Flexible Staffing Arrangement Defined
Flexible Staffing is defined as the utilization of recruiting sources and workers who are not traditional employees. Oftentimes, companies that regularly face cyclical, project and seasonal workload peaks use flexible staffing arrangements.
It is through this kind of setup that companies are able to add skilled professionals to their team without increasing their fixed costs.
Flexible staffing is similar with contract staffing where a company benefits because of recruitment flexibility especially at times when a current project requires additional work force even on short notice.
This type of staffing arrangement is very popular in the industry as it offers tremendous benefits especially in terms of time and costs.
In this article, you will learn more about flexible staffing arrangements, your options, as well as the pros and cons that you need to know.
A Background on the Emergence of Flexible Staffing Arrangements
Over the years, employers have taken advantage of contract staffing or temporary staffing by getting employees that work in shifts, in a part-time capacity, and through independent contract work. The popularity of flexible staffing arrangement comes with the need for short-term service and production goals while keeping the cost of workforce low.
Certainly, there are factors that made way for the increase in flexible staffing arrangements and these include the increasing cost of labor and employee benefits.
Factors that Influence the Popularity of Flexible Staffing Options:
Demographic Changes
In the Workforce 2000 Report, another issue gave rise for companies to reconsider the use of flexible scheduling options. It forecasted that the country’s workforce population will have slower growth as its huge percentage consists mainly of minorities and immigrants, older workers, and a minimal population of young people to engage in work. It is also predicted that women will retire relatively early and once the generation of baby boomers ages, there will also be a significant reduction in the percentage of women in the workforce.
Tight Labor Market
With unemployment rate showing at its lowest, there are lots of employers who turn to alternative approaches of employee hiring and retention. Executives are now looking into flexible staffing arrangements, flexible time, and other options for their employees.
As more people are employed under flexible staffing, companies are also looking into the issues of security and benefits as contract staffing allow cost reduction in the long run by decreasing turnover and lowering training and recruitment costs.
In a study conducted by the W. E. Upjohn Institute, it appeared that of the 550 companies surveyed, 46% have staff from temporary help agencies; 38% have short-term employees; 72% have regular part-time workers; 27% use on-call workers; and 44% use independent contract staffing solutions.
Typically, businesses with cyclical staffing needs and those with unpredictable demands depend on temporary staffing to be able to keep up with the needs of their business at a lower cost, and as businesses face a more competitive market the need for flexible staffing arrangements remain.
Your Flexible Staffing Arrangement Options
Agency Temporaries
In this type of flexible staffing arrangement, workers are provided by a staffing agency to work in a particular company for a short duration of time or to fill in a position for a current project.
Leased Employees
For this kind of setup, it is the company that leases all or a portion of its workforce on a fairly permanent basis from a leasing company, staffing company or a PEO (Professional Employment Organization). The workers get directions from the client, but the leasing, staffing companies or PEO are the ones that provide the payroll.
Contract Company Employees
For this type of setup, the services of workers are employed by a company that contracts them out to a client company. Contract company workers work at the client’s worksite and for just one client at a time, and is under the supervision of the contract company, not the client.
Independent Contractors
These workers are self-employee, and they may either perform their services at the client’s workplace or not.
Direct Hire Temporaries
These are the employees hired by the companies where they work, but for a limited period of time only. This can be classified as seasonal work or employment for a special project.
On-Call Workers
For this type of flexible staffing arrangement, workers are also employees of the companies where they work and they are employed for an indefinite span of time. These workers do not have regular work hours, but instead they are required to work on an as-needed setup, to either fill in for employees that are not around for a specific time or to assist in reducing heavy workload in the work site.
How Flexible Staffing Arrangements Help Businesses
As employers initiate flexible staffing arrangements, the setup doesn’t only satisfy the needs of the employer. This type of contract staffing solution are also initiated to meet the needs of employees while giving benefits for employers as well.
Contract Staffing Advantages for Employees:
Accommodate Lifestyle
Employees who want to spend more time with their families and engage in frequent non-work activities benefit from flexible staffing arrangements. This is perfect for those who don’t mind not having a full time job in exchange of a happier and more relaxed domestic or social life.
Improve Employee Retention
Temporary staffing employees do not threaten the positions of other full time workers, thus reducing stress in the workplace while improving job security and satisfaction.
Help for Full-Time Staff
Temporary staff help unload full-time staff with responsibilities. It is through their help that day-to-day responsibilities are allocated to allow core personnel to pursue more complex challenges and at the same time give them the opportunity to recharge as well.
Contract Staffing Advantages for Employers
Reduce Labor Costs
It is through flexible staffing that help becomes available when it’s needed, and the good thing about it is that employers can reduce labor costs as the company is spared from getting overstaffed while being able to attend on its daily staffing needs. Basically, the employer is not required to pay for unnecessary overtime because workers will be paid based on the demands of a task. Another way that it helps in saving money is that it doesn’t oblige a company to hire or train a new staff.
Gain Better Competitive Position
A company that is consistent on having more flexible control over staffing costs also gets advantages over competitors. It is through this setup when one is able to avoid stiff labor structure, enabling them to stay off economic ups and downs.
Wider, Better Selection
Companies that prefer flexible staffing arrangements get wider choices in terms of staffing solutions. This makes it easier for them to find project professionals with the knowledge and skills they need and can take on tasks according to the variety of assignments that you demand.
Seek Potential Hires
Flexible staffing arrangements allow you to observe and assess the workers that you’ve chosen for a specific project and determine if they have the potential to blend with your core staff. Getting the opportunity to evaluate a potential employee based on firsthand experience is absolutely the better option than assessing a candidate by reading a resume or through an interview.
Nowadays, the importance of flexible staffing solutions become more imminent because of the changes in the economy and workforce requirements. Choose a reputable staffing agency to find the best employees that can fill in the positions that your workplace currently demands
