HR SUMMER PROJECT FINAL

8/7/2019 HR SUMMER PROJECT FINAL

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A PROJECT REPORTON

HUMAN RESOURCE MANAGEMENT

By

NAME:APARUPA BHATTACHARYACOURSE:PGDM

SEC-AENROLLMENT NO:010106091


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PREFACE

The following project was undertaken at GENIUS CONSULTANTS LTD., kolkata, inpursuance of the Summer Internship Project forming a part of the curriculum for thePGDM at GBS, kolkata. Summer Project is a pedagogic approach that gives the PGDMparticipants an opportunity to apply their managerial skills and classroom learning in reallife projects in an industry.Projects requires a participant to work with corporates to understand a problem orsituation, collect information, identify critical issues ,to find out reasons of a particulartrend of action, develop alternatives for addressing the trend ,prepare a plan of action,suggest a set of recommendations, report generation and presentation to companymanagement and college faculty.This report covers in details about how HR plays a vital role in the temp staffing business

and how HR can intervene in increasing the efficiency of the temp staffing business as awhole. Added to this the report also covers the details of the processes being carried outunder Outsourcing at GENIUS CONSULTANTS LTD.After analyzing the future scope and trend of temp staffing among the corporates, thereport suggests recommendations for future course of actions.


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ACKNOWLEDGEMENT

I would like to express my sincere thanks to all the concerned people who have directly

or indirectly extended their hands towards completion of this project. The project wouldnot have been possible without the constant and timely encouragement from allconcerned.Firstly, I would like to convey my sincere thanks to Prof.Debaprasad Chattopadhaya(Head Of the Department HR) and Prof. Meenakshi Khemka (Faculty Of HumanResources) for their constant guidance and mentoring throughout my project.This work could never have been completed without Mr. Y.P.Singh, President -NationalOperations Outsourcing, Genius Consultants Ltd.who not only provided me with thisexcellent opportunity of working with such a challenging and upcoming topic but alsoguided and supported me with his valuable insights. I take the opportunity to thank MsRashmi Yadav, Director ,Genius Consultants Ltd.for providing me the opportunity to

have a practical exposure with the corporates practicing temp staffing. Her constantguidance and mentoring helped me to focus on my work all the time.

Last but certainly not the least many thanks to all the valued employees in all thedepartments with whom I interacted during the tenure of my project. I sincerely thankthem for providing me with valuable inputs through conversations and feedback duringthe course of my project. Their support has been invaluable for me without which itwould have been difficult to come out with this document.


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DECLARATION

I do hereby declare that the project entitled Role of HR in Temp Staffing issubmitted as part of my Summer Internship Project forming a part of the curriculum for

the Post Graduate Diploma in Management Program at Globsyn Business School,Kolkata.The project has been done under the guidance of Mr.Y.P. Singh, President -NationalOperations Outsourcing, Genius Consultants Ltd.This project has not been submitted infull elsewhere for any reward or any degree.

Aparupa BhattacharyaEnrollment No: 010106091Batch-2007-09Globsyn Business School, Kolkata


