There is a
widespread perception that employment in so-called flexible staffing arrangements, including various temporary,
on-call, and contract jobs, is large and growing. The Indian organized
flexi-staffing industry is set to get much bigger, with the transition to the
goods and services tax (GST) expected to have a positive influence. But as the
flexibility lets firms hire more temporary staff, the focus will shift from
creating permanent employment. This doesn’t augur well for providing good and
well-paying jobs with benefits and a clear career progression, nor is it good
for developing skills.
I endeavor to
shed light on the implications of flexible staffing approach on the quality of
experience and succeeding effects on employee life. Reviewing existing research
on a wide range of flexible staffing arrangements: agency temporary, on-call,
direct-hire temporary, leased, contract company, and independent contractor
Is it really, a good
Many regard such
a development as troubling, pointing out that workers in these arrangements
often receive low wages and few benefits.
Firms, it is argued, are using these arrangements to increase workforce
flexibility, and, by implication, are reducing
their commitment to training workers and providing them with stable employment.
firms allegedly use flexible staffing arrangements to circumvent employment and
labor laws, raising concerns that existing laws are inadequate to protect the
growing number in these arrangements.
The circumstances facing workers in flexible staffing arrangements
vary substantially by type of arrangement. Agency temporaries, on-call workers,
and direct-hire temporaries are disproportionately young; they tend to be
unhappy with their work arrangement and want a permanent job with regularly
scheduled hours; and they are likely to earn low wages and come from poor
families. Along with contract company workers, they experience less job
stability compared to regular, full-time workers. Let’s take a lesson learnt, a
study by U.S. department of labor shows patterns differ by type of arrangement.
Agency temporaries, on-call workers, direct-hire temporaries, contract workers,
and regular part-time workers are much less likely to be employed one year
later in part because they experience much higher levels of unemployment and in
part because they are more likely to drop out of the labor force both
voluntarily and involuntarily. One year later, agency temporaries, on-call
workers, direct-hire temporaries, contract workers, and regular part-time
workers are also much more likely than regular full-time workers to have
changed employers. The pattern for independent contractors and other
self-employed is quite different. Although workers in these groups had somewhat
lower employment rates than regular full-time workers one year later, the lower
employment rates may be ascribed entirely to the fact that a much higher
proportion voluntarily drop out of the labor force. They are less likely than
regular full-time workers to change employers and to become unemployed
The trend in contract staffing is
increasing day by day! The main reason for this trend is to reduce risk factors
and as a strategy to mitigate the risk uncertainty associated with the inflow
of projects. A trend towards a “just-in-time” workforce raises
concerns about the future job stability and training of workers.
Consistent with this finding, the
major reason firms give for using these types of arrangements is to accommodate
fluctuations in their workload or absences in their regular staff. In addition,
firms appear to be increasing their use of these types of arrangements, in
part, to increase their workforce flexibility.
In the end I
would like to conclude with elucidating the concept of corporate social
responsibility means that organizations have moral, ethical, and philanthropic
responsibilities in addition to their responsibilities to earn a fair return
for investors and comply with the law. This means that organizations are expected to do more than
just comply with the law, but also make proactive efforts to anticipate and
meet the norms of society even if those norms are not formally enacted in law.
Staffing Industry Analysts India