With the pandemic having impacted businesses badly and little visibility on the course of the recovery, companies are playing it safe by adding more temporary staff rather than taking on too many permanent employees. Although this relates primarily to entry level positions, they’re using this approach to recruit for some senior roles too.
According to Alok Kumar, senior director, Manpower, such senior professionals are taken on as consultants for specific projects for a specific period. “It applies to roles where the deliverables are well defined and results are quantified. These professionals earn a remuneration in the form of a commission,” Kumar said.
TeamLease Services believes temporary hiring could double in 2021 over 2020 levels going back to pre-covid levels, according to Deval Singh, Business Head, (mobilization) who says this is the result of managements tweaking their business models. “Companies are still facing uncertainty and are trying to minimise costs. With temporary hires, they get a pool of talent that can be tested and later absorbed in permanent positions if it’s needed,” Singh said.
Kumar observed that in the current scenario, companies are looking flexible staffing model and can be scaled up or down depending upon conditions in the market and the economy. “Through staffing companies they also gain the expertise to handle complex requirements. Especially at the entry level, where the churn is higher and managing the life cycle of an employee becomes costly,” he explained.
Covid-19 has forced companies to re-invent themselves to come up with new business models and that is pushing companies to experiment with temporary staffing. Experts say it is safer and wiser to recruit for the short term rather staff the company with permanent employees. There are several new formats emerging , they point out, and it’s best not to overload the team with permanent staff.