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TABLE OF CONTENTS

SL NO TOPIC PAGE NOS

1. Introduction

1.1 Company Profile 1

1.2 Genius Company History 1

1.3 Genius Operations 2

1.4 Competitors of Genius 3

1.5 Geniuss Commitments 5

1.6 Certifications and Press News 10-13

1.7 Objective of the Report 13

2. Review

2.1 Scope 14

2.2 Present Scenario of Temp Staffing 142.2.1 The Positions 14-15

2.2.2 Types of Services Offered 15

2.2.3 Benefits of the Organization 15

2.2.4 The Temps 16

2.2.5 Different from Body Shopping 16

2.2.6 The Future 16

3. Design 18

4. Analysis And Interpretation Of Data

4.1 Temp Staffing 19-214.2 Role of HR on Temp Staffing 21-22

4.2.1 What is Alternative Staffing 22

4.2.2 Operational Considerations 22-23

4.2.3 Financial Considerations 23-24

4.2.4 Legal Considerations 24-25

4.2.5 The Final Contract 25-26

4.3 Types of Temp Staffing 26-27

4.4 Sample Survey Questionnaire

Analysis

27-37

4.5 Limitations 38

5. Other Projects 39

6. Summary and Conclusions 40-42

6.1 Recommendations 40-42

6.2 Learnings 43

7. Reference Section


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7.1 Bibliography 45

7.2 Abbreviations 46

8. Annexure 47

8.1 Sample Survey Questionnaire 48-52

8.2 Project Activity Log 53-54


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LISTS OF CHARTS AND DIAGRAMS

Sl

No

CHARTS AND DIAGRAMS PAGE

No

1.1 Map showing the places where Genius has its branches 2

1.2 Piechart Showing Competitors of Genius 3

1.3 Organizational Chart 4

1.4 Organizational Chart showing Divisional Communication

Flow (PSS)

6

1.5 Organizational Chart showing Divisional Communication

Flow(TSS)

7

4.1 Diagrammatic Representation of the three entities of temp

staffing

20

4.2 Diagram showing the comparative analysis of the reasons

of temp staffing

28

4.3 Diagram showing the proportion of the number of years of

acceptance

29

4.4 Figure representing the proportion the satisfaction level 30

4.5 Piechart showing the proportion of the respondents whoare unsatisfied with the services of the consultancies under

different category

31

4.6 Piechart Showing outsourced Employee Categorization 32

4.7 Diagrammatic representation of the role played byHR in

temp staffing

33

4.8 Diagrammatic representation of the number of respondentswho are satisfied with the services of the consultancies

34

4.9 Piechart showing the proportion of advantages derivedfrom outsourcing

35

4.10 Diagram showing a comparative study of the differentprograms undertaken by corporates

36

4.11 Piechart showing a comparative analysis of thedisadvantages of temp staffing

37

6.1 Piechart showing the relative proportion of the futurescope of temp staffing

42


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EXECUTIVE SUMMARY

As a management student I was required to undergo a Summer Internship Program in acompany to have a hands on experience about the corporate world. As an aspirant Human

Resource Management Graduate ,I undertook a training program in one of Indias leadingConsultancies having a pan Indian presence called Genius Consultants Ltd.The projectduration was of two months and the title of the project was Role Of HR In TempStaffing. Though there was a distinct topic on which I was required to work upon but theexposure provided me with a huge opportunity to learn everything from recruitment tohandling operations ,key accounts to finally disburse the salary to the associates.My entire project was designed into three parts-focusing on geniuss operations, doinga literature study of temp staffing business and finally preparing a questionnaire andvisiting the big corporate houses and meeting the HR managers and gathering

feedback about temp staffing. It was indeed a very learning experience to have a realinteraction with so many corporates.

In the first few weeks ,I scrupulously studied about the vibes of temp staffing businessand activites done .After this exercise I was able to pick out the KRAs of the outsourcingbusiness.This further helped me to find out the loopholes of the HR in the temp staffingbusiness.Along with this I was also asked to do certain literature study and then finallyprepare a questionnaire for the HR people who outsource their temp staffing to a thirdparty consultancies . My sample strength was fourteen (14).I visited them personally andgathered information ang took feedback.My entire exercise then centred around thereasons behind temp staffing,scope of HR in temp staffing ,the advantages anddisadvantages of temp staffing and finally the future prospect of temp staffing .The studyalso aimed in finding out how the efficiency of the temp staffing business can be

increased and to what extent and in what way,HR plays a vital role in the entire process.The study was qualitative in nature and needed a detailed research on temp staffing andits activities.

After all the informations were gathered, the data was tabulated with the help of severalpiecharts and bar diagrams. Finally the recommendations were made and conclusionswere drawn. Finally a report on word format was prepared .Three copies were made-onefor the company, another for my college and finally the third for my own reference.


