Why companies now-a-days prefer appointing the employees on a contractual basis?
From India, Pune
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From India, Pune
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Dear HR Member,
In the present scenario of competitiveness and in the presence of advanced IT culture, the scope for manual work is diminishing. Companies are striving for survival, and the primary focus is on profitability. The days of Mayo's concepts are long gone. The reliance on machine culture is increasing daily, leading to a neglect of the human element.
Furthermore, with the availability of a more literate workforce, continual hiring will become burdensome, pushing companies towards opting for temporary hires.
From India, Visakhapatnam
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6In the present scenario of competitiveness and in the presence of advanced IT culture, the scope for manual work is diminishing. Companies are striving for survival, and the primary focus is on profitability. The days of Mayo's concepts are long gone. The reliance on machine culture is increasing daily, leading to a neglect of the human element.
Furthermore, with the availability of a more literate workforce, continual hiring will become burdensome, pushing companies towards opting for temporary hires.
From India, Visakhapatnam
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Hi! I would like some more inputs.whether contract is all or only workers or workmen.or contract for technical personal or administrative staff,please specify.the said contract for whom.
From India, Hyderabad
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From India, Hyderabad
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Hi! I would like to add some more inputs. Whether the contract is for all skilled workers or only unskilled workmen, or for technical personnel or administrative staff, please specify. Who is the said contract for?
From India, Hyderabad
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From India, Hyderabad
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Dear Mihika,
Companies appoint employees on a contractual basis because in a contract, the job is defined. It covers the terms, responsibilities, and scale. Secondly, it gives the employer a chance to review and decide whether to renew the contract or terminate it, depending on the performance appraisals of employees.
Regards,
Fay
From Kuwait
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Companies appoint employees on a contractual basis because in a contract, the job is defined. It covers the terms, responsibilities, and scale. Secondly, it gives the employer a chance to review and decide whether to renew the contract or terminate it, depending on the performance appraisals of employees.
Regards,
Fay
From Kuwait
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Dear All,
I am from the IT industry, and my employee turnover is high. Just like everyone else, we are hoping to start hiring employees on a contractual basis or on bond so that we know they will be with us for a specific time. The biggest problem is finding an effective contract agreement sample or bond letter/agreement so that I can start using it. Can someone help me with this and pass on the contracts if possible?
Looking forward to hearing from you all.
Regards,
Alex
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I am from the IT industry, and my employee turnover is high. Just like everyone else, we are hoping to start hiring employees on a contractual basis or on bond so that we know they will be with us for a specific time. The biggest problem is finding an effective contract agreement sample or bond letter/agreement so that I can start using it. Can someone help me with this and pass on the contracts if possible?
Looking forward to hearing from you all.
Regards,
Alex
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Hi,
Entering into a contract through a staffing company is much better as they take care of complete employee administration on your behalf. They also provide benefits like mediclaim and personal accident insurance, etc.
Thank you.
From India
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Entering into a contract through a staffing company is much better as they take care of complete employee administration on your behalf. They also provide benefits like mediclaim and personal accident insurance, etc.
Thank you.
From India
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Dear Mihika,
That's true. Nowadays, employers prefer to hire employees on a contract basis. It reduces the workload and necessary headaches of the Human Resource Department.
Main Benefits are:
1) You need not comply with the Employees' Provident Fund Organization and Employees' State Insurance Corporation. Your only responsibility is to check whether the Principal is deducting their PF and ESI or not.
2) You need not follow the long procedure of job appraisal. You need to evaluate contractual employees' performance but not for salary increment.
3) It's easy to terminate contractual employees.
4) Distribution of payment (salary) is easy.
There are lots more.
Thanks,
Debajyoti
From India, Gurgaon
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That's true. Nowadays, employers prefer to hire employees on a contract basis. It reduces the workload and necessary headaches of the Human Resource Department.
Main Benefits are:
1) You need not comply with the Employees' Provident Fund Organization and Employees' State Insurance Corporation. Your only responsibility is to check whether the Principal is deducting their PF and ESI or not.
2) You need not follow the long procedure of job appraisal. You need to evaluate contractual employees' performance but not for salary increment.
3) It's easy to terminate contractual employees.
4) Distribution of payment (salary) is easy.
There are lots more.
Thanks,
Debajyoti
From India, Gurgaon
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