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Contract Staffing vs. Direct Staffing - Difference & Benefits for your Company

Factory Labour - Contract Staffing vs Direct Staffing

As you look for new people to help your business grow, you may come across different terms that different recruiters and head-hunters use to describe their services. For example, some agencies offer direct staffing, while others offer temporary or contract staffing services.

The real question for you is this: "Which is the best hiring process for my organization?" To help answer this question, it is pertinent that we quickly do a comparative study: Contract Staffing Vs Direct Staffing.

To compare, we will need to first define the terms individually. Let's define and then find the benefits of each of them. This will give you a clear picture, which will ultimately help you chart the hiring plans for your company as per the requirements. Lets' get started. 

Direct Staffing

Direct staffing is sometimes referred to as direct placement. In the direct hiring process, the hiring company works to find, qualify and hire full-time staff on behalf of the client. These are usually full-time positions, but under few circumstances, direct employment may also be used to fill part-time positions.

While the hiring company handles the hiring task for direct hiring, new hires become employees of the client when the offer is made and accepted. The salaries are directly disbursed by the client company to the employees.

Contract Staffing India

Contract staffing entails hiring a workforce on a contractual basis. The contract lengths can vary depending on the need of the clients. The contract staffing hiring process is very similar to the direct hiring process in terms of how hiring is done. However, the selected candidate gets the salary from the hiring agency rather than the client. Contract staffing increases flexibility for the client. The client has the opportunity to turn the contractor into a full-time employee, based on its need analysis.

Contract Staffing Vs Direct Staffing: Let?s see the difference between contract-based employment and direct employment:

It is important to understand that there is a big difference between contract employees and directly hired employees. The differences are as follows:

  • Contract staffing, as the name suggests, entails contract/temporary positions. Whereas, direct hiring is commonly a full-time position.
  • Because direct hires have a long-term perspective, the hiring process is slower than the contract positions.
  • The contract workers are not entitled to the company benefits however, that does not mean they do not get the facilities like Provident Fund & ESIC and other statutory benefits, its certain other privileges like reimbursement on travel, long distance travel allowance etc. which they might not be entitled for. Whereas, direct jobs are covered by the benefits provided by the company.

Get the Best Staffing Solutions

We hope the above post, Contract Staffing Vs Direct Staffing, has been helpful to you. Depending on your particular situation, one of the staffing processes described here may be more suitable for your needs than the other.

Need help in deciding whether to have a contract staffing or direct staffing solution?

Weavings staffing specialists are always enthusiastic about helping the clients. Our team of recruitment experts will analyze your needs and goals and make suggestions tailored to your timeline and budget.

When you deal with Weavings, you know that you are dealing with one of the best temporary staffing services India could brag of! At the same time, Weavings is also one of the top-notch contract staffing India can boast of! In fact, we are one of the most reputed HR consulting companies that have carved a niche for themselves in providing turnkey staffing solutions to clients.

Contact us now to schedule a free consultation.

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