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GENIUS CONSULTANTS LIMITED

ITS MISSION

Genius Consultants Ltd is one of Indias leading Consultancy having a blend of strongEthical Value with Professional Expertee .Its mission statement can be penned as

..

To provide innovative, professional and personalized services to candidates,associates and clients

To establish Business Associates of Genius at all major business centers in Indiawith a mission to develop and penetrate market effectively by providing value

added and personalized services to out esteemed clients all over India.

To Practice quality improvement process and achieve significant improvement inbusiness results

To develop effective strategy in order to Service our existing National Clients and

develop more esteemed Clients having presence at

the National level.

ITS VISION

Its vision for the new Millenium iswhat we dream alone is a dream,but what we

dream together is a reality.

Grow global by 2010

Strengthen the spirit and create pride in the company policies and its mission .

All India online processing of business activities with individual login forclients and associates

Establish our Company amongst the largest national players in all aspects of ourcore competency


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1. INTRODUCTION

1.1COMPANY PROFILE

GENIUS CONSULTANTS LTD.popularly known as GCL was established on the 27 th

July 1993 by an entrepreneur of great vision , Mr R.P. Yadav with an objective ofproviding Consultancy Services to the Corporate world.In a span of fourteen years,Genius diversified into Outsourcing of Manpower, Payroll, Employment Verification,HR Consulting .

Over these fourteen years Genius has become a pioneer and one of the leaders in the areaof Executive Search and Selection in India.Genius has achieved fourteen thousand(14,000)Direct Placements at Client Payroll from the position of manager to CEOlevel,more than thirteen thousand(13,000) outsourced personnel in Senior,Middle andJunior Corporate level,satisfying more than fifteen hundred(1500) clients of National andMultinational reputes.Genius has become a leader in providing innovative,professional

and personalized services to candidates and clients through Total Staffing Solution to thecorporate world.Genius has a strong team of two fifty (250) employees on the payroll.Genius started its business operations in Manpower Placements at ClientPayroll.Subsequently Genius diversified its operations into QualityConsultancy(QCD)since june 1998,with an objective to provide Consultancy forimplementation of ISO 9001.ISO 14401,OSHAS 18000,QS9000,TS 16949,HACCP andvarious other Standards relating to Environment ,Safety and Health and Quality.Geniushas carried out Certifications of ISO 9000/14000/QS9000 for seven hundred (700)small,medium and large scale organization

Genius Outsourcing Division also know as Temporary Staffing Solutions was launched

in November 2000.Genius Outsourcing Division deals with Manpower Outsourcing,Payroll Processing Services and Background Verification Services. More than Hundredand five (105) companies have received HR/Industrial Engineering /RestructuringConsultancies from Genius

GENIUS .A PAN INDIAN PRESENCE..

Being recognized as a leader in Eastern India, Genius expanded its services to almost allthe cities in India.It has presence in almost all the major Metros and Cities Kolkata,Mumbai,Delhi,Chennai,Bangalore,Hyderabad, ,Pune, Ahmedabad, LucknowChandigarh, Coimbatore, Vizag, Bhubaneshwar, Guwahati and Patna with a srong teamteam of 300 direct employees and 12,700 associates servicing 1,125 clients all over India

and abroad.

1.2 GENIUS COMPANY HISTORY.

Branches opened so far.

1st February, 1998 1st Branch opened at Chennai1st March, 2000 2nd Branch opened at New Delhi


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1st July, 2002 3rd Branch opened at Mumbai1st September, 2003 4th Branch opened at Bangalore2nd February, 2004 5th Branch opened at Hyderabad1st April, 2006 6th Branch opened at Pune

Franchisees opened so far

Genius also has nine franchisees spread all over India namely-Ahmedabad,Lucknow,Chandigarh,Visag,Bhubaneshwar,Patna,Guwahati, Kolkata(Saltlake) and Coimbatore.

1.3 .GENIUS OPERATIONS.

