Why pay parity alone may not help retain temp staff

The parity usually comes without any increments and bonuses, and with fewer leave benefits

Recent surveys have suggested that the temporary staff (temp staff) market is seeing a growth upwards of 10%, on a y-o-y basis. With salaries inching closer to that of permanent staff, the human resource industry is hopeful that the base of the temp staff will rise in the next few quarters. However, keeping aside the pay packages, temp staff in India have other issues including recognition of work, work-life balance, among others, that may lead to a slower pace of growth.

Sample this: Satish Kumar, a 28 year-old Hyderabad resident had quit his full-time job and was looking for a new opportunity, when he came across a mid-sized IT firm recruiting temp staff for sales and marketing positions. The salary sounded decent and hence he took up the job. After working in the firm for a short period, he realised that the respect given to his full-time working colleagues was missing in his case. It had nothing to do with his performance. The only problem: He was a temporary employee. He has now quit and joined an SME as a full-time employee.

Temp staff salaries have almost come at par with those of permanent staff, but the benefits haven't. Increments and bonuses are almost absent for this section of workers, with fewer leave benefits. While the pay has drawn individuals towards temp jobs, the retention rates are low.

With squeezed budgets and a cut-down on the number of new recruits, temp staffing has been the preferred mode of HR officials to get new people into the company. These individuals typically work for 6 to 15 months, depending on the size of the project. For crucial projects, usually full-time employees are preferred. It is for the other projects, where there is a huge manpower requirement that these temp staff is hired.

In most organisations, while learning and development is an important aspect of career development for employees, temp staff are totally out of this process. This, say consultants, can be a big de-motivator for the temp staff. Unless specific initiatives for temp staff is introduced, these experts fear that a sense of stagnation might seep into temp staff, especially the younger workers. Blue-collar workers, especially, are in dire need of such formal training.

While temp staffing may become an HR agenda for organisations in the future, it is imperative that the work-conditions and environment is at par with the other staff. Money matters, but so does work culture and career development. Being a temp staff does not mean that their commitment towards the project that they are involved in, is any less.