Contract staffing services is a particular type of staffing service in which contract employees are hired to perform specific functions in a contractual relationship and for a defined period. Contract employees or staff can be hired through staffing agencies or they work as independent contractors. According to the Bureau of Labor Statistics (BLS), contract staffing is outpacing the overall job growth by five times, as more and more candidates are choosing contract staffing as a lifestyle because of its many advantages or benefits such as flexibility, opportunity to expand skill sets, travelling options and other indirect benefits.
Modern corporate/companies are facing with moment to moment fluctuations in reaction to market demands that require quick decisions and agility to adapt to new trends. To meet these new demands, companies are realizing that they must change the way they view their workforce and therefore many of these companies are shifting toward contract workforce or contract staffing services.
According to the Accenture 2013 ‘Rise of the Extended Workforce Report’ states that, “to compete in the future, organizations will need to push talent management beyond the confines of the enterprise wall to include the new extended workforce : a global network of outside contractors, outsourcing partners, vendors and strategic partners and other non-traditional workers” . Companies are now looking towards contract staffing to help them in reliving many common causes of recruiter stress that include unpredictable incomes, economic uncertainty, and problem of slow decision-making and counter offers.
Some organizations are even replacing top-level managers and executive teams with temporary CEOs, CFOs, and COOs, and other highly skilled workforce. In the United States, U.S. staffing agencies or firms employed on an average 2.96 million temporary and contract workers per day in the second quarter of 2013 that is up by 1.8% from the same period last year, according to the data released by the American Staffing Association.
About 88% of staffing employees have said that temporary or contract work made them more employable and 77% of staffing employees say that it is a good way to obtain a permanent job. Temporary and contract staffing sales totaled to $26.94 billion in the second quarter of 2013 which is 2.4% higher than in the same period in 2012.