Figure 1.1Map showing the places where Genius has its

branches


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1.4 COMPETITORS OF GENIUS

3%10%

20%

26%

7%

3%

7%

17%

7%

Adecco Mafoi Teamlease

Genius Consultants Kelly Services First Choice

Man ower Securit A encies Outsourcin a encies

Figure 1.2Piechart showing the market share of the different consultancies and

other agencies


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TOP MANAGEMENT ORGANISATION CHART

Figure1.3Organisational Chart of Genius Consultants Ltd

NATIONAL

HEADACCOUNTS

AND COMM.

SYSTEMS

PPS

TSS

BD/BVS

LOCATION

HEAD

HR/ADMIN

/LEGAL

MANAGINGDIRECTOR


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1.5 GENIUSS COMMITMENTS

Genius Consultants ltd is committed to provide Total Staffing Solutions to the esteemedclients in terms of PERMANENT STAFFING SOLUTIONS (PSS), TEMPORARY

STAFFING SOLUTION (TSS), PAYROLL PROCESSING SERVICES (PPS),BACKGROUND VERIFICATION SERVICES (BVS) and HR CONSULTING.

I. PERMANENT STAFFING SOLUTIONS

This department consists of three types of Recruitment Solutions and they are-a)Executive Placement through databankb)Advertised Selectionc)Bulk Recruitment Projects

EXECUTIVE RECRUITMENT

The Executive Search service otherwise known as Manpower Recruitment Division(MRD) offers 3 types of executive search solutions.The Service primarily addresses recruitment of middle, senior & top level managementstaff. Genius also has an online databank of 5.6 lakh candidates through its own jobportal.(www.geniusconsultant.com)

Geniuss own online database allows speedy matching of profiles for recruitments andquick response time to client's requirements. Genius has got their own specializedsoftware, personal interview and test to match the clients criteria with the candidatesexpectation.

ADVERTISED SELECTION

Genius finds candidates through Head hunting from target industry and company for rightcandidate of employee. Networking is also another valuable means to find out right kindof candidates for right kind of job. The services rendered by Genius includeconceptualization and drafting of recruitment advertisement, selection of appropriatemedia, release of advertisement, receipt and screening of resume, preliminary interview,selection test, psychometric test, reference check etc.

EXECUTIVE SEARCH AND SELECTION THROUGH BULK RECRUITMENT

The Service is well suited for start-ups, new project manning, plant expansion, scale upof team sizes and geographical expansion of teams. The Services include bulkrecruitment within the projected timeframe, especially junior/middle level. Genius hasgot an all India network which enables quick processing of responses and manages theentire process effectively.
http://www.geniusconsultant.com/http://www.geniusconsultant.com/


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ORGANISATIONAL STRUCTURE

DIVISIONAL HIERARCHY AND COMMUNICATION FLOW (PSS)

Figure 1.4Organization Chart showing Divisional Communication Flow (PSS)

ACHIEVEMENTS

GENIUS CONSULTANTS LIMITED has 1200 Clients of National and Internationalrepute. It has already done 11250 Middle & Senior Placements in 16 Countries. Its corestrength is in recruitment of middle, senior and top management level in Sales andMarketing Accounts and Finance, IT (Hardware & software), Telecom, ITeS & HRprofessionals.

II. TEMPORARY STAFFING SOLUTION (TSS)

The buzz of today's competitive business environment is to streamline one's core

competence and strength to outsource the non core areas like payroll process andrecruitment of manpower through professional experts. Genius's OSD Division is onesuch expert. In Temp staffing the candidate remains on the payroll of Genius and worksat the client premises.TSS enables mobilization of personnel and their placement atclients identified locations Genius Consultants Ltd. payroll & Statutory requirement ofdeputed associates.

NATIONAL

HEAD-PSS

LOCATIONAL

HEAD

DIVISIONAL/

VERTICALHEADS ATLOCATION

FRONTLINE

MANAGERS/

EXECUTIVES

NATIONAL

VERTICALHEAD-H.O.


