Why do Companies Use Temporary Staffing Agencies?

About temporary staffing

A Temporary staff works with a company on contract basis, is on the pay roll of the third party i.e staffing company. Temporary staff’s duration in a company depends upon the contract between the company, staffing agency and the employee.

The employee gets the pay slip in name of the staffing agencies. The number of temporary staffing is increasing at a greater speed

Earlier the low skilled workers were hired as a temporary staff but now companies are hiring well qualified high professionals with wide range of educational background also as a temporary staff.

Today Indian companies are hiring temporary staffing at a faster speed than ever as the Indian companies are getting recognized about the value of temporary staff.

temporary staffing

Through a research it is found that industries from field of telecom, manufacturing, IT, hospitality, retail, agriculture and pharma have increased their number of temporary staff compared to permanent staff.

There are many staffing agencies all over the country that help the companies by providing temporary staff.

Staffing agencies act like a helping hand to the companies in the process of hiring. By hiring temporary staff companies are not in need of full time employees.

Some of the common reasons of hiring temporary staff

  • Special project
  • Seasonal project or work
  • Employee shortage
  • Employee absence due to sickness, maternity, disability, vacation, sudden death

Advantages of temporary staffing from employee’s point of view

  • The employee gets the chance to work with the company and gain experience.
  • Employee gets a corporate company name or a big company name on resume. This is a plus point for employee. The employee gets a certificate from the company about the work experience and for the duration worked.
  • Most of the temporary staff is selected on the basic job role or from the starting position, so he/she gets the thorough knowledge about the job right from the start.
  • If hired for short term period in place of a permanent employee and if the permanent employee does not rejoin on the joining date. The temporary employee may get a chance of getting promoted as a permanent employee.

Advantages of temporary staffing from employer’s point of view

  • Companies can terminate the temporary staff at any point of time or whenever the project is completed.
  • No need to give any facilities like medical insurance, travelling allowance, gratuity, bonus, PF, sick leave, dearness allowance etc. to temporary staff.
  • Hiring temporary staff is like cost cutting for company.
  • No need of providing any motivation or performance evaluation to the temporary staff.
  • Rather than giving training to the permanent employee, companies hire temporary staffs that are already trained and skilled in a particular project. By this they save money and time.
  • If the permanent employees are offered training on a particular project there is no guarantee that they will remain in company for longer term. So here temporary staff is first choice.
  • Can offer less salary as compared to the permanent employee.
  • Hiring is more flexible.
  • Temporary staff lets the employers remain in business at the crucial time and makes easy to achieve the business needs.
  • Companies don’t have to spend time on the hiring process as the most suitable candidate is hired by the staffing agencies itself. The staffing agencies take all the responsibility of the HR like recruiting, testing, screening resumes etc.
  • Even the companies save cost on the advertisement of the job.
  • By hiring a temporary staff the employer gets a chance to see the capability and performance of the employee before granting them as a permanent employee. If the temporary employee’s performance is poor the employer has right to terminate anytime.

Disadvantages of temporary staffing from employee’s point of view

  • Every time insecure about the job as it is a temporary job.
  • No benefits and no right to ask about the yearly leaves.
  • Temporary staffs are not treated well in a company by colleagues or by boss. As they are doing temporary jobs many subordinates think them as a dumb.
  • The staffing agency gets some commission from the salary of the temporary employee. So the employee gets less pay compared to permanent employee.
  • It may affect the career if worked with two three company as a temporary staff.
  • Disadvantages of temporary staffing from employer’s point of view
  • Temporary staff may be less motivated and less energetic
  • Temporary staff may not be as per the standard of the company or may not be as per the requirement of the company. The company may have to interview again and again the temporary staff till they find the right candidate.
  • If the company gets the same project for which they hired the temporary staff in past, they again have to look for the skilled and unskilled employees and train them, which is time consuming.
  • The employee will not be sincere or serious towards the job.

There are much benefits of hiring temporary staff than the permanent staff. Even today people wants to work as a free agent instead of getting tied up as a permanent employee with a particular company for a long time.

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