Creating a Paradigm Shift - Temporary Staffing Scene in India

Essay by abanerjee1983University, Master'sB+, March 2007

download word file, 10 pages 5.0

IntroductionToday, the phenomenon of temporary staffing is one of the fastest growing human resource trends all over the world but is still in a nascent stage of development as far as India is concerned. Worldwide, the employee leasing industry is estimated to be a $140 billion business, as estimated by consulting firm Deloitte & Touche, but the domestic staffing industry is yet to lend support to such optimistic figures. In most of the countries world wide, around 2.5 to 3 percent of the country's workforce will be hired on a temporary basis by the end of this decade.

So who is a temporary worker? A "temp" is a temporary worker with an organization who is on a third-party (staffing company) payroll. Rather than keep employees on their own payrolls, many global firms and now Indian ones are hiring an ever growing percentage of their employees from employee leasing firms.

fig 1 : The three parties in temporary staffingAs organizations focus on their core business strengths in a highly competitive environment, the non-core functions are outsourced.

The employees needed for these noncore activities are actually the employees provided by these employment leasing agencies. The leasing company usually has no hassles that are normally associated with recruiting and retaining people while the contracts are usually in the range of six months to two years.

The International Temping SceneThe global staffing industry is estimated to be a $140 billion industry and is expected to rise to around $200 billion by the end of 2007. Around 7 million people are provided work everyday. Overall, in the global market, six countries namely UK, US, Japan, France, Germany and Netherlands; account for over 90% of the total global temping industry.

fig 2 : The global temporary staffing industryFrance's notoriously burdensome labour regulations deter hiring full-time workers...