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DIVISIONAL HIERARCHY AND COMMUNICATION FLOW-(TSS)

Figure 1.5 Organizational Chart showing Divisional Communication

Flow(TSS)

RECRUITMENTS

This department is primarily responsible for matching the right kind of people from thedifferent job portals, headhunting, networking references and recruiting them on a

temporary staffing basis. These candidates are screened by the recruiters and then sent tothe clients place for final selection.

PROCESS

This department is responsible for all the operational tasks that is left behind. After thecandidate has been selected ,there are numerous accounts ,that needs to be maintained.They are-attendance, dummy attendance ,coordination for billing,collection,debtorschecklist, appointment and renewal letters, full and final settlement ,filing ofcorrespondences with the clients, advance management, and finally maintenance ofcontracts.

KEYACCOUNTSThis department is also a part of the operations department and is interlinked with theprocess department.It is responsible for Joining formalities( giving joining kit, temporaryESI card and assigning of temporary account),PF,ESI and Bank A/C opening,updation ofPF and ESI numbers in GSPPI(GenSmart Pay Package I-official software used to trackrecords),proper coordination of attendance/billing and collection with process executives,statutory compliance management at sites,disbursement,payslip delivery, associatemanagement, client management ,master data.

HO-HR/COMM NATIONALHEAD-TSS LOCATIONHEAD

DIVISIONAL

HEAD

PROCESS

KEYACCOUNTS

HEAD OF

COMPLIANCE

COMPLIANCE

RECRUIT

MENTS


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COMPLIANCE

This department is responsible for managing the PF, ESI and other Statutory claims ofthe temporary employees popularly known as associates. Genius has a separate exemptedPF fund maintained and monitored by the compliance department registered under the

Regional Provident Fund Commission. This separate Provident Fund Trust is made forinterest of the associates only. Due to the separate entity, the services have become muchmore efficient and it takes very less time now to do the PF and ESI settlements. Added tothis previously, the organization was incurring an additional interest of 1.10% asadministration Charge for PF maintenance .But now, they are saving on that with a highertime management. But this department has to send semiannual report on the claims toRPFC.

III. PAYROLL PROCESSING SERVICES (PPS)

In this process though the candidates are deputated at the principal employers place butthey are under Geniuss payroll. Genius manages the individual and consolidated pay

slip, leave summary details, bank letter with details,ESI and PF report for the month ,ESIand PF Summary for the month PT report half yearly,PF-annual characteristics,ESI-half yearly calculations and finally the income tax computations.

IV.BACKGROUND VERIFICATION SERVICES (BVS).

EVS is a time consuming and detailed task that requires highly specialized knowledgeand resources. It is also subject to numerous legal regulations.Background Verification has four services.

a) Educational Verificationb) Personal Verificationc) Professional Verificationd) Financial Verification

Educational Verification.It verifies the following:

Degrees earned

Types of Degrees earned

When the degrees earned

Duration of Degrees

Degrees in progress

Authenticity of Certificates and marks obtained

Personal VerificationsIt verifies the following

Name

Age

National/Citizenship

Marital Status

Family Members


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Address

Relationship with family members

Family atmosphere

Social Status

Family bindings and acceptability

Professional VerificationIt verifies the following

Dates of employments

Employment Gaps

Last position held

Reasons for leaving

Punctuality

Salary

Any warnings or notices against the employee

Consistency in employment

Work performance

Character

Integrity

Reference checks

Financial VerificationIt verifies the following

Bank account statements

Nature of expenses

Credit card statements

Sources of income Any loans they have taken

Any insurance policies

Any assets or liabilities

Any other investments

V. HR CONSULTING

Every organizational structure deserves a well designed HR policy. Genius provides avalue added service in this specialized field of HR Consultancy through.

a) HR Policyb) Manpower Planningc) Organization Climate Survey


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1.6 CERTIFICATIONS AND PRESS NEWS

ERA CIRTIFICATIONS

Genius is an active member of ERA (Executive Recruiters Association), a premier bodythat represents staffing companies in India. Genius has been awarded by ERA as theFastest Growing Staffing Company in India for the year 2006-2007.

