Hiring Contract Workers: A report by Spectrum Talent Management, a one-stop solution for global-local human talent management, reveals that around 50% of Indian firms are leaning towards contract hiring due to the expected downward market slump amidst mass layoffs.
Businesses do not have the bandwidth to increase their fixed costs by hiring FTEs. The current demand is hence met by the people readily available via layoffs. Contract staffing has emerged as a viable short-term staffing solution. Although this is not a long-term fix for the slowdown, it definitely settles the situation.
States of Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, and Rajasthan have witnessed the highest demand for contractual staffing. Compared to last year, the demand range has a variance of 10%.
The demand is higher in FMCG, followed by sectors like e-commerce, manufacturing, retail, logistics and healthcare. IT is yet to catch up in India as compared to other developed nations.
No specific industry comes at the top for contract hires. Industries are season-driven and directly influenced by a subsequent demand spike, such as Big Billion Sale events.
The male vs female ratio stands at 3:1 which has been prevalent over the past couple of years, implying the gender gap in the gig market.
Contractual staffing is also offering lucrative salaries. The agenda of hiring contract staff is to fulfill the imminent demand because of which they offer above-average salaries. The requirements are generally immediate due to critical assignments.
The resources sought are typically qualified and have demonstrated prior expertise in the same field, which is vital to achieving project deadlines.
Note: Article was originally published on India Today featuring Spectrum Talent Management.