Contract staffing has emerged as one of the most demand in staffing services from organizations to meet their unique or specific challenges faced in when doing their respective businesses. Contract staffing services being provided by various staffing agencies is helping employers in saving their time and cost in employee recruitment as well in managing their HR issues with ease. The rise of contract staffing services can be observed from the fact that contract staffing experienced a record-breaking year during 2013 with companies embracing contract staffing as a mode to contain costs and to achieve workforce flexibility in the wake of political and economic uncertainty.
A nationwide study conducted by a reputed contract staffing back office agency revealed that contract staffing was more popular in the following industries during the previous year-2013 with contract staffing placements in following industries with the share of their percentage depicted herein below:
- Health care topped with 31% share,
- Business Professional and Support staff with 20%,
- Engineering and Manufacturing with 15%,
- Information technology with 13%,
- Finance and Accounting with 12%,
- HR/Legal/Recruiting with 7%,
- Sales and Marketing with 2%.
The health care industry has utilized the contract staffing method for recruiting healthcare professionals for their skilled professional requirements. The next biggest increase in the contract staffing were recorded in Engineering/Manufacturing and Information technology arena with both industries competing for highly skilled professionals thereby turning to contractors rather than to direct hire staffing service agencies.
Staffing/Human Resource experts are of the opinion that industries utilizing the services of contract staffing are encouraging the trend towards a new amalgamation of workforce in which companies utilize both the permanent employees or direct hire staff and contractors as part of their business strategy. These companies are desirous of deriving benefits of both direct hire and contract staffing. This new workforce model is enabling the companies to maintain a core of direct hires that is supported by a large outer ring of contractors that can be easily increased and decreased based on their business needs and acumen. Contract staffing is also helping companies to ease their headcount constraints with contract staff not appearing in their (company’s) payrolls as staffing agencies providing contract staffing services largely handle salary and payroll matters of the contract staff thereby relieving their clients HR staff of the routine and tedious tasks of managing payrolls.