffing Federation (ISF) predicts that the Flexi staffing will expand by 2021.
According to temp work agencies, eCommerce companies like Flipkart and Amazon have been the frontrunners in temp recruiting. Furthermore, established firms trying to save costs and start-ups looking to hire CEOs for a limited time are leading the way in using temporary workers.
Retail, logistics, FMCG, and IT industries have all seen a surge in demand for Flexi-hiring. In India, some multinational corporations employ up to 40% of their workforce on a contract basis.
The industry's future will be more technologically driven. With each passing year, more and more businesses have realized that they would be confronted with innovative and new technology. As a result, they require people with specialized skills to keep up with the rapid technological change.
A Flexi-staffing plan is the most significant way to hire specialist workers based on project needs without spending a lot of money. Employers can save money on medical benefits, sick pay, pensions, provident funds, and other income perks when employers hire contract workers in India. When a short-term necessity exists, it makes sense for businesses to take advantage of temporary staffing benefits.
There is great potential in temporary staffing, and the Flexi staffing business is here to stay.
It is one of India's fastest-growing job-creation engines, with over 9 million young people expected to join the organized labor over the next 20 years.
People with expertise in AI, big data, cloud, and other emerging technologies, on the other hand, prefer to work in the gig economy rather than as full-time employees. Working hours, remote location, employment role, and even salary are all benefits they receive.
Staff augmentation companies in India are increasing at a rate of 25-30% per year. The New Wage Code will help it develop even faster. The Wage Code is an Act of the Indian Parliament that aims to simplify labor rules relating to wage and bonus payments. The Salary Act established minimum wages depending on regions and prompt wage payment for all workers in India's organized and unorganized sectors.
This would aid in the organization of the payment structure for temp work from home jobs, hence boosting the number of workers ready to participate in the Flexi-hiring model. With the modifications in labor legislation, organizations and employers that were previously unsure about temp staffing would now adopt the plan.
How does a Temp Agency work?
If your firm needs to hire a significant number of people in a short period or wants to benefit from just-in-time hiring, you should understand how a temp work agency operates. A temp agency is in charge of screening, employing, checking references, and paying the employees they send to a company.
They will operate as the worker's legal employer, while your company will be responsible for paying the staffing company a specified rate per hour. The employment agency keeps a portion of the payment and gives the remainder to the employee. The agency is also in charge of payroll and tax administration for its temporary employees.
Ways to hire flexible staff:
Temporary resource agencies
Employers use temporary resource agencies to find personnel for a specific length of time. The employer, not the agencies that supply them, is responsible for paying the workers.
Workers in this situation work for a resource provider on contract who provides the employees' services to another client or company. Because the workers are his employees, the subcontractor is responsible for paying their salary. After the job is over, the workers return to the subcontractor, subsequently dispatching them to another client's new location.
Advantages of Flexi Staffing:
No strings attached
Employers find it easier to recruit some employees as part of their flexible staffing idea because it is simple to let them leave after the intended work is completed.
This allows them to hire the best individual for the position while avoiding being in a legally binding situation where the personnel is treated as an employee of the company and thus eligible for various perks.
Development of a company
Employers are also pleased to hire a staff member because they have begun to recognize the concept's multiple advantages. Employees are happier, which makes them more focused and competent at work, leading to the company's growth and development.
Reduces unnecessary overtime
If a corporation wants to avoid wasteful overtime, hiring people only when needed is a must-have notion. It simply assists in satisfying a company's varying demands as required. As a result, a company does not have to ask its permanent staff to work extra.
Improves company's position
This option gives you complete control over your personnel. Because the firm can strengthen its competitive position in the market, the competitors have a rigid labor structure that makes them vulnerable to economic lows and highs.
Companies can experiment with potential employees
Several businesses can benefit from hiring individuals they believe will be advantageous to their operations. They then observe their work for a set length of time, which they call a testing phase.
They are employed as permanent employees if they are determined to be suitable, and it is also easy to fire them if they are not.
When a company sets a plan to hire both full-time and part-time employees, it may easily convert fixed costs to variable costs by only paying for what it needs at the moment.
The organization also saves money that it would have to spend if permanent personnel was hired and trained.
Easily accessible specialists
If a corporation is inflexible in its ideals and only hires permanent employees, it will not handle any unexpected needs that may arise. Some freelancing projects may demand the services of an expert. If the company is open to flexible employment, it will be simple to hire the right individual for the job and then fire him when his freelancing services are no longer necessary.
Improves employee retention
Having a mix of full-time and part-time staff might buffer a company's core personnel amid layoffs. They are measured on satisfaction, engagement, and job security, contributing to a higher employee retention rate.
Temporary workers and Flexi-staffing services will continue to be in high demand. This blog explores what the future of Flexi-hiring and temp agencies will entail. Also, what your company should do if it intends to deal with a temporary staffing firm.