- The government’s labour reform push is likely to give this sector a major boost
Source | www.thehindubusinessline.com | TE Raja Simhan
Large companies are cutting down wage cost while start-ups want to hire executives only for a short period. Now, there is a solution for both. Flexi or temporary staffing is fast catching up in India with retail, logistics, FMCG and start-ups with the IT industry taking the lead.
The new labour reforms that the government is pursuing is likely to give a major boost to this concept which is still at a nascent stage in India, compared to matured markets like the US. And recruiters are happy.
Both employees and companies will benefit from flexi-staffing. Employees can work as and when they feel, take a break and rejoin. Companies, for their part, recruit ‘just in demand’ or ‘on a need’ basis, rather than carrying a large bench.
The Indian Staffing Federation (ISF), an association for the recruitment sector, said that flexi-staffing grew at 16.3 per cent to reach 3.3 million in 2018, out of the total 463.4 million total workforce.
This industry is expected to grow at 22.7 per cent to reach 6.1 million strong workforce by 2021, according to a report on the ‘Impact Of Key Reforms On Job Formalisation and Indian Flexi-Staffing Industry 2019’ by ISF.