by Prompt Personnel | Nov 29, 2020 | Human Resources
When hiring a new talent to grow your business, уоu are lіkеlу to соmе асrоѕѕ ѕеvеrаl terms such as permanent employees, fixed-term employees, contractual employees, consultants, and gig workers. There are a few employment agencies and headhunters that provide only permanent hiring services while some offer only contractual staffing or temporary staffing services. There are also full-fledged companies that offer a complete spectrum of such services and can guide you to find the right mix after understanding your needs.
The rеаl question іѕ, “Which type of manpower іѕ bеѕt suited fоr mу organization?” In this article we compare Direct hiring versus Contract staffing, defining both, and comparing thеіr unique advantages under dіffеrеnt situations.
What is Direct Hiring?
Thе direct appointment іѕ аlѕо referred аѕ direct placement. In thе direct recruitment process, аn employment agency wоrkѕ tо source, qualify and hire permanent staff оn behalf of its client. Thеѕе аrе usually full-time positions with benefits, but sometimes-direct hiring can аlѕо fill part-time or Temporary staffing positions.
Whіlе thе employment agency handles thе direct recruiting tasks, thе nеw hire goes straight tо thе client’s payroll and bесоmеѕ an employee of thаt company оnсе аn offer іѕ mаdе аnd accepted. A direct search route usually means thаt thе company has committed tо a long-term relationship wіth thеіr employment partner. Undеr thіѕ partnership, thе recruiters саn dо a thorough job search and interview the bеѕt candidates fоr thе position.
What is Contract staffing or Contract-to-hire?
A contract-to-recruiting process іѕ vеrу similar to a direct recruiting process due to the way the recruitment іѕ carried out. However, thеrе іѕ lеѕѕ оf аn upfront commitment on behalf оf thе client іn hiring thе chosen candidate. Also, in a contract staffing scenario, the selected candidate begins employment as a part of the employment temp agency payroll instead of the client.
While direct hiring means the employee immediately joins the client on the permanent payroll, the contract-to-hire process offers mоrе flexibility to the employer. He can hire thе temp staff rіght аftеr thе contract period оr may also decide nоt tо proceed based on the performance.
Contract duration varies widely from short-term to even an indefinite term. In аlmоѕt аll situations, thе client іѕ allowed tо to convert thе contract staff іn tо а permanent employee.
Nоw, let us break down thе difference bеtwееn thе twо by understanding their pros.
Benefits of Contract Staffing
- In Direct hiring, you cannot hire employees just for a short period or for a small project. So, contract staffing is the best option when you have a short-term requirement for a project.
- There is a lot of work for the HR team to hire one employee. Screening, background checks, interviews, and a lot more. But it is not worth spending so much time on a short-term contract. Contract staffing saves a lot of time for the HR team.
- .Helps to save costs. Contract staffing helps to hire the workforce as per the demand cycle, seasonality, etc. all of it flexibly. This will benefit the organization in optimum utilization of resources and deployment of the workforce as per their need, which in turn results in cost-cutting.
- Finding the right talent for your organization can be a tedious task. Contract staffing provides an opportunity to assess the performance of the employees in a temporary role or short-term role.
Advantages Of Direct Staffing
Hiring directly with the help of a recruitment firm offers a range of advantages for both the candidate and the agency:
- Thе hired candidate іѕ раrt оf thе organization (employee) оn hіѕ payroll frоm dау оnе, whісh allows him/her tо avoid thе costs associated wіth contract-to-hire candidates.
- Direct hiring attracts a larger pool оf candidates, i.e., thе hiring manager оr recruiter іѕ mоrе lіkеlу tо ѕее mаnу highly qualified candidates.
- Thе candidates hаvе a stronger sense оf loyalty, mаkіng thеm mоrе lіkеlу tо bе stable аnd engaged.
- Thе candidate wіll receive benefits ѕuсh аѕ sick leave, vacations, health benefits, etc. frоm dау оnе, unlike Contract to hire.
- Unlike Contract to hire, thеrе іѕ a sense оf job security (as lоng аѕ thе candidate dоеѕ thе job diligently аnd efficiently).
Conclusion
Choosing between Contract staffing and direct staffing depends on the requirement. If you are looking for permanent staff or long-term projects, then it is good to go for direct staffing. But if you have a short-term objective, if you have very little time to hire someone or someone with a very rare skillset, then contract staffing is the right choice. Staffing firms have access to a large talent pool and it gets easy to hire someone immediately.
by Prompt Personnel | Oct 27, 2020 | Human Resources
The COVID-19 pandemic has created worldwide unrest and has affected hundreds of thousands of lives globally. It is affecting businesses and organizations to a very great extent. Organizations are uncertain about their next move, their next plan. Also, recruiting front line workers in sectors such as healthcare, retail, transport, etc was never so challenging as it is in Corona times.
Due to remote working at most organisations, there are various challenges in hiring. At this time, employers are very careful and cautious and are focusing on the applicant’s skills and abilities before recruiting them. One of the key challenges during this time is Background verification. Due to limited resources, organisations are finding it difficult to conduct background checks and verification while hiring new candidates.
