Staffing – An Introduction and Its Importance

Staffing in normal parlance is the process of hiring and developing the required personnel to fill in various positions in an organization and as a managerial function, it involves recruitment, selection, training, development, promotion and compensation of personnel. Staffing helps in discovering and obtaining competent personnel for various jobs and efficient staff management begins by hiring the right people for open positions.

The steps involved in staffing processes include the following processes such as-

  • Manpower Planning
  • Recruitment
  • Selection
  • Placement
  • Training
  • Development
  • Promotion
  • Transfer
  • Appraisal
  • Determination of Remuneration

Staffing agencies are the firms that employers or companies turn to for filling up their workspace gap and helps organizations in getting the right people for the right job and at the right time. Hiring efficient, knowledgeable employees helps organizations in attaining a reputation for quality products and services. However, it is important to understand the differences between the common types of staffing as per the types of employment that includes-

  • Direct Hire  Staffing –

Direct Hire staffing is ideal for those job positions or postings that are permanent in nature usually with full time benefits. A staffing agency in this type of staffing  service provides the recruitment and hiring services on a full scale but its role comes to an end when the offer is accepted by the candidate (prospective employee) and the candidate directly goes to the client’s (organization) payroll. The process of direct hire is much slower as the clients may take time when making a long-term decision. This type of staffing is ideal for candidates who are not interested or comfortable in taking the risk of working on contract basis. Direct hire employees are eligible for company benefits such as retirement, health with the security of long term and permanent position.

  • Contract Staffing

The term contract staffing also known as contract recruitment involves an employment arrangement where an individual works for one company but actually is the employee of the staffing company or agency for a specified period to complete a specific task for a set of pay rate. The contract employment involves three components – the client company, the contractor, and the staffing company.

The demand for contract staffing is growing exponentially due to the benefits such as utilizing contingent staffing for special projects, to evaluate a prospective employee’s skills, and to respond rapidly to changing markets. Contract staffing is also beneficial when there is a hiring freeze in some job positions.

  • Contract to Hire Staffing

A contract to hire staffing is a mixture of temporary and direct hire services that benefits both the hiring organization and the candidate. Contract to hire staffing allows the companies the flexibility to evaluate a candidate’s capability prior to the extension of a more permanent placement offer while giving the potential employees a chance to decide if the company culture is a good fit to take the employment.

During the contract period, the staffing firm employs the talent of the candidate with the client (organizations) maintaining open lines of communication by providing consistent feedback to put the talent at ease. In case, the company provides or offers a permanent position to the candidate and is accepted by the candidate or job seeker then the talent transition from the staffing agency’s payroll to the client’s payroll takes place.

The above-mentioned staffing methods or types are usually provided in the form of different staffing services by the concerned staffing agencies.