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Temporary Staffing Slowly Gaining Momentum Among Indian Companies

Over 90% of blue collar staff are temps hired from smaller firms that may not comply with laws.

Published: 14th December 2015 03:44 AM  |   Last Updated: 14th December 2015 03:44 AM   |  A+A-

BENGALURU: Temporary staffing, or just staffing as it is known, has been rising in prevalence among Indian majors that otherwise did not hire the temps as the temporary staff are known.

Earlier, it was only the multinational companies (MNCs) that hired temps, for the period of a project or a season. Now, Indian companies too have warmed up to the idea of hiring temps, and many of them from the staffing majors like TeamLease, Adecco, Randstad, Manpower, Quess among others.

According to Sudeep Kumar Sen, AVP - staffing and recruiting, TeamLease Services Private Limited, “There is a spike in demand for temp staffing during the festive season. It coincides with the local festivals of each region when there’s a lot of buying.”

They could be for jobs like billing, display staff with retailers among others. They are hired by FMCG companies and electronic goods manufacturers that need staff to be at stores to demonstrate the products. Even the BFSI (banking, finance services and insurance) players are in need of people during a festive season when the demand for their services spike.

The biggest demand is from consumer durables with about 20-25 per cent, with BFSI being second, followed by telecom and agri-based sector which meets 10-12 per cent of the demand.

The companies go for contractual staff, added Sen, they do not want to be laden with excess staff at the end of the season. Temping companies, who are third parties, take care of accountability and compliance, and hence they are a blessing for companies that are in need.

As organisations have opened up to project outcome-based agreements, retention of projects is subject to deliveries and this is how you get outcomes, rather than through contractual staffing, believes Sen.

When firms have the need for about 100 people for a short period, it’s always better to hire from compliant firms like TeamLease. TeamLease is in the process of going in for an IPO.

Temp Staffing.jpgThe acceptance of organised staffing may be gauged by the pace of growth of the industry that’s growing at 12-15 per cent per annum.

“Earlier, MNCs in the software and technology sector hired temps, and now even Indian IT majors like Infosys have warmed up to the idea,” said Kris Lakshmikanth, Chairman and Managing Director at The Head Hunters India, one of the top executive search firms in the country today.

For foreign FMCG companies like HUL and P&G too it’s easier to hire people through staffing firms locally. Else, it will have to follow the guidelines and compliances of its parent and thus end up taking time. Hence, they found it more convenient to use temporary staff.

FLEXIBLE WORKFORCE

■ 1.5 million of 7.5 million temps are from organised staffing companies

■ The industry is growing at 12-15 per cent per annum

■ Consumer durables, banking, financial services and insurance  are chiefly in need of temporary staff

■ TeamLease, Adecco, Randstad, Manpower and Quess are the major players in the sector

While global majors like Adecco, Randstad and Manpower have standards to follow set by their parent, the smaller staffing firms need not comply or be able to comply for various reasons.

According to Lakshmikanth, 90 per cent of the blue collar staff are temps, and most of them are hired from smaller firms that may not comply with laws as many a contractor gets the contract with political connections.

Only 1.5 million of the 7.5 million temps are said to be from organised players.

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