Flexi-staffing gaining popularity in India

Organised staffing firms have been gaining popularity in recent years for mobilising formal Flexi/Temporary or contractual jobs in India. The organised temporary or flexible staffing is not new to India. And it is not only just present in IT or white-collared business, but also in blue-collared industries across various sectors. The industry is growing at about 14-20% year-on-year consistently, unlike any other industry in the current economy.

Flexi staffing is a boon to corporates, as it enables them to adapt to seasonal, structural and cyclical changes in the labour market. Many organisations are looking to adapt themselves to predictable and unpredictable changes and with good reason with the blended workforce which includes flexi staff.

An Indian Staffing Federation (ISF) study has revealed that 60% of the organisations engaging temporary staff accelerate faster out of a downturn. Compliances and Flexibility are the two strongest areas where organisations benefit with staffing partners.

With professional flexi staffing companies, a flexi worker gets all the statutory social benefits, insurances and other benefits that they are entitled to. The acceptance, however, is still low in India, as the requirement of security comes attached with the word “permanent” and is the driving factor of all decisions. However, in this economy where nothing is permanent, it is best to be aware than be caught in surprise.

Another key benefit for flexi employees is the opportunity to keep themselves abreast with continual skill development. Job seekers in the IT sector have always preferred to work on projects as it helps enhance their skills consistently. But in other industries, skill enhancement is not looked upon with similar criticality. Fresh graduates and first time job seekers account for a majority of flexi staffing employees at the moment.

Freshers benefit from such a proposition as they get an opportunity to work for major brands on short-term projects and gain experience. It benefits women returning to work post break
and retired professionals with niche skill sets as they can opt to work for multiple clients and charge a premium for their services.

Millennials are mostly particular about their work-life balance and also the baby-boomers who prefer flexi work mode or less working hours. For them, flexi work mode has been a preferred mode for them to increase productivity, organisational performance, employee engagement and personal well-being, health and happiness.

However, the biggest challenge lies in the fact that the sector is over-regulated and under-supervised. There are around 100 different laws that a staffing company needs to adhere to. We need to move away from multiplicity of labour laws to a single labour code. Labour reforms are crucial and key to further the growth of the industry in India.

The time is not far when flexible working will become the most accepted norm and India alone will add 2.9 million flexi staff by 2018. Undoubtedly it is widely regarded as highly productive and beneficial to client relationships as well as among job seekers. Furthermore, blended workplace is the convenient role in hiring with flexi-staffing been pivotal in it.

(The author is Executive Director, Indian Staffing Federation)