Contract Staffing: a Stepping Stone or a Dead End Towards Hiring?


Contract staffing services have emerged as a hot-top pick and can probably change the current workplace dimensions. It has various advantages both in terms of the employee and the employer. In the scenario where every organization wants to maximize productivity by economizing costs, contract staffing comes into the picture. What makes contract staffing a popular and most accepted method – the flexibility it offers, right? Let us find out what contract staffing is, what are its subdivisions, the Pros and cons of working with a contract staffing agency, and more.


What is Contract Staffing?

Contract staffing is one of the recruitment methods where organizations hire skilled employees based on the specific contract which outlines the terms and conditions of their arrangement. Such type of recruitment is used when employees are required to work for a certain number of hours or until the project’s completion.

Also Read – Niche vs. Generalist Cloud Staffing Recruiter

Types of Contract Staffing

Contract staffing agency offers multiple types of staffing contracts. Let us explore them one by one.

Part-time Contract

A part-time contract is the sort of contract staffing where the worker is bound by an agreement of work hours. He/she gets every opportunity and security as that of a full-time employee. The part-time contractual workforce is legally bound to lesser work hours and has proper compensation as far as those work hours. Particularly applicants who need to continue with their schooling or expertise improvement look for such a job. Are you too looking for IT contract agencies? Then, analyze your hiring needs and let us know your job requisition, our team will get you the perfect candidate you are looking for.

Fixed Term Contract

Fixed-term contracts are those which are bound by prerequisites. These agreements are generally signed for a single project and when the prerequisites of that project are met, the agreement gets terminated. A fixed-term contract might get extended for some more period of time but doesn’t stretch out in requirements. It gives fixed compensation and insurance to the workers however needs progression.

Agency Staff

In this type of contract staffing, employees are hired by the IT contract agencies but they work for companies. This happens on the grounds that many organizations partner with staffing agencies to hire candidates and get their work done. Here, the candidates work for the organizations yet are paid by the staffing agency or their direct recruiters.

Zero Hour Contract

This is a sort of contract that requires no particular time or longer period of work. This staff is required “on-call”. When there is a particular need, these staff are called for and after it is done they are allowed to work or search for promising opportunities elsewhere.

Benefits of Contract Staffing Services

Benefits of Working with a Contract Staffing Agency

Are IT staffing contract agencies worth it? Yes, they have the potential to look after your hiring needs without your much involvement in that. As a result, you save time and money. Actually, it all depends on the agency you use and what type of contract staffing services it offers, its past history of success, and if it attracts the type of candidates you need. To get unique contract staffing services, it is a duty of an employer to do a deep analysis of the IT staffing contract agency before signing any agreement.

Top 5 benefits of working with a contract staffing agency

Contract staffing services are cost-effective

When organizations choose to work with contract staffing agencies, they eliminate numerous administrative costs related to in-house recruitment and other employment exercises. Moreover, numerous contract workers just get paid for the time they work. However, if they don’t come in, employers aren’t liable for paid time off.

Contract staffing services limit the Business Liability and Risk

No enterprise wants to face a lawsuit. If you also want to lower your liabilities towards employees, better partner with a contract staffing agency. In this scenario, a contract staffing agency will take care of all formalities such as providing unemployment benefits, employee compensation, and similar other facilities.

Access to specialized skills

The key benefit of working with a contract staffing agency is getting access to specific skills your project requires. It helps you find out the niche talent with hands-on experience in similar skills that you need for your project.
Moreover, you may also be looking for expertise your existing group doesn’t have. Contract staffing agencies fetch you the right fit with a specific skill set to guarantee your project is completed effectively within the deadline.

Access to a larger talent pool

Contract staffing agencies’ primary task is to scout the best candidates from the market, therefore, they do deep research and analysis to add top talents to their talent pool. IT contract agencies have a better understanding of the tech market and know the best way to approach candidates. They can save you from candidate ghosting and other obstacles involved in recruitment.

Fulfill short-term business needs

At the point when organizations are looking for a dedicated labor force for short-term projects, recruiting full-time workers doesn’t bode well. Consequently, they go for the outsourcing option which can have security risks, loss of administrative control, and quality issues, among different issues.

Here, contract staffing agencies can be profoundly helpful as organizations by offering a skilled labor force for a limited term of time without making any responsibilities and abstaining from confronting drawbacks related to outsourcing the team.

Take some responsibility off the HR department

HR department already has enough on its plate. Managing the whole organization, taking care of all employees, internal issues, etc. keeps their temperature high. Therefore, working with a contract staffing agency can take some responsibility off the HR department.

Also, Read – Why to Extend Your Team With Remote Employees?

Escaping the ACA requirements

In some countries like the USA, companies having more than 50 employees are bound to offer health insurance to their employees. Enterprises with this much employee strength may find it difficult to fulfill this requirement.

Employers can escape from such obligations by working with contract staffing agencies. When you opt to hire employees from any staffing agency, you are not the direct boss of those employees ie. they are not considered contractors.

Prevent laying off employees

There are instances when companies lose the deal with the client. But what happens to the team that they hired for that particular project?

In such a situation, the company can do nothing but fire the employees. Laying off employees will have a bad impact brand’s name as well as costs money. A contract staffing agency can be a savior in such cases, therefore, take benefit of contract staffing services and stay away from the hassles of hiring.

Contract Staffing Disadvantage

You have seen several benefits of contract staffing, however, there are a couple of disadvantages that it conveys with it and can’t be overlooked.

Contractual staffing gives no professional stability to its representatives. Despite the fact that the compensation and the pace of development are high, candidates are continually on the run to search for other opportunities before the current agreement lapses. This influences job security and to a certain extent candidate’s morale.

Here comes the biggest disadvantage. Lawful commitments like tax paying are a piece of each worker’s life. In a full-time job, the tax commitments borne by the worker are unitary. The worker needs to keep up with the records of just one account and for the most part, for extremely durable businesses the tax reduction occurs before the year-end. Notwithstanding, in the event of contractual staffing, a worker needs to keep up with various accounts for various jobs, and subsequently, the expense estimations toward the year’s end turn into robust and tedious work.


Workplace dynamics and prerequisites have changed upside down when compared to the job market a couple of years back. Organizations regularly need the labor force to manage the recurring patterns of the business’ requests. In many such cases, contract staffing has shown a superior solution. Organizations consider contract staffing when they have projects which need extra support without long-term commitments. This aids in making the organization agile to the requirements of the market while making the organization lean and the labor force compliance management simpler. Are you also looking for a contract staffing vendor? Companies looking for staffing vendors can choose to work with PeoplActive, an IT staffing contract agency specialized in the cloud to get impeccable contract staffing services as per their unique requirements. Share your requisition today, and Hire Tomorrow.

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