Staffing Industry is Expected to Grow Rapidly in the Coming Future
The staffing industry places individuals into temporary positions (temps) or contracts in firms around the world. A “temp” is a temporary worker with an organization, who is on a third-party (staffing company) payroll.
A well-accepted norm in global companies, many large Indian organizations are now hiring a part of their workforce from employee staffing firms. The reason is not too difficult to guess — as organizations focus on their core business strengths in a highly competitive environment, the non-core functions are outsourced. The manpower for the latter is provided by the employee staffing company. The contracts can range from three to six months, and there are no hassles normally associated with recruiting and retaining people.
India is also home to a vast staffing industry and with each passing day, more and more organizations have started leveraging the benefit of staffing solutions. With an increase in the staffing solutions services in India, the overall staffing industry in the country is all set to experience a boost. Recently, reports have stated that, the Indian staffing industry is all set to grow by 12% by 2018, thereby augmenting the more use of staffing solutions in future. The five largest staffing companies in India, include the following:
§ Team Lease
§ Manpower Group
Certain factors have contributed towards the growth of staffing solutions in India. The demand for temporary workers has fueled by companies looking for greater workforce flexibility, faced with rapid market changes, including drastic fluctuations in consumer demands and shorter product life cycles.
However, while the demand for staffing solutions has gone up, there are certain challenges that it has to deal with. These include, strict labour laws and shrinking workforces in major markets due to low birthrates. On the other hand, the staffing market is also highly influenced by economic cycles because, unemployment rates and labour productivity — both have a major impact on a firm’s hiring rate.
The staffing industry is highly influenced by economic cycles. During economic downturn, firms start downsizing their actual workforce and temporary workers are the ones who are the first to bear the brunt. A major reason for the growth of the temporary staffing industry is the flexibility it allows to the firms.
Needless to say that, keeping in mind the current economic scenario of the country, the chances of a booming staffing industry in India are somewhat bright. Experts are of the opinion that, with an increased demand for staffing solutions in India, the chances of the growth of the Indian staffing industry is all set to increase in the coming two years’ time.
On a final note it can be said that, with the passage of time, temporary staffing is expected to boost in the coming times and therefore, consolidate the position of the Indian staffing industry. Organizations that are looking for temporary staffing in India, will grow and of course reap its numerous benefits.
Source: The Indian Express