The staffing landscape is fast changing with conventional permanent roles increasingly giving way to temporary roles across industries. Whether it’s manufacturing or service industry, companies are increasingly chalking out strategies to ramp up a temporary staffing workforce. For instance, India’s formal temporary staffing grew at a compounded annual growth rate (CAGR) of 16.3% in 2022. India’s temporary workforce count, which is around 5-5.5 million now, will likely reach 10 million by 2030, as per the President of the Indian Staffing Federation (ISF). Temporary staffing is defined by the name itself. It means filling up the workforce for short-term requirements. The economic surge and increasing popularity of remote work will likely help boost India’s temporary staffing ecosystem.
Check Out the Potential of India’s Temporary Staffing Ecosystem
India’s temporary staffing services have immense potential for growth despite challenges. These services are set to grow in the wake of the numerous luxuries it offers to companies and the contractual workforce. Let’s begin discussing the matter.
Flexibility
The rising demand for a flexible workforce among businesses is boosting India’s temporary staffing industry. Businesses are fast seeking temporary workforce to meet their various requirements. The luxury of increasing or downsizing the temporary workforce based on the changing market conditions is another benefit that will drive companies towards temporary staffing company in India.
Job Loss Mitigation
In tough times, temporary staffing services become crucial in employing a large workforce. An instance of this is the COVID pandemic where a lot of contractual workers were employed to take stock of various works.
Cost Savings
Organisations can save significantly when hiring a workforce on a contract. For example, permanent employees receive the benefits of health insurance and all other privileges. Something that can be saved with a contractual workforce as they remain with the company for a limited period. In certain cases, the contractual workforce remains on a variable payment basis, which means they don’t earn a fixed salary month, relieving organisations of the fixed payment burden. For instance, the festive season demand often results in a series of hiring for delivery executives, packers, loaders, warehouse executives, inventory management executives, etc. These workers usually receive payment on a variable basis.
Boosts Growth Opportunities for Brands
The growing demand for a flexible workforce will lead to an increase in demand for temporary staffing services in India. The flexible workforce helps brands achieve more revenues and economies of scale. As a result, this temporary staffing culture will continue to blossom in India.
Compliance Norms to Set in
The emergence of temporary staffing will lead to benefits as well as challenges for the industry. Compliance issues can emerge and prevent companies from achieving the desired growth. Taking note of the same, labour laws will become more robust and help organisations gain enhanced trust and legitimacy, besides benefitting the contractual workforce.
Adoption of Digital Technologies
The adoption of digital technologies is another key factor boosting the growth of temporary staffing services in India. Companies are going all digital to hire a contractual workforce. They are tapping into the potential of both professional and non-professional platforms to attract a temporary workforce in India.
Challenges Faced in India’s Temporary Staffing Service Segment
The absence of a comprehensive regulatory framework, coupled with a market flush with unorganised players poses problems for temporary staffing services. The government has to an extent formalised the workforce by introducing several initiatives such as providing social security benefits to the temporary workforce. The right policies and regulations can help India's temporary staffing contribute immensely to the country’s economic growth and development. Employers can get a large number of skilled workforce who after receiving social security benefits can deliver more and help companies expand at a faster rate.
Closing Words
Temporary staffing in India will continue to stay active as companies increasingly look for flexible means to stay ahead in a competitive business landscape. The prospects of economies of scale, cost-effectiveness, flexible workforce solutions and other benefits will keep driving businesses towards temporary staffing services. Among the many temporary staffing service providers, Kutumbh HRCare (Kaam matlab Kutumbh) stands atop. Its experts use the latest technologies to hire a wide range of temporary workforce for businesses.
Kutumbh HRCare is a manpower solution enterprise serving fortune 500 Clients.
2024 © All Rights Reserved by Kutumbh HRCare Private Limited
CIN: U74900DL2018PTC334097