PRESS NEWS

Human Capital

Geniusjobs.com, a unique job portal has been launched by Genius Consultants Ltd.,

leaders in recruitment and management consulting. Genius has launched this uniqueportal to cater to a large number of jobseekers, employers and consultants efficiently andcost effectively. Genius started its journey in the year 1993 from Kolkata under theleadership of R.P. Yadav, Chairman and managing director and gradually spread itsnetwork in Chennai, New Delhi, Mumbai and its associates in Bangalore. Genius hasestablished itself in the fields of human resources, recruitment, quality and environmentmanagement and manpower outsourcing. In a span of 10 years Genius has become apioneer and one of leaders in the area of manpower placement in India placing around5000 personnel in top, senior and middle levels in various industries satisfying 1200corporate houses of both national and international repute. The new e-recruitmentdivision of Genius Consultants will provide e better service to job seekers, employers and

consultants. Jobseekers can search desired jobs and post their resumes free. Other valueadded services include building a resume, career counseling and sending resumes to headhunters globally. Geniusjobs.com also provides support to employers and recruitmentconsultants during the recruitment process by helping then post jobs and accesses theresume database. Employers can avail free ERM software which will help then toshortlist the right resume and reject junk resumes as per desired parameters, savingvaluable time and money. The portal also provides a unique software CVMS formanpower recruitment consultants. This software helps them to carry out their entire business process online with complete confidentiality from posting jobs, calling thecandidates for interview auto-shortlisting and rejecting to raising invoice and maintainingthe entire MIS for the clients

Has HR outsourcing arrived?

According to a recent survey by Gartner Inc, 89% of midsize companies outsource atleast one HR function. Ditto for corporate India! Shares R.P. Yadav, chairman andmanaging director, Kolkata headquartered Genius Consultants, HR outsourcing gained aheadstart with Fortune 500 companies and multinationals, but now it is gaining


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popularity with large and medium sized Indian companies too, specially those withseasonal products, those seeking to restrict their overheads, and those who are proactiveand open to change. HR outsourcing is on a high because every company is thinking lean,acting smart and concentrating on core competencies.....As Yadav puts it, HR outsourcing definitely makes financial sense, provided one has

to see it a long term process. Financial gains could be direct and indirect..for example,agradual, stable increase in productivity, eradication of statutory obligations and reductionof opportunity costs.

Indian Express

Genius goes online

Kolkata based Genius Consultants, an integrated HR solution provider, has launched ajob portal called www.Geniusjobs.com to cater to the needs of jobseekers, employers andconsultants. The portal, which has a job base of 1,300 has recruitment, manpowerresourcing quality and environment and consultancy sections. The portal enables the

client to conduct online testing for the recruitments. Another feature is that the client canshortlist and reject the candidate list, saving time and money of both clients and thejobseekers.

Get headhunted by Genius

Although the unemployment rate of out country is soaring we do not need to hit the panicbutton yet because of job providers like Genius Consultants Ltd. The company which,had a very successful 2004-2005 by providing jobs to 7,400 people is now planning toopen up 15 more offices all over the country during the next fiscal.Giving this information here on Wednesday, R.P. Yadav, the managing director of thecompany said, The new offices will be opened at places like Bhubaneshwar, Cuttack,Coimbatore, Trichi, Guwahati, Nagpur and Pune. These offices will be franchise officesand will provide employment to around 175 people.Yadav feels that in the last one year the job scenario has improved considerable in theI.T, retail, healthcare sectors and biotech industry. And the cities, which have shown thegreatest improvement, are Bangalore, Chennai, Delhi, Mumbai followed by Kolkata. Headded, Although our revenue has gone up from eight and a half crore in 2003-04 to 15crore in 2004-05 the profits are not as pronounced because we had to make variousinvestments throughout the year. The investments were mainly for technologicalupgradation of the offices and of the website. Out target is to have a turnover of 30 croreat the end of the 2005-06fiscal.Currently however, the mission for Mr. Yadav and histeam is to successfully establish Geniusjobs.com. The website which was launchedbarely nine months ago has successfully provided jobs to 2,200 people, stated Yadav.He added that the USP of the site was that it provided jobs to the front liners like callcenter executives and programmers as well as to the middle and senior categories likemanagers and V.Ps with more than five years of experience. Yadav also informed. Thisis the only website which matches the profile, CV and quality of jobs available. We act asjob hunters for the job seekers.


