March 18, 2019 admin

All you need to know about Contract Staffing!

Ever felt that you are very passionate about a particular niche, but cannot develop in that because you already have too many things on your plate?

Well, yes, jobs today demand us to be versatile and have knowledge of multiple things.
But, having in-depth knowledge of a specific niche is also a thing today.
With the constantly evolving technology, there are particular tasks which require in-depth knowledge and years of experience.

So how would you get those high-end and specific tasks of a project done?
Don’t scratch your head. We are here to tell you exactly this.

Yes, you guessed it right. Contract staffing is what we are getting to!

A contract employee is an employee hired for a particular job at a specific rate of pay. These employees work under a contract for an employer. Contract employees are not a permanent addition to the staff.

So.. How does Contract Staffing Benefit your Firm?

This trend started with previous recessions. Contract staffing later declined post-recovery whereas direct hiring climbed.
Now, a fundamental shift that incorporates contract staffing as a permanent part of the workforce seems to have occurred.

The modern marketplace:

Technology is evolving at a rapid pace which is much faster than most areas of business. This evolution is creating a gap between institutional knowledge and market demands.

For example:

Oil and gas companies are vigilant about protecting proprietary exploration, extraction data, and drilling.

As these organizations move towards cloud-based applications, securing the data and shoring up network vulnerabilities is a top priority.

Meeting the requirements for expert talent to achieve these goals can feel like an impossible task.
Well, contract staffing services negate the full-time hire challenges by providing companies with immediate, experienced IT professionals.

As a recruiter, it’s your role to recognize the trends and meet the needs of your company.

Due to contract based hiring, companies can easily expand their core teams with lesser financial responsibilities compared to full-time hires.

Size of the teams can be modified to meet specific requirements, such as technical developers for early-stages and quality assurance and test engineers in later stages of the project!

Companies also benefit due to the deep expertise and can immediately apply this best-in-class knowledge to current problems.

In a candidate-driven job market, talent favor contract-to-hire placements so they can “test out” the company prior to accepting a full-time offer. This arrangement is beneficial for companies, too.

So while we are on it, here are a few more reasons to consider contract based hiring.

Benefits of Contract Staffing

Immediate joining date:

Bringing on contract talent is an efficient and quick process. Contract talent is usually ready to hit the ground running. Contract talent can shrink the onboarding time from months to days, providing immediate solutions that keep your company ahead.

Avoid over-staffing:

Organizations that adopt flexible, project-based staffing are also financially sound as they avoid overstaffing.
Continually evolving technology makes it difficult for companies to forecast future staffing needs.
Once the expert implements solution, there’s no need to keep expensive talent on staff for low-level maintenance issues.

Companies that expand with full-time hires are later left with a team that exceeds their budget. Working with a contract recruiter agency is a solution to this problem.

Establish a culture fit.

Is your company a desirable place for talent to work?
Professionals have two key concerns when evaluating full-time employers:
If the company will help them keep their skills fresh and will there be institutional barriers that prevent project success?

Top talent would not want their skills to stagnate. They’re careful about making full-time commitments and assure that the company’s internal culture aligns with external promises.

When your company requires a full-time hire but is struggling to get candidates to accept the offer, a contract-to-hire position may be the key to it.

A contract employee can “test” the company, so they are aware of the company culture. They can further accept your offer with confidence, positioning everyone for success.

Benefit from the employees’ experience and skills.

Contractors are more likely to have experience of working for multiple companies, which gives them deep skills and broad experience.
They are not only up-to-speed on the latest technology but also hold up practical knowledge for the same.
Contract employees bring a fresh, holistic perspective and provide innovative solutions that internal employees may not have considered earlier.
Contract talent is usually to hit the ground running!

So are you Ready to Implement Contract based Staffing yet?

Here are a few steps to start with it!

Evaluate requirements

Before hunting for contract employees, be clear about your internal needs, timeline and budget.
See if there is an ongoing need for specialized consulting, or is there a single project with a finite deadline.
Being clear about talent needs from the beginning of your project will set everyone up for success.

Be practical about costs.

Chances are that the contractors may cost you more per hour than full-time employees, but keep in mind that you’re paying for the exclusive benefits.
Contract staffing provides you with the flexibility where your company only pays for talent when it’s required, which leads to significant cost saving over a project’s lifetime.

Decide on the structure

Contract Employees typically work on an ad-hoc consulting basis or a contract-to-hire basis.
Depending on your company’s needs, you may benefit from these roles individually or may be best served by a combination of the roles, like a project-based team.

Hire a Contract Staffing Agency

There’s no need to go alone when it comes to recruiting.
Trust on contract staffing companies and their expertise to source, screen, and place top talent.
Experienced recruitment companies have the resources, and experience to manage clients needs, whether they require one specialized expert or an entire team.

Let’s go further with it and learn more about the steps included in the contract staffing process!

Steps to Contract Staffing

Estimating the required workforce:

The process begins with calculating the number and type of employees needed by the organization in the near future.

Type includes the qualification and educational background of the prospects. While assessing the same, the company should also make policy regarding a number of people to appoint from backward classes, women force, minority, etc.

Here is the process to estimate the requirement!

Workload Analysis requires finding number and type of employees required to perform various jobs designed in organizational structure.

Workforce Analysis means analyzing the existing workforce or employees already occupying the job positions and how many of them are overburdened or under burdened.

Comparison:
A comparison is made of both, workload and workforce analysis. Where an excess of workload over workforce indicates understaffing and whereas an excess of the workforce over workload means overstaffing.
And the employees are appointed according to the requirement.

Estimating Payment:

Time-based payment: salary/wages are paid on a daily, weekly or monthly basis.
Performance-based payment: payment is made to employees on the basis of the number of pieces or units produced by the employees.

Some pay plans also use time-based payment in combination with some incentives such as bonus, commission, etc.

Contract staffing empowers you to do something that is rarely possible in recruiting – prepare for the future.

So, do you think that contract staffing difficult?

Nope!  A misconception held by many recruiters that contract staffing is significantly harder than direct hire.
In reality, it is much easier to add this component than you may think. You can add contract staffing services to your business model without any hassle. And, if not do it yourself, you can always reach out to us here for your staffing needs.

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