Hiring a professional background verification company can help you to check the background of the candidates and foster quality employment.
Why is background check important?
One of the greatest advantages of pre-employment background verifications is to promote quality hiring and eliminate the chances of negligent recruitment. Organizations are responsible for the output of their workforce and hence hiring anyone who is not at par at this time can hamper the work quality of the organization. Background screening helps to know the previous employment history and record of accomplishment of a candidate. It provides great insights into their work behaviour and approach.
Background Checks such as identity verification, educational/professional qualifications, employment verification, address verification, and professional references helps to validate the information provided by the candidate.
Several background verification companies in Mumbai conduct thorough employee background checks on such parameters.
Employee Background Verification Challenges During COVID-19
The pandemic has affected organisations on background verification activities too. Today background verification companies in India are facing challenges in offering their professional services to their clients. They are too working from home and using digital methods to conduct a background verification process and provide complete screening information to the organizations. Due to lockdown constraints, these background verification companies are not able to perform physical background checks and screening. But they are trying to maintain the level of precision and accuracy as per the pre-Covid times.
Some challenges faced by the majority of employee background verification companies include:
- Courthouse Closures: The Covid-19 restrictions have made it difficult to get access to courthouse closures and records.
- Education verification: Since a majority of educational institutions and universities are non-operational getting access to this information is a little difficult. However, some professional employee background verification companies in Mumbai are able to get the desired information using their sources.
- Employment Verification: With organisations switching to work from home mode, there is a delay in getting information concerning previous employment, experience, performance at the previous roles, etc. from the old employer.
- Civil and Criminal Records: With public service organisations and several other government departments tied up with COVID-19 duties and with new responsibilities hence, it is challenging to get precise and timely information of a potential candidate.
Covid-19 pandemic has changed the complete scenario but has also increased the awareness and importance of employee background verification. Professional verification companies are functioning smoothly with some delays in the verification process. Screening services are grappling to provide quick, professional, and efficient employee background checks to their patrons. After all, employee background verification is an important step and must not be missed at any time especially, during a pandemic like COVID-19.
by Prompt Personnel | Oct 24, 2020 | Human Resources
Are you looking for a candidate with the right skills and expertise for your organization? Finding a candidate with the right qualifications is becoming more and more difficult for many companies especially in the given scenario. Outsourcing your recruiting needs to an expert can help you overcome this challenge..
Here is how HR outsourcing companies can add efficiency to your recruiting efforts:
Possess the perfect skills to locate the right employees
Most of the HR companies that provide outsourcing services possess the skills and a team of experts to help employers source the right candidate. They implement new-generation strategies and solutions to find the ideal candidate. With their extensive search methods and sourcing techniques, they are able to find the right candidate through a large talent pool which is readily available with them.
Know your ideal candidate
One of the benefits of outsourcing HR activities is that these HR professionals try to understand who will be the right candidate for the organisation by their in-depth understanding of the position and what is expected from the candidate to fill in the position. In order to recruit the right candidate, assessing the skills, preferences, and characteristics of the candidate is necessary. This is achieved through screening and extensive interviews conducted by the HR professionals.
Use the right HR tools
For many occasions, the candidate that you choose may not suit for the position because of your traditional methods and techniques of recruiting. On the other hand, HR companies are able to recruit the right candidate because of their excellent screening processes & tools. Most of the Hr outsourcing firms ask candidates to complete online applications, assessment forms, graphology tests, and various other tests that highlight their knowledge, expertise, and skills.
Access to reach more candidates
Many organizations find it difficult to recruit qualified candidates because of the competitive and tough job market. In addition, limited locations for the purpose of recruiting and shortage of the right skills are also why they find it difficult to find the perfect candidate for a position. In such situations, companies seek help from outsourcing companies. One of the great advantages of outsourcing is that they have the access to reach more eligible candidates. They can easily access many passive candidates for a particular position through online portals, sourcing tools, social media/social recruiting, own database, network and their connections
More efficient to find the right candidate quickly
Finally, all the above benefits can in fact result in an efficient overall hiring process in a timely manner for your organization. Manpower planning can be done more effectively with the support of the right HR partner, and help organisations to fill old or new positions as per their needs.
Efficient and right employees are the most important assets of any business. But hiring employees who are skilled and capable is not so easy for any business. Hence, one can look at HR outsourcing companies to support their hiring needs as they are the experts in this field who can effectively deal with the recruitment problems that companies face.
by Prompt Personnel | Oct 5, 2020 | Human Resources
When Business goes through challenging times it becomes imperative to achieve more with less resources ..Restrictions in budgets non availability of skilled manpower and resources, short time frame for completion of projects forces Organizations to think differently and re-align their process to hire skilled manpower for fixed term contracts or outsource hiring to HR consultants for Temporary staffing. This allows a business to add to their workforce selectively and in a dedicated area for a set timeframe, Employing staff on a fixed term contract or temporary basis saves money and resources and allows the enterprise to focus on the long-term business and core function areas ..