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The Economic TimesKolkata based Genius Consultants, an integrated HR solution provider, has launched ajob portal called www.geniusjobs.com to cater to the needs of jobseekers, employers andconsultants. The portal , which has a job base of 1,300, has recruitment , manpowerresourcing , quality and environment and consultancy sections. The portal enables the

client to conduct online testing for the recruitments. Another features is that the client canshortlist and reject the candidate list , saving time and money of both clients and the jobseekers.

1. Genius attitude survey is a Likert type scale which measures 12 dimensions ofemployee attitude"

2. Genius Consultants Ltd., a city based firm is the first to start these surveys in theEastern Region".

Hindustan Times

A unique job portal has been launched by Genius Consultants Limited called thegeniusjobs.com it will cater to a large number of jobseekers, employers and consultants.

Genius Consultant was started exactly a decade ago by its present chairman andmanaging director R.P.Yadav. It has offices in Chennai, New Delhi, Mumbai andBangalore. It has already established itself in the field of management consultancy,resource recruitment and quality and environment management.

Job fair for IT executives

For those in the IT industry, the emerging destination for a lucrative career could well beKolkata.If Genius Consultants Ltd. (GCL) is to be believed, by 2010 the city is going to be the major hub for Information Technology and its enabled services. Withmultinationals such as TCS, IBM, Price WaterhouseCoopers coming up in a big way,Satyam and HSBC planning to launch their second units and special projects of Relianceand ITC Infotech in the pipeline, things couldnt have got better.Keeping this in view, GCL organized the 2nd Wand in Job Fair at St. Xaviers Collegeto provide a platform for those seeking jobs in IT, banking and insurance sectors.Presiding over a programme at the fair, G.D. Gautama, principal IT secretary of stategovernment, said the government wanted to spread the growth of IT and enabledservices beyond the city. Around 2000 candidates have visited the fair, which hasparticipation from DPS Technologies, Aviva Life Insurance, Infovision Software Pvt.Ltd., Magma Leasing and HDFC Standard Life he said. R.P. Yadav, GCL MD, said:We are planning such fairs in Delhi and other parts of the country later this year.

Job market still not bright enough in city

If you categorize the job market into three grades excellent, good and fair - I would saythe job prospects in Kolkata are fair. Even now, the rate at which companies are shiftingtheir offices from Kolkata is higher than companies coming to the city to set up shop.Delhi, being the capital and Mumbai being the business capital of India, there are severalsmall and big industries in both cities. Job prospects in these cities. Job prospects inthese cities are better than in Kolkata. But there is always a silver lining. Informationtechnology (IT), Information Technology Enabled Service (ITES), call centers, BPOs of


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retail marketing are the rising industries in Kolkata and we try to provide applicants jobsin such fields.

Sananda

1. "Placement Agencies play a very important role in the society of matching the

requirement of the company with that of the candidate."2. "This role of matching is extremely difficult because along with professionalrequirements, the attitude of the Company has to be matched with that of thecandidate".

3. "Credible agencies like Genius believe in providing best service to the client & notin becoming a collecting center for biodatas."

Amrita Bazaar Patrika

"Genius Consultants have a vide to extensive clientele including corporate giants likeShalimar Paints."

Times of India

Genius Consultants Operations

Within a decade of its operations in Kolkata, Genius Consultants has spread its wingswith office in Chennai, Delhi and Mumbai. The company now provides value-addedsolutions in executive placements, manpower outsourcing, ISO consulting, corporatetraining and HR policy framing. It has placed more than 5,000 executives in variouslevels in over 900 corporate houses.

