Recruitment on contract has caught hold in Indian companies, what is the reason for this?

Amidst the retrenchment happening all over the world including India, the appointment of employees on contract is gaining momentum in the country. Let us know what is the reason behind this.

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A report has been issued by Global-Local Human Talent Management Company Spectrum Talent Management. It has been told in this report that 50 percent of Indian companies are appointing employees on contract amid large-scale layoffs. Layoffs Due to this, a decline is also being seen in the market. Actually, companies do not have money to increase their cost by hiring permanent employees. This is the reason that the present demand is being met by the people who are easily available through retrenchment.

In recent times, contract staffing ie keeping employees on contract has emerged as a better solution. However, this is not meant to be a long-term fix to deal with the recession. But it is solving the present situation somewhere. In fact, a large number of layoffs have taken place in many companies across the world including India. Apart from this, many people have also resigned from their jobs in recent times. In such a situation, a new option has emerged for contract hiring companies.

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Which states have the most hiring?

Maximum contract staffing is being done in Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha and Rajasthan. If compared with last year, it is known that there has been a demand of 10 percent in contract staffing. Most contract hiring is happening in the fast-moving consumer goods sector. After this, e-commerce, manufacturing, retail, logistics and healthcare are the sectors where people are being hired on contract. However, the kind of hiring is not happening in IT right now, as it happens in developed countries.

Getting big salary?

There is no specific industry that can be said to be on top in contract hiring. The reason behind this is that hiring completely depends on the demand. The thing to note here is that the people getting jobs under contract staffing are also being given a substantial salary.

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The only agenda of hiring on contract is to meet the immediate demand, due to which the employees are being given more than average salary. Usually there is an urgent need to hire people for important tasks. People are usually qualified for the resources that are in demand.