People in India have grown up seeing their parents drool over permanent jobs for various reasons. But do today's professionals pursue the same or want to experience more in a less amount of time?

Any middle-aged working Indian would agree that a permanent job is the best form of employment. Such jobs offer everything one needs – a fixed salary, security, social benefits and sometimes, even perks like paid holidays.

However, today's youth begs to differ. "The idea of being permanently employed at a company does not appeal to me. I prefer short-term stints at various workplaces, or working on a project-to-project basis. As far as job security is concerned, if one is confident about his/her skill-set and can continue to learn from every project or contract, there will always be enough scope for work," says a Delhi-based media professional.

In a country like India, where permanent jobs are considered stable and secure, how will contract staffing shape India's work culture? Chetan Indap, founder and CEO, StaffonContract explains, "Youngsters today are looking at entrepreneurship in a big way. It will not be long before contracting, which in one form is entrepreneurship, will become a way of life." What are the impediments to contract staffing in India? "The biggest impediment is the archaic Indian labour/contracting laws. While they have been instituted with true consumer interest in mind, the formulation of the clauses and policies are not well-drafted and left to interpretations. Thus, despite the benefits, a number of companies are wary of adopting contract staffing because of an unclear government stand on the issue," adds Indap.

There are many reasons in addition to the post recession upturn that contributed to contract staffing, says Indap. He points out some of them –
Pyramid re-balancing:
Over a period of time, companies have done ad-hoc hiring based on the immediate needs. This has caused the pyramid structure of levels to be out of line with the internal policies.
Specialised knowledge:
Companies can get niche and specialised work. If companies hire such skills, then after the project is completed, there is a risk of the person remaining idle for a long time, thus becoming a cost drain on the company.
Significant cost savings: CXOs are now realising that contracting can actually help them save costs and enhance margins. It leads to a 22 per cent cost-saving upfront. Sumedha Nashikkar, head - HR, KPIT Cummins Infosystems says, "For more than a decade, contracting has been used to recruit professionals for short-term projects and fill in temporary vacancies. It presents an opportunity to create an on-demand talent pool." Even though the lure of permanent jobs is not completely over, hiring on contract provides opportunities to professionals different from those of permanent jobs. "It helps them gain experience before they take entrepreneurial routes or get experience while still undergoing education," says Nashikkar.

But what is the secret to ensuring that the corporate heads can get work done from their on-demand staff and ensure high standards of performance? "The duration of the contract as well as performance expectations from the contract hire should be communicated and agreed upon at the start of the contract, thereby addressing apprehensions if any. They should also ensure frequent feedback on performance and preference for permanent positions based on performance and eligibility," says Nashikkar.

- - Unnati Narang