Tue Jan 02 2024
5 min read
America's Best Contract Staffing Services 2024
Companies may not need a full-time employee for many projects. This is where contract staffing plays a role. In this blog learn what contract staffing is, what its advantages, its kinds, the difference between permanent and contract staffing, and the drawbacks of contract staffing.
Many times, companies only need short-term employees for projects. This happens especially when the project is short-term. In such situations, contract staffing firms provide the companies with employees depending on a contract of service and not a contract of employment.
Many companies need a lot of employees for a short period. The best example of this can be seen in malls or shopping centres on Saturdays and Sundays or during the holiday season. The manners need a lot of working staff, but only for the festive season or on weekends. The people who work during this time are mostly chosen through contract staffing firms. Let us see further regarding the same.
What is Contract Staffing?
Contract staffing involves recruiting employees depending on a contract of service rather than a contract of employment, mostly to fulfil the short-term needs of the company. These employees are to work only for a specific time or until the end of a certain project. Contract staffing has three main elements:
- There exists a third-party agency in the process of providing these employees to the company. The contract staffing firms are these third-party agencies. They assign the employees to the company.
- The period of employment is fixed. The employees are expected to work for that time only. This period is mentioned in the contract of service between the company and the employee.
- There is a ‘contract of service’ and not a ‘contract of employment’. The contract of employment creates an unnecessary burden on the company. The company cannot afford to provide full-fledged employment benefits to contract employees, as they will be with the company only for a short time. Hence, a contract of service is made by the contract staffing firms between the company and the employee.
How Does Contract Staffing Benefit the Company?
Contract staffing can prove helpful to companies in many ways. Following are the points through which these can be useful for the company:
Puts a Leash on Risks and Liabilities
If a company fails to follow all the legal bindings related to contractual employment, like taxes, social responsibilities, and similar, a lawsuit can be initiated against them. Thanks to contract staffing firms, these legal formalities are handled well. When you employ contractual staff through a contract staffing firm, the firm handles the contract as well as the legal formalities that might have troubled the company otherwise.
Availability of a Huge Talent Pool
Contract staffing firms tend to find the best in the market to supply the companies. To find the best staffing firms, interview multiple people, conduct multiple kinds of research, and analyse the market in depth. This allows them to get their hands on some of the finest and most talented employees to supply the companies. This also creates a pool of talented workers for the contract staffing firm. The company can easily pick what it wants from this large talent pool.
Speedy Hiring
The contract staffing firms have multiple employees ready to work for the company on a contractual basis. This skips the lengthy procedure required while hiring an employee and provides quick hiring for the company. This can prove helpful for companies that want to increase their working staff on short notice and even for start-ups.
Availability of Special Skills
Contractual staffing firms have employees with specific skill sets that the company may require for a particular project or position in the company. They guide and perform for the company according to the benefits they were expecting from the contract employee. Hiring an employee is itself a tiresome job. However, hiring an employee specialized in a skill can be even more difficult. Hence, companies, as well as start-ups, greatly benefit from this feature of contract staffing firms.
Cuts Costs
In general parlance, companies look for individual contractors to appoint non-permanent employees. However, these contractors may cheat the company with higher costs as the company is not aware of the labor costs in the market. However, with contract staffing firms, the company is made aware of the market rate and its rate. Many provide huge discounts for regular customers. They have a clear payment system and invoices.
Beyond Geographical Boundaries
Many contractual staffing firms have the facility of providing for contractual employees beyond a particular area. These contract staffing firms have a large network through which they can provide for employees from all over the world.
Provides for the Short-Term Needs of the Company
The word contract staffing itself indicates that the employment of the workers is for a specific project or period. Many times, companies only need short-term employees for projects. This happens especially when the project is short-term, or there is an unforeseen rise in demand about which immediate hiring is necessary. The contract staffing firms fulfil this need for the company in minimal time.
How Does Contract Staffing Differ from Permanent Staffing?
