Spectrum Talent Management, a one-stop solution for global-local human talent management have recently released a report, which reveals about 50% inclination of firms towards contract hiring due to the expected downward market slump amidst mass layoffs.
Businesses do not have the bandwidth to increase their fixed costs by hiring FTEs. The current demand is hence met by the people readily available via layoffs. Contract staffing has emerged as a viable short-term staffing solution. Although this is not a long-term fix for the slowdown, it definitely settles the situation.
Also read: Top 11 Companies on a layoff spreein 2022
States of Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha and Rajasthan have witnessed the highest demand for contractual staffing. Compared to last year, the demand range has a variance of 10%. The demand is higher in FMCG, followed by sectors like E-commerce, Manufacturing, Retail, Logistics and Healthcare. IT is yet to catch up as compared to other developed nations. No specific industry comes at the top for contract hires. Industries are season-driven and directly influenced by a subsequent demand spike, such as Big Billion Sale events.
Male V/S Female ratio stands at 3:1 which has been prevalent over the past couple of years, implying the gender gap in the gig market. Contractual staffing is also offering lucrative salaries. The agenda of hiring contract staff is to fulfill the imminent demand, hence offering above-par salaries. The requirements are generally immediate due to critical assignments. The resources sought are typically qualified and have demonstrated prior expertise in the same field, which is vital to achieving project deadlines.
Commenting on the release of such key insights, Sidharth Agarwal, Director, Spectrum Talent Management said, “Hiring of contract workers will be on the rise in the coming months due to the whispers of economic slowdown. As most businesses want to avoid high fixed costs, contract hiring emerges as a viable option. The demand for contractual staffing is being led by Tier 2 cities followed by Tier 1 and Tier 3 as many workers are already remotely based and the cost of hiring from Tier 1 is significantly higher than smaller cities”.
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