The emergence of contract staffing as reliable staffing solution

Contract staffing can be defined in simple terms as a co-employment relationship where a staffing agency or firm supplies staff to its client company for a specific function and time at a specified hourly rate. The contract employee usually has technical skills being employed by the staffing firm. However, the contract employee works within the office premises of the company with the latter (employer/supervisor) supervising the work of the former. The job length of the contract employee is about three to twelve months that can be further extended to two years or longer.

Contract staffing is helping organizations in fulfilling their short-term needs for qualified employees. Majority of companies rely on those staffing agencies providing contract-staffing services to support their upcoming projects or to meet their seasonal requirements and to reduce their workforce during offseason periods. Contract staffing is emerging as the best staffing solution for majority of IT companies or firms that require additional resources to meet their project goals on time. The contract staffing firms or consultants are providing their client companies with a seamless access to highly skilled and experienced IT professionals to help IT firms to meet their project deadlines.

The demand for contract staffing is particularly strong in industries such as Healthcare, Engineering and Manufacturing, Information Technology, Finance and Accounting, Sales and Marketing, Business Professionals and Support Staff. Contract staffing has the following advantages for the firms and some of these include-

  • Reduction in employment costs in the following areas such as-
    • Absence of workers compensation claims or expenses,
    • Not required to provide employee benefits in the form of medical, dental, vision, life and under 401(k),
    • No administrative costs for processing or hiring of new employees in the form of paperwork,
    • Risks are minimized pertaining to IRS and state audits due to worker misclassification etc.
  • The other advantage is the staffing flexibility in the form of matching staffing levels to workload and project requirements and option to terminate contract placement at any time.
  • The organizations can have the option of contract to hire staffing in which the employer gets the opportunity to interview and assess the real skills of the employee during the contract period and in evaluating how the candidate fits to the corporate culture.
  • Contract staffing helps organizations to maintain budget controls thereby eliminating unnecessary overhead costs.