Contract staffing and permanent staffing are as good as opposites to each other. Let us see the differences one by one:
- The very first and primary difference between these two is that in contract staffing, the employment of the staff is for short-term and flexible periods. Whereas in permanent staffing, the employment is for the long term.
- Contract staffing firms act as third-party agents in contract staffing. Whereas in permanent staffing, there is no involvement of a third party as such.
- In contract staffing, a ‘contract of service’ is created, whereas in permanent staffing, a ‘contract of employment is created.
- The persons employed on contract are not entitled to any employment benefits. Whereas the permanent employees are entitled to benefits like the public provident fund, yearly leaves, and any other schemes created by the government or the company itself.
- The contract staff is remunerated on a daily or weekly basis. Whereas the permanent employees are remunerated on a full-time basis. They are mostly remunerated monthly.
- Contract staffing firms make the hiring process for contract staff faster. Whereas permanent staffing needs much more time and a longer hiring procedure.
- Contract staffing should be regular. Whereas permanent staffing needs no rehiring again and again.
Factors to Consider Any Contract Staffing
There are many factors to consider before going to contract staffing firms for employees. These factors are:
- Define the needs of your company. Check why the company needs contract employees. There are specialized firms for every need. Visit them accordingly.
- Compare permanent staffing and contract staffing for your needs. Check which one will be more suitable for the company’s needs.
- Analyze the contract staffing market carefully. Research the rates and approach the contract staffing firms that provide the best deals.
Drawbacks of Contract Staffing
As every coin has two sides, contract staffing also has positive and negative sides. Let us take a look at them:
Inclusion of a Non-Compete Clause
The non-compete clause restricts the employee from working with other similar or competitor companies in the market. It can include companies in a certain geographical area. The company does this because of a fear that the employees might disclose the techniques or strategies to their competitors. However, this hampers the growth of the employee, and the contract staffing firms cannot do much against this.
It Cannot Satisfy the Need for Permanent Employees
Contract staffing is a temporary solution to the short-term needs of the company. But the company needs permanent employees to rely on. Contract staff needs to be explained regarding the work and project from the very beginning. Whereas permanent employees need not be explained frequently about their work as they have been with the company for a long time.
Guarantees No Professional Stability
Contract staffing is a short-term function. Hence, the business sees no stability in its employees. The contract staffing firms cannot guarantee whether they will be able to provide the same employees for the same purpose again. This is one of the biggest downsides of contract staffing.
Types of Contract Staffing
There are various types of contract staffing depending on the type of contract the contract staffing firms have with the company. They are:
- Part-time contract: In this type of contract staffing, the employee agrees to work specific work hours. They are to work for a specific number of hours and are paid accordingly.
- Fixed-term contract: In this, the employee must follow some terms and conditions. This is generally true in the case of company projects.
- Zero-hour contract: In this, the employee is not bound by any conditions or working hours. The only condition is that the employee needs to be present on call for the company. Generally, this happens when the company needs extra employees or wants to hand over some work. The employees have no other restrictions. They can look for other jobs and opportunities.
- Agency staff: In this case, the employees work for a company but get their pay from the contract staffing firms. They are the employees of a contract staffing firm, not the company.
Experience the tailored precision of our contract staffing services, where the seamless integration of direct hire and permanent hire options ensures a workforce solution precisely aligned with your business needs.
Final Thoughts
Looking at the points, we can say the best contract staffing agencies have a bright future. This is because companies look for risk-free and liability-free hiring nowadays. The lower the liability, the fewer the complications in the company. Contract staffing not only provides fast hiring but also adept employees to the company as per their needs. Hence, there are sure to be happy days for contract staffing firms.
Pitch N Hire provides a platform where you can find a source for top-notch professionals through our online contract staffing firm. We will help you trim excess staffing costs and provide you with efficient contract staffing that will not disappoint you. So, give us a visit today.
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