TEMPORARY HIRING TO REDUCE COSTS
All organizations try to find ways and means to reduce costs. Times of India of May 13, 08 discusses about one of the ways, by hiring of personnel temporarily. In the present day situation, all COSTS are increasing. Hence temporary staffing or contract hiring or employee leasing is now being adopted increasingly by the companies, due to the scarce and expensive talent. In this way, the companies can get the services of talent, reduce costs and also control the output. It is estimated that the companies can save 25 to 40 % as per the project. It also serves the Just-in –time requirements. This system is used to hire such specialized skills, which are not needed for a long time. It has been observed that I.T., infrastructure and pharma are going in for it. After some time, may be that many more companies will try to get benefits in this manner, as a common practice. Since people are looking for flexible work options, this trend is likely to continue. At present it is less than 10% in India, and may go up by 5-10 % in a few years. It is possible that as per the requirements, the temporary people may be converted to permanent. But there are problems here also, since in such temporary staffing, many people are said to be working with fake resumes.
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