There is awidespread perception that employment in so-called flexible staffing arrangements, including various temporary,on-call, and contract jobs, is large and growing. The Indian organizedflexi-staffing industry is set to get much bigger, with the transition to thegoods and services tax (GST) expected to have a positive influence. But as theflexibility lets firms hire more temporary staff, the focus will shift fromcreating permanent employment. This doesn’t augur well for providing good andwell-paying jobs with benefits and a clear career progression, nor is it goodfor developing skills.I endeavor toshed light on the implications of flexible staffing approach on the quality ofexperience and succeeding effects on employee life. Reviewing existing researchon a wide range of flexible staffing arrangements: agency temporary, on-call,direct-hire temporary, leased, contract company, and independent contractoremployment.
Is it really, a good Idea! Many regard sucha development as troubling, pointing out that workers in these arrangementsoften receive low wages and few benefits.Firms, it is argued, are using these arrangements to increase workforceflexibility, and, by implication, are reducingtheir commitment to training workers and providing them with stable employment.Moreover, somefirms allegedly use flexible staffing arrangements to circumvent employment andlabor laws, raising concerns that existing laws are inadequate to protect thegrowing number in these arrangements.The circumstances facing workers in flexible staffing arrangementsvary substantially by type of arrangement.
Agency temporaries, on-call workers,and direct-hire temporaries are disproportionately young; they tend to beunhappy with their work arrangement and want a permanent job with regularlyscheduled hours; and they are likely to earn low wages and come from poorfamilies. Along with contract company workers, they experience less jobstability compared to regular, full-time workers. Let’s take a lesson learnt, astudy by U.S. department of labor shows patterns differ by type of arrangement.Agency temporaries, on-call workers, direct-hire temporaries, contract workers,and regular part-time workers are much less likely to be employed one yearlater in part because they experience much higher levels of unemployment and inpart because they are more likely to drop out of the labor force bothvoluntarily and involuntarily. One year later, agency temporaries, on-callworkers, direct-hire temporaries, contract workers, and regular part-timeworkers are also much more likely than regular full-time workers to havechanged employers.
The pattern for independent contractors and otherself-employed is quite different. Although workers in these groups had somewhatlower employment rates than regular full-time workers one year later, the loweremployment rates may be ascribed entirely to the fact that a much higherproportion voluntarily drop out of the labor force. They are less likely thanregular full-time workers to change employers and to become unemployed The trend in contract staffing isincreasing day by day! The main reason for this trend is to reduce risk factorsand as a strategy to mitigate the risk uncertainty associated with the inflowof projects.
A trend towards a “just-in-time” workforce raisesconcerns about the future job stability and training of workers. Consistent with this finding, themajor reason firms give for using these types of arrangements is to accommodatefluctuations in their workload or absences in their regular staff. In addition,firms appear to be increasing their use of these types of arrangements, inpart, to increase their workforce flexibility. In the end Iwould like to conclude with elucidating the concept of corporate socialresponsibility means that organizations have moral, ethical, and philanthropicresponsibilities in addition to their responsibilities to earn a fair returnfor investors and comply with the law. This means that organizations are expected to do more thanjust comply with the law, but also make proactive efforts to anticipate andmeet the norms of society even if those norms are not formally enacted in law.__________________________ References:- https://www.bls.gov/ore/pdf/ec980040.pdf- http://www.thehindubusinessline.com/opinion/the-dawn-of-the-flexible-workforce-era/article7159155.ece- Staffing Industry Analysts India