The emergence of contract staffing in employment generation

Contract staffing has become a buzzword among U.S staffing companies having employed on an average of 3.03 million temporary and contract employees per day during the third quarter of 2013 that is up by 2.6% according to the recent survey released by the American Staffing Association or ASA. The ASA Staffing Employment and Sales Survey usually collects information on U.S. temporary and contract staffing employment and sales on a quarterly basis. With the improvement in the U.S. economy, employers are continuing to use contract workers or employees to contain costs and allowing companies to complete a project without adding the necessity of permanent staff.

Companies are finding contracts staffing services as effective means of alleviating their short-term staffing needs. The main advantages or merits of hiring contract staffing are:

  • Recruitment costs gets reduced,
  • The ability to hire for specific projects and specific periods of time,
  • There is reduction in employment related issues or provisions,
  • Risks arising out of complex HR, logistical and statutory compliance and responsibilities are taken care of by the staffing agency that has a proper development process to effectively tackle or mitigate the risks.

More and more American companies are discovering just how profitable and easy to recruit contract staff for their short term staffing needs. These companies are always looking out for reducing the overhead costs and the best way to do this is to hire the services of contract staffing agencies or firms. There is now a huge demand for professional and technical contractors or workforce.  Contracting as such is providing a steady cash flow because contract staff or contractors are paid for every hour that they work and majority of client companies pay invoices on weekly basis.

Contract staffing is playing a key role for IT sector. IT contract staffing is also known as staff augmentation or contingency staffing. For IT companies, contract staffing is enabling them to complete important IT projects where staffing firms or technology service partners’ offers contractors on a short-term contract basis. In addition, they are also competent in providing an entire project team to manage the development process from design to deployment. There is also an option given for IT companies where contractors are hired for six to twelve months before the employer having the option to convert them (contract staff) into full time employees popularly known as IT contract- to-hire staffing services.