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Contractual Staffing - The New Normal In Business Sector

TASC Outsourcing
Contractual Staffing - The New Normal In Business Sector

Contractual staffing is fast gaining popularity in the business sector. All organizations, whether big or small are on the lookout for cost-effective ways of running their businesses. This is where contract staffing comes into the picture. It refers to hiring employees on short-term employment contracts rather than recruiting them as full-time permanent workers.

Contract staffing has proved to be beneficial for both employees as well as workers. The model of contractual staffing includes seasonal and part-time work, and independent contracts, and offers flexibility.

Why do employees prefer contractual staffing? 

Contractual personnel regulations allow workers to have more control over the type of work they are assigned. They have the liberty to decide the amount of work to be done at a specific time.

Instead of following a rigid nine to five working hours schedule, they can opt for a job that is more in line with their schedule and time. They have control over the nature of work and the workload given to them. Moreover, workers have the choice of specializing in one type of work or opting for a variety of jobs every day.


People working on contract earn a potentially higher income than those working full-time which is an added advantage.


What are the benefits of Contractual staffing for entrepreneurs?

Entrepreneurs find it easy to keep up with the changing market trends by employing workers on contract. They can hire people immediately for a short time to manage any urgent requirement that crops up from time to time.


Contract staffing brings down the labour cost-effectively. Let us understand this with a simple example. A relatively new and small organization may not require a full-time accountant as the amount of work may be less in the beginning. Hiring someone on a contractual basis for four hours a day makes sense as it will be economical for the company. This will ensure the completion of work without wasting resources that can be used elsewhere.


Full-time employees are entitled to many benefits according to labour laws. These can be avoided by employing contractual staff. Organizations can cut costs, increase their productivity and use a wider network, on-demand. Undoubtedly contractual staffing can make your business more effective, efficient, and positive.


Nowadays, businesses are increasingly moving towards hiring contractual staffing services to supplement their hiring process, particularly when they are searching for temporary staff for some specific work. Any organization on the lookout to engage a contract staffing firm should carefully consider the advantages and disadvantages before doing so. 


Contract staffing usually comprises three components:

  • A Contract for services, not for employment – When an organization uses contract staffing, they usually sign a B2B contract with the staffing agency which provides specific services. Instead of hiring the employees directly, they enter into a contract with the concerned firm that provides people as and when required.
  • Project-based Hiring that is not permanent – The company hires people for specific projects and the relationship continues for a fixed period of time. When the project is completed, the contract is automatically terminated. The staffing arrangements are not permanent.
  • A Third-party Agency – The contractual staffing agency may lend their staff for the specific project or engage someone else for that period. It becomes their responsibility to provide employees as and when required.

What are the advantages of a Contract staffing firm?


Contract staffing firm offers the following advantages:

  • Cost Saving – Entrepreneurs often hire independent contractors when they are looking for non-permanent hiring. In such cases, they may not have comprehensive knowledge about the prevailing market rates and other related details. A contract staffing agency has complete knowledge of labour market prices and has all payment arrangements and invoicing procedures in place. Moreover, the contract staff is not entitled to the tax and other benefits that the permanent employees get. They are paid for the number of hours they put in or for the specific project they have been hired for. This saves a considerable amount of money for the organization. 
  • Multiple Location Hiring – Companies usually have offices in multiple locations. Although the employer may have complete knowledge about the local market but not all the places where their offices are located. Moreover, when it comes to overseas offices, contract staffing agencies prove to be very helpful in providing experienced and skilled employees. Most of these firms operate over large areas whether nationally or internationally. 
  • Quick Hiring – Employing the services of a contract hiring firm saves a lot of valuable time because such firms have a complete roster of skilled workers who are available to start work immediately. The hiring process is a time-consuming job as it involves advertising, vetting, interviews, and many other things that take a lot of time. All this can be done within a short time by hiring a staffing firm that takes care of all these things and ensures that skilled professionals are available for the job. The time required to hire a contractual employee is considerably shorter than the process of direct hiring.
  • Coping with a sudden increase in workload – There may be times when the company is dealing with a sudden surge in work or an accelerated timeline that needs to be addressed immediately. Contractual staffing services immediately provide workers as per your requirement. For example, the hospitality sector often sees a huge surge in business during peak season and may require extra staff to keep up with the extra workload. Hiring a permanent employee is not the ideal solution as he may not have sufficient work after the season is over. Therefore, a temporary staff is a better and more viable option than a regular employee.


Wrapping up

Often, the businesses do not need all their staff to be full-time direct employees of the company. They may require temporary staff for various old and new ongoing projects. Contract staffing services prove invaluable in such situations. You can always use the money you save in other important areas of work and accelerate the growth of your organization. Try it out!

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