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Temping is a recent HR trend that provides a one-stop employment solution to the employers facing the challenge of constantly changing profile of the employees required, non-availability of local labor, demand for skill, etc. Temporary staffing is a contractual employment based on a three-party liaison, involving the temping agency, the client and the employee (the associate). These agencies provide plenty of staffing solutions to create a competitive advantage for those companies that seek to create a more flexible workforce, generate profits, cost-efficiency and maintain business cycle in order to meet the demands of the business competition. Temping services are highly in demand in any industry, specially in IT or R&D sectors where the temp workforce creates knowledge flexibility and cost-efficiency. For instance, Infosys and Wipro make use of these temps to meet unexpected demands in business.
The
temporary staff agency signs a contract with the client. Based
on the client's specifications, it sends its employees with
specific skill sets as temporary staff to work in the client's
office for an explicit project/for a particular time period.
For the service rendered, the temp firm receives an amount,
from which some decided percentage is given as wages and benefits
to the temps. These wages also vary depending upon the work
rotation to different clients in a period. The temping firms
earn a good profit by charging the clients higher service
rate than what they pay a temporary employee. It is a prerequisite
of a temping firm to maintain and safeguard the interest of
the temps as they are the main source of revenue for it. |
