Thursday, February 26, 2009

Why Cooporates Choose Temporary Staffing?

The face of HR fraternity in Kenya is undergoing sea level changes with upcoming trends like e-recruitments, outsourcing HR functions, and the like. Now the next big thing - Temporary Staffing is gaining acceptance across industries. Few months back the job market was overflowed with people who were labeled as leftover guys who could not find a permanent job for themselves. But that is passe now. Companies are recruiting employees on temporary basis mainly for a particular project, paying them off and then letting them go as soon as the project is over.

What is Temping? Temping is the process of hiring temporary workers or, as they are called - Temps, for a shorter duration of time for a particular project and remain in the company till the project lasts.

The temps work for one Client Company while being on rolls of a third party. A temp is contract worker who is being hired for a short time, typically till a project lasts. The contract ranges from a period of 2 months to 15 months. These temps are made available by the employee leasing firms like Team Lease. Such companies provide a wide range of temporary staffing solutions including temporary-to-permanent services where in the company hires an employee for trial basis and absorbs him within the company on the basis on his performance; and long-term contracts where temps are hired for a longer period of time which may last up to two years.

The non core functions like sales, front office, customer support, finance, back end operations and administration demand more temps. The reason seems to be quite obvious - companies focus on their core functions to sustain the cut throat competition, while they outsource their non core functions.

So how often do these temporary workers turn into permanent employees? Though, earlier, the chance of being absorbed by the company was almost negligible, the trend is gaining pace as the demand for skilled workforce is increasing. The conversion rate has grown up to 25 to 35 percent form four percent.

Why Temping;Temping started off with MNC's hiring contract workers. It comes with a packet of benefits for the organizations as well as for the employees. Organizations enjoy the benefit of workforce flexibility and ease of recruitments and quick replacements. Temping also saves training costs as leasing companies direct skilled and experienced workers to the companies. Moreover, non productive employees can be chucked out without many complications. By outsourcing non core functions, the company deeply focuses on its core functions only. The companies also get more work done from temporary workers and also escape for paying them perks and incentives.

From employee's point of view, temping helps an employee to acquire different skills and upgrade basic skills by working in different setups. Employees acquire multiple skills to remain employable is competitive job markets. Temping even offers tempting career opportunities to housewives, retired personnel, people with defense backgrounds, freelancers and freshers. Temps who work for big brands also boast about the same in their resumes, thus, giving them an advantage over others.

These are some flip sides of temping too. Job insecurity always acts as a demotivator for others candidates. The temps hardly get any perks and incentives like the permanent employees. The chances of becoming permanent with the client company are also less so possibility of achieving a stable career lacks. The under performers are always at risk as they can be sacked anytime and that too without a notice. Moreover, too much hopping act as red flags in one's resume.

Sustaining the trend;Though job security is still essential for many in Kenya, an increasing number of young people are opting for temporary jobs. The market for such jobs will grow exponentially in coming years. Almost every sector, be it capital intensive or labor intensive, is showing keen interest in temps. Moreover, those candidates who have a hunger for multiple skills, are increasingly taking up these jobs. Permanent job assurance is now passé as downsizing can happen any time. Temping will prove to be a viable option in such cases. The industry watchers believe that this new HR trend is here to stay.

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