Contractual staffing or Temporary staffing hires skilled talent for specific short-term projects, or on contracts on the agency’s or Outsourced HR partners payroll. This in turn reduces cost and statutory liability in a huge way as it is taken over by the HR business partner
Temporary staffing also helps in reducing hiring risks, speeds up hiring process, increases flexibility, gain access to highly skilled employees/ manpower with broad experience. All of this in a short span of time..
Temporary Staffing is one of the latest global trends. It provides great flexibility to the Human Resource department as well. Temporary Staffing aims at meeting the exact requirements of an organization with ease. Contract Staffing is not a new phenomenon it has been prevailing in our society since ancient times. Earlier, specialized professionals were hired to get the project completed in the given timeframe. Today, this concept continues to exist. Expert professionals are hired on a contract basis to get the project done.
Temporary Staffing helps companies to channelize their work and improve their focus. It provides great liberty to business and allows them to avail of professional services without any burden or liability of staffing. Contract staffing helps businesses to make efficient use of their resources.
Reasons for the development of temporary staffing and contract staffing development
Allows a company to focus: The digitalization and volatile nature of the market demands attention and planning. It has become imperative for organizations and corporates to be on their toes all the time and plan their work accordingly. One has to adapt to the latest industry trends to get a competitive advantage. Hiring specialized individuals for a long term basis can cost companies great overhead costs. Whereas contract staffing and hiring professionals allow a company to avail of professional service for a limited period. Contract staffing reduces the stress on the companies and helps them explore business opportunities.
Plan Business Strategies: One of the greatest reasons why temp staffing is gaining popularity in the HR field is the flexibility it offers. Temporary staffing aids you to make an informed decision and set specific business goals and objectives. Temp staffing makes you prepared to face the ever-growing completion in the market and discover opportunities for diversification and expansion. Temp Staffing makes it easy to handle a marginal aspect of the workforce and take wise decisions.
Helps to accelerate business growth: The flexibility of temp staffing is one of the prominent advantages for a business. The contract professionals and staff are hired only till the time the project is on. This helps businesses to manage their funds properly and make the best use of available resources and time.
Better management of Cash Flow: Cash flow and fund management have a direct impact on the overall success of a business. Adopting a contracting business model can increase one’s strength and capability. It provides immense prospects to assent multiple projects at a time. It is a simple equation the more your contractors are working, the more you work.
Contract staffing is the latest phenomenon due to its numerous advantage and exceptional workforce flexibility it offers. It helps an organization to escalate their business and prosper exceptionally. However, it is essential to associate with some of the best temp agencies to hire proficient individuals on a contract basis and avail their proficient services. After all, the only things that matter for a business are the excellent workforce, skilled staff, quality of work, perfection, precision, and proper time management.
by Prompt Personnel | Aug 14, 2020 | Human Resources
It is a known fact that it can be quite tough to get the right candidate for a specific role. Though this is important, recruitment can be a daunting task, and to get it done in a proper way, you need the most efficient talent acquisition approach. And, talent acquisition can help you resolve your long-term organizational requirements.
In this blog, we have mentioned the three pivotal talent acquisition strategies that will help you guide the recruitment process efficiently.
Consider your Business Goals
Think of the business goals for the next few years and you can use those purposes to alter your acquisition strategy that will meet your every single need. Usually, the recruitment consultants tend to focus on filling the vacancies within departments while talent acquisition is all about working on company expansion and then finding employees who will be contributing to achieving your goals.
Obviously, you might not need any roles at the moment but maybe you’ll think of the talent that you’ll need to fulfill your business’s long-term objectives. But, you should always remember that investing in the right talent will be worth it for your company after all.
Usage of both Data & Marketing Business
It is a fact that you cannot create a marketing campaign without data and recruiting can also be not done without it. This is why talent acquisition should be treated with just equal importance as any of the marketing drives. Also, convincing candidates to join your organization is just as important as you could imagine for running your organization efficiently.
However, there are different opportunities through which you can use data to brace your talent acquisition strategy. For this, your expert HR team should collaborate with your marketing department in order to draft emails, job descriptions, career pages, etc.
Broaden Your Sourcing Plans
To find the best talent, you should expand your sourcing pool. Other than spending time on job platforms, you can think of some other specialized job boards or even some networking events that will assist you in finding out the desired group of talented candidates. You should always focus on strengthening relationships along with networking with the right people. This strategy will help you to not only grow your pool of potential hires but also with this, you will grow the brand awareness for your company. This will apparently help you attract talent in the future, too.
Remember, when talented and skilled candidates compare different companies to work for, they will always choose the one that will have the values they resonate with, work-life balance, culture, and pay as per industry standards. If you are refining an inspiring employer brand, then, undoubtedly, you’ll be appealed by best talent while also getting long-term success for your organization. Consult PromptPersonnel, the leading HR recruitment agency, and get resolved your talent acquisition needs in a single shot.
