Contractual Employment: Benefits of Employers
With the passage of time, more and more jobs are being offered on a contractual basis. Gone are those days when one would join a job and retire from it after working for more than three decades. In present day, millennials tend to switch jobs every two years and in such a scenario, a contractual job is actually seen as something easily acceptable.
What is contractual employment?
A contractual employment is a form of employment that requires an employee to sign and agree to terms of contract before one starts working.
These days’ permanent employment contract are on the rise and more and more corporates are offering new joinees the privilege of contractual employment. Some companies also offer permanent employment contract to new employees. While in India, the concept of contractual employment is yet to become more popular like its western counterparts, nonetheless everyone seems to be embracing the same gradually.
While Indians (whether employer or employee) still need to get used to overall concept of contractual hiring and permanent employment contract, there are ample benefits of accepting a contract employment. Let’s take a look at the major benefits of a contractual employment for employers:
#1. Substantially cost effective
As an employer, if you roll out a proper and permanent employment contract, it will turn out to be substantially cost effective in the long run. It is a fact that contract employees generally come with a fixed cost and the cost of employing them is mentioned in the contract. There is also no maintenance cost, medical bills or medical insurance that needs to be covered for them. Needless to say that this saves the company a lot of money. If efficiently managed, contract employees can make things done at a really low cost. This is one of the biggest advantages of contract employees.
#2. Higher availability
Contract employees have more flexibility and mainly due to this, there are many options available to them, when it comes to choosing from employers. Employers can also choose from multiple options in their way of employment opportunities.
#3. Specialized or seasonal Help
Companies requiring a specialized skill set for a particular project, that may be of a short duration such as six months or one year, would ideally prefer to hire a contractual employee, rather than train current employees or even go for a permanent hiring. These independent contact employees can get the project running and even end up supervising permanent employees who probably possess the minimum skills required.
#4. Employer satisfaction
On the other hand, employer who chooses to opt for contract employees, leverages the benefit of employer satisfaction. This is because, hiring a contract employee involves the ease of separation. If an independent contact employee is unable to live up to the expectations of his or her employers, the employer can choose to terminate the contract without much hassle.
#5. Lower exposure to legal action
Permanent employees whether part-time or full-time have lots of rights and protection under legal laws. But many of these laws do not apply to contractual employees. And this is where employers have an upper hand. Lower exposure to legal action implies that employers will not have to worry about any legal hassled in case they need to take any action against contractual employees.
Author Bio: A digital media strategist and a content marketer, Sampurna is passionate about writing and blogging. Working as a full-time professional writer for more than five years now, she has been lending her expertise to the online world by penning articles and blog posts on jobs and careers, HR tips and the recruitment industry. She also enjoys reading and travelling.
