The human resource of a company is what makes it stand out. The employees decide the fate of a company, for it is their hard work or lack thereof that brings in profits and increases turnover. There are multiple routes via which companies fulfill their hiring requirements and fill vacancies. One of those ways, which is gaining traction these days, is contract hiring or contract employment.
Even though a contract-based career is quite common, especially in the informal sector, many professionals are unaware of the intricacies and nuances of this relatively novel method of engagement. Contract recruitment services are an excellent option for temporary and flexible staffing needs.
In addition to the significant advantages of limited-time contracts, contract recruitment agencies provide the parent company with well-equipped professional staff that attracts permanent employment even. IT Contract staffing in Dubai, Singapore, and other developing and developed economies is becoming the norm.
Even though it seems simple, the jargon of this trade can be confusing. Let us start by understanding what the concept actually is
What is Contract Recruitment?
Contract recruitment includes contracts that are typically signed with independent workers for a specified working period. After the lapse of the agreed-upon predefined period, the employer has no further obligations and vice versa.
This helps to fill vacancies on a short-term or need basis. Short periods of intense work volume are ideal for this situation. In addition, this allows efficient delegation of work because these positions are usually available in the lower levels of the organizational hierarchy.
On the other hand, a contract recruiter is someone who helps the parent company fill these positions on request. The recruiter will source and screen potential candidates and communicate with them on behalf of the company. The recruiter or the agency has the authority to draft the aforementioned exclusive contracts then. The payment details will be a part of the negotiation process that the agency handles too. Companies can opt for contract recruitment at any time.
Contract Staffing vs. Employment
For an in-depth understanding of contract recruitment, one needs to contrast it with permanent employment. Contract staffing, as opposed to regular jobs, is generally viewed as a more flexible approach. This is because it is essentially outsourcing less demanding jobs or workloads for a short duration.
It can also be used to replace critical employees in particular situations. In addition, it has limited risk and liability on behalf of the employer. It further allows the workers to filter the most lucrative opportunities and switch between companies or independent employers.
On the other hand, permanent employment is predetermined; the company provides unique benefits and incentives. This also includes termination pay, among other things, which isn’t something short-term hires ask for. Permanent employment is preferred where a strong team identity is requisite and sensitive information (e.g., trade secrets) are at stake.
How Does Contract Recruitment Work?
Contract recruitment involves diverse and varied steps, which are usually subjective for each company. However, the basic preliminary steps remain constant regardless of the company’s nature.
The parent company must first recognize, analyse and quantify its own needs and spell out the positions for which it wants to hire additional help. The next step would be to hire workers on their own or use a professional recruitment agency to aid with the compilation of candidates, vetting, and recommending the best.
If the company agrees on a potential candidate, they’ll be deemed chosen. Chosen candidates would be informed and kept in the loop. Payments can be handled internally or funnelled through the recruitment agency, whichever is more straightforward.
Benefits Of Hiring a Contract Recruiter
While employers are free to independently search for contract workers independently, welcoming an experienced recruiter on board often fetches better results. Knowledgeable, well-connected, and well-researched contract recruiters already have large databases that can be tapped into whenever the need arises, significantly shortening the reaction time and increasing the chances of getting the best talents.
In addition, a professional agency has a whole handbook from the tiresome and arduous task of interviewing, screening and recruitment to established infrastructure. Following are the pros of a contact recruitment set-up:
- No Commitment– It’s a no-brainer that one of the significant pluses of a contact arrangement is little to no commitment. Upon joining a team as a consultant, contractor, or employee, you set your association expiry date before you dive in. This leads to realistic expectations from all parties involved. This also allows the employees to move between companies and use those learnings for their position. In a typical employment scenario, there aren’t any definitions and boundaries. However, this is different. The no-commitment part, in turn, reduces liability and saves the additional employer costs that can be re-invested into the business.
- Flexibility- Using contract recruitment agencies and recruits induces a flexible work culture. The hiring part allows the company to bring on new staff more easily with negligible bureaucracy and red tape. For the employee, it is an easy way to earn a stipend. For the employer, it brings a sense of protection to the core staff’s positions. Employee headcount remains more or less constant. This also gives structure to hiring practices and ethics.
- Network Expansion- By opting to work with a contract recruiter, the company can access the recruiter’s more valuable asset- the network. Building a network is a gradual process that involves meeting different people, staying connected, and attracting goodwill. This also helps create a respectable reputation for the recruiter and thus the company by proxy. The more the recruiter earns, the more they work, and the better they look for their clients!
- The Ability to Help More People Find Jobs– Perhaps the most essential plus to recruitment contracts is job creation. By creating small vacancies, the company is developing a sustainable pool of job opportunities in the long run. A passionate, well-established recruiter would enable this process further. This attracts goodwill for the company as it helps people fulfill their passions via the opportunities posted. This also grooms candidates for future permanent jobs, possibly at the same company!
Contract recruitment agencies, often formally called contingency recruiters or informally – head-hunters, are trained recruitment professionals who work on a contract basis. This usually comes into play during an “uptick of demand” period. They are the “hired guns” of the recruiting world.
They manage all requisite tasks of the process and give your company an edge by providing it with the best possible human resource for meaningful contributions!