contract staffing

Contract Staffing


Significance and benefits

In today’s competitive marketplace, the recruitment and staffing industry plays a significant role in accessing the right talent and fitting them in the right position. And the growing demand within companies for short-term staffing needs has made way for many recruiters to provide their clients time-limited solution to the staff shortage. That’s where Contract Staffing comes into picture.
Contract staffing is becoming a popular trend amongst businesses to deal with challenges like staff crunch, special assignments/projects and work fluctuations. Let’s understand this in depth!

What is contract staffing?

As the name suggests, contract staffing, also known as contract recruitment or contract employment is a process of hiring an individual on contract basis. Although the contract employee works for a company or employer, he remains the employee of the hiring agency.

Unlike the permanent recruitment set up, in the contract recruitment the contingent employee is hired to complete a specific task/project in the set time period at a specific pay rate. This implies that the contract recruitment does not absorb the individual as a permanent staff and both the employer and employee are aware that the job is contractual.

So, the three components required for contract recruitment include:

Contractor: Or the contract worker/employee who will be performing the fixed task for a specific time limit.


The one with the staffing need and for whom the contractor will do the job.


The staffing agency throughout the contract employment will remain the actual employer of the contract employee on record. Accordingly, the recruiter will only decide and manage the contractor’s compensation, payroll and benefits.
The first two components are associated with each other for a fixed time and reason and their association is subject to the renewal of the contract. Interestingly, the contractual staffing allows the two to be in a win-win situation through mutual momentary exchange.

Why Contract Staffing?

Going by the market trends, more and more businesses are discovering the many benefits of contract recruitment and thus wanting to invest in the contract staffing services to fulfill their short-term needs. While companies continue to reap the many benefits of contract recruitment services, availing them for workload fluctuation, staff shortage, evaluate employee’s skills or responding to market changes, recruiters are making the most of this growing demand.

Here are some more reasons as to why companies are going for contract staffing services:

  • If you are looking at options to reduce overhead costs and improve the cash flow, Contract Staffing is the answer.
  • Among the many benefits of the contract staffing is profitability. Both companies and recruiting agencies are learning as to how profitable contract employment can be.
  • Contract recruitment aids businesses to selectively ramp up their workforce strength by offering as many skilled manpower for specific areas and to fulfill their demands for the desired and set time.
  • The profitability of Contract Staffing lies into the fact that it offers flexibility for the time-constraint problems.
  • Hiring contract employee helps companies to reduce legal risk as most of the liability for complying with employment laws falls on the recruiting agency.
  • Contract staffing is also beneficial for recruiters as it translates into improved business and relationships with their clients.