Submitted To Prof. Andrew Dutta, Recruitment and Selection, Ex PGP 2009-12

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Submitted to Prof.

Andrew Dutta, Recruitment and Selection, Ex PGP 2009-12

By Julian Tobias, Roll No. u511003


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Temporary Staffing or temping for short started about seven decades back in the US and spread to Spain and Netherlands. Gradually organizations have realized the advantages and cost-impact of temping strategies leading to work force flexibilities. People have taken a fancy for learning new skills in different areas of business with a decent salary and flexible timing.

The global temping business is worth $140 billion. In India itself the market is woth $111 million and the staff and jobs in temping around 6 to 8 million. Temping is moving from metros to non metros and is growing at 17% quarter on quarter. Around 75000 jobs were created in temps in India and there is room for a lot more. Indias workforce is about 540 million of which 100 million is organized and the 240 million young staff in 20-28 age group can be the differentiator as temping could be the first option for them.
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LG Electronics added 2000 people many of them temps in sales, manufacturing, logistics, and supply chain. Lupin Labs saw a 4% increase in temps in back office,administration,IT support and HR. Organizations in Banking, financial services, insurance, FMCG,retail,energyy,telecom and infrastructure look for temps The Indian temp market is growing and companies are giving valuable skills due recognition. The temp market attributes over 5 lakh temp staff in 264 profiles, 13 industries in 14 major locations in India . Hiring employees on contract is an integral part of growth strategy that Logica follows as it allows us to get the right person for the job in place on:Prince Jayakumar,Head,Talent Acquisition,Logica India. Like Logica, many organizations want their permanent employees to focus on core functions and strengths thus for non core functions they hire temps

Relieves organizations from training since temps are already trained Certain jobs are need based so supervision of such jobs is best left to contract vendors. An opportunity for alternate staffing: when internal staff are not equipped Staff optimization is possible without worrying over replacements cutting down on non productive staff. This has the positive effect of doubling the productivity of the core employees who do not need to perform odd jobs.
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Temping can provide scale-up or scale-down during the upswing/downswing of the economy Temping lowers costs as temp workers have lower hiring and retiral benefits costs Temping could be a testing tool to get permanent employees-even temps aspire for permanent positions In US 90% of unemployment has lessened due to temping If temps are paid the same as regular employees by suitably amending the Contract Labour Act,it could provide flexibility to the industry as Trade Unions would not have to fight for equal treatment of contract staff
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Legal points in the Contract Labour Act create bottlenecks for full use of temping as a strategy-Legal issues remain unsorted. The multiple clearances from Labour agencies are a drag on the quick temping processes. The principal employer(who takes the temps) has to bear the flak if the contractor plays mischief with his staff. Efforts should be made to enforce supervision than regulation, taking away the permanency claims on principal employers and actually penalizing those who exploit contractual staff and practise unfair labour norms and encourage those who abode by the rules.
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The Minimum Wages/PF and ESIC Acts also need to be revisited for which the bureaucracy will have to take an active part in assimilating the entire mechanism into the Indian System Another issue is absenteeism without notice by Temps leading to disruption in routines The temps should be made to feel valuable, aligned with the corporate mission & Vision with clear idea of the goals of the organization. Temp are also volatile so they shift jobs fast therefore requiring the conversion of employees to core jobs that are permanent positions.
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Motivating temps with permanent staff to get a feel of cost of ownership Remove the stigma of temps- no discrimination , so no frustration creeps in Make temps feel valued. No compromise on attitude Temps should be put through the same rigorous recruitment process as permanent staff.(This makes conversion to permanent easier) Everyone wears the same badge Have open channels, performance feedback, rewards and recognizing temps as done for permanent employees- Star the Star(distributing stars to temps for good performance)
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Provide incentives at par with permanent staff for e.g. distributing service charges from revenue to all. Give Leave, holidays, medical and hospitalization, transport, cafeteria , celebrating birthdays, marriages ,births etc. Provide training on skills as this can be the differentiator in the temp market.

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Temping is growing Should be built on a platform that can willingly and rapidly change Business environment is becoming more complex anmd organizations need to resort to innovative solutions to reduce costs. In future around 20% of staff will be temps and will need new HR processes, policies and frameworks Make temping an end to end activity than only a employee leasing activity. A promising road ahead
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