The pandemic and its restrictions on recruitment in recent years continue to increase the popularity of contract staffing. Many companies find that contract staffing is a fast and reliable way to temporarily fill job openings or find the right talent for specific projects.
With contract staffing, you can also take advantage of a global talent pool and professionals with specializations that cater to your particular needs. However, this raises a number of questions.
What exactly is the process of contract staffing?
Are there any disadvantages to contract staffing?
We answer all these questions and more in the following article that explores contract staffing and how you can benefit.
What is Contract Staffing?
Contract staffing is a legal arrangement in many labor codes (such as the US) where companies hire workers for a limited time through a contract with a third-party provider.
Contract workers can include independent contractors, part-time workers, and temporary team members. These workers are generally either self-employed or part of a temporary staffing agency.
The term “contractual staffing” is sometimes used interchangeably with contract staffing and can also refer to the direct act of hiring contract employees on a fixed-term basis instead of an indefinite term.
Staffing Agencies: What Do They Offer?
Staffing firms help connect companies to the kind of workers they’re looking for. A temporary staff agency will find and screen candidates for the client company. The company has final say during the hiring process over who they hire and for how long. The staffing agency will then take care of the worker’s paperwork and legal responsibilities.
A temporary staffing agency offers quick and easy access to a wide range of professional labor. It also eliminates common legal issues and the lengthiest steps in the recruitment process. That way, you can focus on deciding which worker best suits your company’s needs.
Working with a staffing agency reduces legal risks and liability. The agency will handle all contracts, vacation time, payroll, and tax needs expertly and in full legal compliance.
The Benefits of Working with a Staffing Agency
An Quicker Process with Less Resource Wastage
When filling a vacancy in your staff team, it can take weeks or months for a suitable candidate to respond to a job posting.
Even after you find qualified candidates, it takes time to write up a contract and handle HR services. A staffing agency saves time and handles all these steps for you, from recruitment to payroll to termination of a contract.
Cut Down on Legal Risks and Errors
Contract workers’ insurance and benefits are not the same as employees’. Many countries have severe penalties for misclassification errors, such as treating a contract worker as an employee.
Staffing agencies help you to avoid making costly mistakes on processes like arranging income tax payments. The agency will also take care of the temporary employees’ insurance and compensation and any other employment costs.
Flexibility and Better Hiring Choices
Hiring through a staffing agency allows you to see how the skilled worker fits in with your team and company vision without the pressure of having hired them permanently.
You can let them go without legal complications or find a new temporary worker quickly. You can also figure out what kind of worker would be best suited for a long-term position on the team.
Contract Staffing FAQ
Q: Are there any alternatives to contract staffing?
A: If contract staffing isn’t the right fit for your company, there are other options for you to fill vacancies in your team. In many countries, you can reassign an existing permanent employee to complete the role or hire an employee for a fixed-term contract duration. This may be particularly helpful for small businesses.
Q: What are the disadvantages to contract staffing?
A: Yes. When hiring contract workers, you may find that they lack the loyalty and commitment you can expect from full-time employees. Contract staffing can also cause legal issues if they hire staff incorrectly.
Not being able to be directly involved in the recruitment process can also be a drawback for some employers, depending on their specific needs or management style.
Q: Can temporary staffing agencies recruit internationally?
A: Yes, if the agency has the correct licenses for international and cross-border hiring. Make sure before starting the contract staffing process that the agency you choose is legally secure, so you don’t run into liability issues.