What is Staffing? What Falls Outside Its Scope?

Contract staffing: An integral component of staffing

Within the ambit of staffing, contract staffing plays a crucial role in enhancing organisational success. Recent data reveals a substantial surge in freelancers and contract workers, particularly in IT, e-commerce, and startups. One trend has taken centre stage and captivated the attention of employers and job seekers alike: the remarkable surge in hashtag temp or contract staffing across sectors and industries. A considerable number of professionals in India now favour the flexibility offered by contract work. Notably, this year’s festive hiring saw a tremendous increase in volume, with a focus on hiring temporary or contract workers.

The surge in contract staffing in India is driven by the demand for flexibility, cost-efficiency, and specialised skills for short-term projects. Startups and SMEs benefit from scalability without long-term commitments, while outsourcing administrative tasks adds to the appeal. Global trends, changing workforce preferences, and seasonal demand also contribute to the shift, allowing organisations to stay agile in a competitive environment and mitigate certain risks associated with permanent employment. NITI Aayog made some remarkable revelations and forecasts in its report titled ‘India’s Booming Gig and Platform Economy.’ It projected the total employment potential of the gig economy to be 23.5 million (4.1% of the total workforce) by the year 2029–30. This will be a massive leap of 200% from the 7.7 million workers engaged in the sector at present.

Our Employment Outlook Report H2 FY24 shows that the retail industry plans to add 23.25 million square feet of mall space during the fiscal year 2023–24. The industry is implementing a hiring initiative covering both the permanent and contractual workforce. This proactive workforce adjustment highlights the sector’s commitment to sustained growth and meeting dynamic market demands.

All of this is happening at a time when the country is increasingly focusing on skill development and vocational training for their workforce. The country’s education system is realigning its goals and curriculum with industry standards. Contract workers, however, have a number of formidable challenges and concerns when it comes to safety, security, skill development, and the formal work environment.

What is not a function of staffing?

While we discuss what is staffing, understanding what is not a function of staffing, also becomes an integral part of refining perceptions in this dynamic field. In exploring the nuances of staffing, it’s crucial to delineate what falls outside its purview. Despite its pivotal role in organisational success, staffing does not encompass functions such as strategic planning, financial management, and marketing, each possessing its unique intricacies. While staffing is undeniably about people and their roles, it is not the overarching strategy that governs the entire organisation.

Staffing myths often permeate the realm of human resources, contributing to misconceptions that can hinder effective workforce management. One prevalent myth suggests that hiring is solely the responsibility of the HR department. To dispel doubts and clarify the multifaceted nature of staffing, it’s essential to recognize that staffing extends beyond recruitment and encompasses various functions essential for nurturing a thriving and resilient workforce. Find out what is not a function of staffing:

• Not exclusively an HR function: Contrary to popular belief, staffing is not the exclusive domain of the HR department. It collaborates across departments, aligning human capital strategies with overarching business objectives.
• Not a one-time activity: Staffing is dynamic, adapting to changing business landscapes. It’s an on-going, iterative process responding to market shifts, technological progressions, and organisational evolution.
• Not solely about filling positions: The process goes beyond filling positions, emphasising quality over quantity by aligning the workforce with the organisation’s strategic direction.
• Holistic organisational strategy: Staffing is crucial but not a standalone solution. It’s part of a broader strategy encompassing effective leadership, clear communication, and a supportive work environment.
• Legal compliance: While staffing involves adherence to employment laws, overall legal compliance is a distinct function, often handled by legal departments.

Understanding the scope of staffing and its multifaceted nature is essential for recognising its pivotal role in organisational success. Our latest report on ‘Optimising People Supply Chain,’ provides valuable insights into mastering the strategic nuances of staffing and fine-tuning your approach to workforce optimisation.

At TeamLease, we advocate a strategic and holistic approach for constant development. Our services include contract staffing, hiring, learning, degree apprenticeships, compliance solutions, and more. For deeper information on our services and to fulfil your staffing requirements, contact us.