According to a report by Spectrum Talent Management, manufacturing, IT, e-commerce, fintech, and pharma sectors have emerged as major employers of contractual staff
The demand for contract workforce is higher in the north and east India closely followed by the west and south regions, according to a report by Spectrum Talent Management.
“Temporary or contractual staffing is becoming increasingly popular post-pandemic given the adhoc demand for certain employment skills and the rise of the gig economy,” said the report which highlighted some key trends in the contractual staffing industry.
Manufacturing, IT, e-commerce, fintech, and pharma sectors have emerged as major employers of contractual staff, the report added.
Furthermore, there is an increase in the participation of women in the contractual staffing industry. According to the report, the current male to female ratio in contractual jobs is at 6:1.
“The increase in women’s participation can be attributed to the fact that post Covid new work patterns allowed the majority of women to return to work while simultaneously exploring the possibility of a second career,” it said.
However, overall, there is a 40 per cent pay difference between contractual and permanent hiring.
“Employers also prefer to extend the existing contract on completion of their tenure rather than looking out for new staff every time,” it added.
A majority of contractual staffing is done for low-level employees. Contractual staffing route is taken the least for middle and high-level employees.
Sidharth Agarwal, Director, Spectrum Talent Management said, “Recent market trends have shown remarkable growth in contractual staffing and is expected to register positive growth further.”
“Though led by the IT/ITes sector, this trend is beneficial for many employees and employers too. Some of the advantages of contractual hiring for businesses include a faster hiring process as it requires less processing time than a full-time position, and the ability to convert a contract job into full-time employment after evaluating an employee after the contract period has ended. With such flexible results, contractual hiring will continue to rise not only for functional roles but also for support job profiles like HR, admin or finance,” added Agarwal.
From an employee perspective, tier-1 city candidates are looking for skill-based/aspirational prospects in terms of new jobs as compared to the salary driven candidates in tier-2 and tier-3 cities, as per the report.
In the IT industry, people are more inclined towards a system with a minimum contract duration of six months and above.