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Submitted to Prof. Andrew Dutta,

Recruitment and Selection, Ex PGP 2009-12

By Julian Tobias,

Roll No. u511003

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Temporary Staffing or temping for short started

about seven decades back in the US and spread to

Spain and Netherlands. Gradually organizations

have realized the advantages and cost-impact oftemping strategies leading to work force

flexibilities. People have taken a fancy for learning

new skills in different areas of business with a

decent salary and flexible timing.

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The global temping business is worth $140 billion.

In India itself the market is woth $111 million and thestaff and jobs in temping around 6 to 8 million.

Temping is moving from metros to non metros and isgrowing at 17% quarter on quarter.

Around 75000 jobs were created in temps in India andthere is room for a lot more.

Indias workforce is about 540 million of which 100million is organized and the 240 million young staff in20-28 age group can be the differentiator as tempingcould be the first option for them.

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LG Electronics added 2000 people many of them temps in sales,manufacturing, logistics, and supply chain.

Lupin Labs saw a 4% increase in temps in back office,administration,ITsupport and HR.

Organizations in Banking, financial services, insurance,

FMCG,retail,energyy,telecom and infrastructure look for temps The Indian temp market is growing and companies are giving valuable

skills due recognition.

The temp market attributes over 5 lakh temp staff in 264 profiles, 13industries in 14 major locations in India .

Hiring employees on contract is an integral part of growth strategy that

Logica follows as it allows us to get the right person for the job in placeon:Prince Jayakumar,Head,Talent Acquisition,Logica India.

Like Logica, many organizations want their permanent employees tofocus on core functions and strengths thus for non core functions theyhire temps

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Relieves organizations from training since temps are

already trained Certain jobs are need based so supervision of such

jobs is best left to contract vendors.

An opportunity for alternate staffing: when internalstaff are not equipped

Staff optimization is possible without worrying over

replacements cutting down on non productive staff.

This has the positive effect of doubling theproductivity of the core employees who do not need

to perform odd jobs.

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Temping can provide scale-up or scale-down during

the upswing/downswing of the economy Temping lowers costs as temp workers have lower

hiring and retiral benefits costs

Temping could be a testing tool to get permanent

employees-even temps aspire for permanent positions In US 90% of unemployment has lessened due to

temping

If temps are paid the same as regular employees bysuitably amending the Contract Labour Act,it couldprovide flexibility to the industry as Trade Unionswould not have to fight for equal treatment of contractstaff

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Legal points in the Contract Labour Act createbottlenecks for full use of temping as a strategy-Legalissues remain unsorted.

The multiple clearances from Labour agencies are a

drag on the quick temping processes. The principal employer(who takes the temps) has to

bear the flak if the contractor plays mischief with hisstaff.

Efforts should be made to enforce supervision than

regulation, taking away the permanency claims onprincipal employers and actually penalizing those whoexploit contractual staff and practise unfair labournorms and encourage those who abode by the rules.

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The Minimum Wages/PF and ESIC Acts also need to berevisited for which the bureaucracy will have to take anactive part in assimilating the entire mechanism into theIndian System

Another issue is absenteeism without notice by Tempsleading to disruption in routines

The temps should be made to feel valuable, aligned withthe corporate mission & Vision with clear idea of the

goals of the organization. Temp are also volatile so they shift jobs fast therefore

requiring the conversion of employees to core jobs thatare permanent positions.

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Motivating temps with permanent staff to get a feel of costof ownership

Remove the stigma of temps- no discrimination , so nofrustration creeps in

Make temps feel valued. No compromise on attitude Temps should be put through the same rigorous

recruitment process as permanent staff.(This makesconversion to permanent easier)

Everyone wears the same badge

Have open channels, performance feedback, rewards andrecognizing temps as done for permanent employees- Starthe Star(distributing stars to temps for good performance)

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Provide incentives at par with permanent staff for e.g.distributing service charges from revenue to all.

Give Leave, holidays, medical and hospitalization,transport, cafeteria , celebrating birthdays, marriages

,births etc. Provide training on skills as this can be the differentiator

in the temp market.

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Temping is growing

Should be built on a platform that can willingly andrapidly change

Business environment is becoming more complex anmdorganizations need to resort to innovative solutions toreduce costs.

In future around 20% of staff will be temps and willneed new HR processes, policies and frameworks

Make temping an end to end activity than only aemployee leasing activity.

A promising road ahead

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