Third Party Employment Is Good For Career Path Or Not

I wanted to know something about third-party employment—is it good or not? I have jotted down some points based on my personal experience, and viewers also want to know our professional group's views.

I have heard that third-party employment is not good for several reasons as listed below:
1. Your job will always be at stake as it is a contractual position.
2. Your experience may not be valued as that of a regular employee because you are working on the client site (this is considered in third-party employment).
3. Being a contractual employee, when you decide to change, you might face some challenges in transitioning to a regular position.
4. Your salary and leave management will be processed by the third party, requiring you to follow up frequently.

Please share your views on this. If I am a direct role employee, even though it's a temporary position, should I join or not?

How is Teamlease as a third-party payroll provider?

I am looking into this because I am considering switching jobs and have been receiving numerous offers through third-party employment.

We can see future change. I would add one more point. Now, third-party intervention is part of the industry. Let's wait for others' views.

Hi @Pawankmr.Hr,

By your post, I can assume that you are an HR professional. If you are in the initial stage of your career, I suggest you consider taking the best possible third-party employment. As an HR professional, if you perform well, you may secure permanent employment quickly within the organization where you work. HR professionals are often in close proximity to management or higher authorities. The key is to maintain a professional approach towards them with a personal touch in your work.

Regarding your queries about "How Teamlease functions as a third-party payroll," I believe Teamlease is a well-known HR outsourcing firm operating across India.

Best wishes for a rewarding career.

Dear Maulik Dave,

Thank you for your response. Yes, I am an HR professional with close to two years of experience. I have done further research on this and have discussed it with many individuals related to the topic. According to them, there may be an issue when I am in the phase of changing organizations. The question that will arise at that time will be: "Why have you changed your employment from regular to third party?" At that moment, what should be my response?

Please suggest.

Dear Mr. Pawan,

I would like to share my experience. I have worked with an international HR outsourcing firm that had clients among India's top employers. If you aim to work with top brands, you may need to start off the rolls with them first. By demonstrating your capabilities, you may eventually transition to on rolls.

Regarding your question about what to answer when a new employer asks, "why have you changed...?"

Possible answers could include:
1) For better opportunities
2) To work with a well-known brand
3) Due to better HR policies
4) Attracted by a considerable salary increase, or any other suitable reasons.

In conclusion, I recommend taking opportunities with reputable brands and good salary increments because, in the long run, your experience and salary will be more important than your job title (on or off rolls) or qualifications. Ultimately, you are the best judge of what is better and what is best for your career. We are here to offer suggestions based on our experiences.

Best of luck.

With respect to your post herewith, I may pen some pros about third-party payroll.

First, let me take myself as an instance. My domain is procurement, but my first company is an MEP company where I deal with mechanical items like pipes & pipe fittings. Then, after 2 years, I transitioned to TATA Motors through third-party payroll.

1. You can enter branded companies like TATA, Hyundai, or any other renowned companies initially through third-party payroll only. The exceptional cases are IIT students since renowned companies typically recruit from IITs only.
2. You can gain good exposure since there will be many IIT graduates and senior professionals. However, it is crucial to build a good rapport with them.
3. My best advice is to start in payroll in the initial stage, and with that experience, switch to a better company.

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