What An Employer Must Not Do to Contract Staffs!

 Despite the fact that most of us prefer permanent employment contract, India is going through an aggressive transformation in hiring the contractual workforce. Third party payroll in the corporate sector has come out to be a new staffing phenomenon these days. As per current hiring trends, companies have started spending heavily on contract hiring.



However, it is actually helping them save their resources at a larger scale. In fact, it cuts down the cost of hiring by 50%. Companies which are paying attention for contract employees are those of bigger names in the market like IBM. Major brands have found contact hiring an effective way for saving quality resources.

Still, if a job seeker is provided with two options to choose from – (a) permanent employment conract, or (b) contract job, the job seeker may choose the permanent job. Why? There are multiple reasons associated with it. Subsequent points would highlight them and help you avoid them as an employer:

Salary Increment
Companies are often seen little unfair to their contractual staffs when it comes to salary appraisals. Employers must maintain a justified salary increment policy favoring every employee be it permanent employment contract or contractual. Though the contractual staffs get their salary from their staffing agency, the role of the company (where the employees are assigned to work for) is crucial for appraisals. Here, proper communication for the appraisals from the company to staffing agency is important. It’s the core responsibility of the company to take the message forward. Or, there must be an understanding between both the parties (companies) for fair salary increment policies.  

Training & Skill Development

Training improves capabilities of employees as professionals to adapt to the kind of job they are supposed to perform. It helps employees to learn and grow in a work environment. It impacts and improves the performance of employees and ultimately benefits the overall productivity of the organization they are working for. Biased approach could land the company in a loss if skill development is not for the contractual staffs. To improve employee motivation level, companies need to get the third-party payroll employees involved in skill development and training programs.  

Perks & Benefits

The role of every team in an organization is important, so is every employee. Contractual staffs are no different than the permanent workforce. If permanent employees are getting all the benefits & perks, why not the contractual staffs! Be it leaves, holidays, incentives or gifts, every organization have to be equal with each of the employees.    


You must not let your contractual employees think that they are just working with you; not associated with you. Let them feel that they are associated with you and they are the important part of your organization. Otherwise, to find better opportunities, you will find them leaving your company. There will be a high attrition rate in your organization if you fail to maintain ‘equality’. 
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