Interim managers and Temporary staff

In the next coupe of years, enterprises across multiple domains in Indian will have at least 3% of their work force hired on a temporary basis. Temporary staff is the solution found by many organizations to meet talent shortage, work load fluctuation, multiple projects for a short duration within core strengths of the Company and all finally leading to ease cost pressures.

Already there is a trend existing in India of ‘Interim-management’ or ‘interim-manager’ where a superannuated professional from a leading Company undertakes to streamline the systems and activities of a functional area say Marketing or Supply Chain Management or Production Planning or IT for mostly a medium sized organization (large companies not excluded), simultaneously training and grooming the potential candidate identified by the current employer so that after a period of 3 to 12 months the trained employee can handle the activities of that functional area. The Professional is hired by the medium sized company on contractual basis for a fixed term during which the potential candidate must be able to handle things all by himself. The interim-manager’s compensation and other terms and conditions are fixed at the time of signing the contract.

Lower costs, higher employee utilization, talent flexibility and better quality are the factors that drive the global contract staffing industry, currently pegged at a whopping $140 billion.

Though, employees leasing is yet to gain in India, it has grown substantially in the past couple of years. Temp staffing as it is commonly known among HR professionals is becoming a preferred way of hiring specially in a scenario where talent has become scarce and expensive. In the next couple of years, enterprises across multiple domains in India will have at least 3% of their workforce hired on a temporary basis.

Temp staffing is going to be increasingly used as a mechanism to offset price pressures. Contract hiring is definitely on the rise not just because of currency fluctuations but also as means to access quality talent. With contract staffing, companies have control over output and cost of hiring. On an average they can save around 25-40% depending on the nature of the project.

A CEO of consulting firm says that model will increases staff utilization by at least 4%. Contract staffing in IT is not strategic, but more a tactic to fulfill just in time requirement to hire.

Contract hiring also helps recruit specialized staff. We do contract staffing to get specific skills that we might not need for a long term. In such cases cost may either go up or down depending on the project. It might not always be a cost advantage.

Apart from traditional IT, verticals like infrastructure and pharma are going in for temp staffing. It’s a matter of time that companies across verticals explored its benefits. A large number of working population will come from this segment.
Contract staffing will become a common practice among Indian companies. Youngsters are increasingly looking at flexible work position. The trend will gain further momentum with more young and trendy people joining the talent pool.

Interestingly, the current permanent to temporary employee ratio is 50:50 in the US and Europe, from 70:30 a few years ago. It is currently under 10% in India while HR experts say it will go up by another 5-10% in the next couple of years.

So, are temp staffers happy? A few companies are looking to convert its service contractors on a permanent payroll. But again, employee leasing comes with a flip side. Under a contract scenario, fake resumes are pretty rampant, when compared to permanent employees.

  • uday

    i had worked in a hospital from 1998 to 2002 on temporary post.after 89 days they give me the one or two days break.and rejoined me.after 4 years they discontinued my service.can i claimed for confirmed post as per 240 days law.