What is Contract Staffing?
A Complete Guide by KTRIAN
What is Contract Staffing?
Contract staffing services are basically when any business is willing to hire any individual on a temporary or contract basis for a specific duration, for working on a particular project or to meet a specific need. In contract staffing, the employee is not a permanent member of the company’s workforce. It is about hiring manpower on a contractual basis. The employment contract does not include a benefits package. Contractual employees are paid only for the hours they work. Contract staff are not entitled to health insurance, paid time off, vacation pay, and other benefits. Contract staffing is sometimes referred to as temporary staffing or contingent staffing.
Why to approach contract staffing agencies?
Let’s assume you are a business owner and running your business very smoothly, Due to unforeseen reasons, you are having a shortage of employees with some of the specific skills for short-time projects or irregular projects. Hiring a permanent employee might not be the best option for you as it can become costly for you. Obviously, you might think to hire the right freelancers who can make your work easy and should cost you minimum, but this process can take a lot of time. Here contract staffing agencies come into the picture, as they can help you find the right talent with the lowest cost possible along with the specific skills.
In the following blog, we will discuss the history of contract staffing services, types of contract staffing, and its benefits.
What is the history of contract staffing?
If we look into the brief history of contract staffing services, it has evolved since the early 20th century, and has become an essential part of the recruitment industry. Temporary workers were supplied by employment agencies and labor unions to meet temporary labor needs. With the passing of time, the contract staffing industry expanded its roots into various countries and across various industries.
Manufacturing industries witnessed a sharp expansion in the US. Many companies opted for the option of temporary workers who could be brought on for a short-term basis as per the seasons. This fruitful approach benefited many companies, as whenever there is any requirement that arises, just connect with the contract staffing agencies as needed, as contract staffing offers a pool of pre-screened and qualified candidates who are suited for your business or as per your requirements.
In the 1970s and 1980s, these services expanded beyond the manufacturing industry to include the financial, healthcare, and technology sectors. Cost-effective employee management strategies were one of the prime reasons for such growth in the contract staffing industry. The modern concept of the work-from-anywhere option and digital transformation has largely contributed to the continued evaluation of contract staffing services. Now businesses and companies can hire staff from anywhere in the world.
Now let us discuss the available types of contract staffing services.
Types of Contract Staffing
Part-Time Contract Staffing
For some companies that are willing to fill the temporary positions that only require 3-4 hours of work every day, part-time resource hiring is the go-to solution for them. This kind of approach is more popular in the IT, healthcare, and hospitality sectors.
Full-Time Contract Staffing
This type of staffing differs from the part-time contractual staffing arrangement. Many businesses are in need of qualified candidates on a full-time basis, but they are more concerned about the performance of the new hires. The company is not willing to spend too much money on onboarding a new employee who wouldn’t fit the company. As a result, the resources are hired on a temporary basis with the possibility of becoming full-time employees.
Fixed Hours/Project Based Contract Staffing
When you require employees to work a set number of hours, such as 10–20 hours per week, fixed-hour based approach can be useful. This staffing model is mostly used in roles like marketing, sales, web development, app development, and administrative support. It provides flexibility and allows companies to bring in the specific skills they need without committing to full-time positions, making it a practical solution for managing part-time or project-based work.
Modes of Contract Staffing
In-House Contract Staffing
These days, many companies opt for workforce models where 30–50% of the staff working on projects are hired on a contractual basis. These employees will be working on your premises alongside your permanent team for short-term needs, and can easily fit into your team, which will ultimately lead to the project success.
On-Site Contract Staffing
Few projects require product monitoring and its implementation, so companies adopt on-site contract staffing as it will provide people working on their sites.
Remote Contract Staffing
Contract-based staffing can become an ideal solution for the companies that are struggling to find the right skills locally, as it involves a lot of time and sometimes can be very challenging too. One can hire anywhere
from a country or even from offshore locations.
Benefits of Contract Staffing Services
Reduced Costs
Cost savings are the primary reason why companies opt for contract staffing services. Contract employment can be a cost-effective solution that helps employers control labor and various other types of costs. Employees who are hired on a short-term basis generally don’t receive the same benefits and perks as permanent staff. This practice allows employers to save expenses like medical insurance, payroll taxes, or retirement plans.
Flexibility
If you run any business or company, you should be able to quickly hire staff and scale your workforce. Contract staffing helps employers quickly adapt to fluctuating market conditions, varying business needs, or tight project timelines. An approach like this allows companies to bring skilled professionals on a temporary basis without making long-term commitments. One can hire anyone globally to work whenever it is required, so there are no time or location limitations.
Reduced Risks
When there is a need to hire contractors, contract staffing companies can play a crucial role as it can save you from risky situations. Staffing companies can handle all important tasks, such as vetting, training, and insuring candidates, and ensuring compliance with relevant laws and regulations. Such practice can protect businesses from legal or financial penalties.
Specialized skills
Some staffing needs require specific skillsets, particularly in the IT sector, and to get the correct people on board, it usually becomes a difficult task. With the help of contract staffing, employers can hire contract employees for specialized skills or expertise for projects that require specific knowledge or talents. Contract staffing allows companies access to professionals who have the skills that may not be available within their permanent workforce. This approach is particularly valuable for short-term projects, unique tasks, or when a quick injection of specialized knowledge is needed to achieve project goals.
Increased Productivity
When business owners can delegate non-core work, they can concentrate entirely on their specific project and oversee only the chores necessary to complete the tasks at hand. Contract staffing helps businesses in the form of increased productivity and the ability to focus on the strategy without interruption.
Conclusion
Contract staffing is beneficial for both companies and employees. Contract workers also enjoy the flexibility and exposure to other businesses. Their learning curve is severe, but there are many chances to pick up useful experience.
Contract staffing services mainly depend on project orientation or project duration. Contract staffing services are projected to grow in popularity as a result of the development of digital platforms and remote working options. Contract staffing services may be the best option for a business owner trying to remain competitive or for a worker needing to have control over their time and career.