1.7OBJECTIVE OF THE REPORT

This report aims in finding out the followings

o To find out the functions of an HR team in Outsourcing Business

o To find out the KRAs of tempstaffing business

o To find out the lacunas and reasons for inefficiency of the services rendered by the

consultancys

o To find out the areas of KRAs where HR plays a vital role

o To find out areas in which the role of HR can be improved in order to improve the

efficiency of the KRAs

o To find out reasons for its advantages and increasing acceptance.


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o And finally its disadvantages and impact on the people at large.

2. REVIEW

2.1 SCOPE

The industry is a US $140 billion business operating globally. It is a growing industryespecially for countries like India. Acquiring talent and retaining those employees in thedifferent client organizations for a substantial period of time is not an easy job in an eraof skilled workers who look for established name and positions. In this situation the roleof HR is very vital and crucial too. It has to meet the expectations of both the clientorganizations as well as that of the associates. The scope of this report aims in findingout the different roles that the HR team undertakes in staffing candidates for the tempindustries. It also aims in increasing the efficiency of the KRAs in providing the staffing

solutions .Added to this the report also focuses on the impact that it puts on people andsociety at large and how HR can significantly interfere and increase the overall efficiencyof temp staffing. Keeping in mind the present economic fluctuations and stiff competitionif the efficiency is increased significantly then ,it is the most upcoming business in thecoming years to come.2.2PRESENT SCENARIO OF TEMP STAFFING

TEMPORARY STAFFING commonly known as Temp Staffing is the fastest growingHR Trend in India which is finally catching up among the corporate world. Whileindustry experts estimate employee leasing to be $140 billion business worldwide, the

domestic staffing industry is yet to boast of big figures. The scenario is however about tochange considering the fact that in the near future 2.5 to 3 percent of the workforce in thecountry will be hired on a temporary basis. The IT industry being a trendsetter of sorts,will witness a large percentage of such hiring in the next few years.

A temp is a temporary worker with an organization who is on a third-party (staffingcompany) payroll. A well-accepted norm in global companies, many large Indianorganizations are now hiring a part of their workforce from employee leasing firms. Thereason is not too difficult to guessas organizations focus on their core businessstrengths in a highly competitive environment, the non-core functions are outsourced.The manpower for the latter is provided by the employee leasing company. The contracts

can range from three to six months, and there are no hassles normally associated withrecruiting and retaining people.

While so far, the leasing workforce was active in order to meet short-term assignmentsof companies to augment their workforce during peak periods or replace leavevacancies or sudden terminations, the current trend has seen corporates going for leasingfor specialized requirements, says Ashok Reddy, managing director of Team Lease, oneof Indias largest HR outsourcing services companies in the space of employee leasing.


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He adds that the demand for temporary workers has been fuelled by companies lookingfor greater workforce flexibility, faced with fast paced market changes, including changesin consumer demands and shorter product life cycles.

2.2.1 THE POSITIONS

It is a known fact that most companies prefer temporary staff to permanent ones,furthermore there is a growing trend of outsourcing non-core functions to outsourcedstaff. These range from accounts, front-office, sales, marketing and back-end operations.TeamLease undertakes outsourcing for diverse sectors, including banking,telecommunications, FMCGs, IT, manufacturing and retail, informs Reddy. The servicespectrum caters to functional activities involving office administration, technical support,accounts and finance, HR support, marketing and sales.

Sunil Gandhi, centre head (Mumbai) of Mafoi Management Consultants, adds that in theIT industry, positions that are largely outsourced are people at the entry level like

programmers, software engineers, networking and system administrator.

2.2.2 TYPES OF SERVICES OFFERED

Employee leasing companies offer a plethora of staffing solutions to their clients. Reddygives detailed explanation of the services that Team Lease provides. It includes:

Temporary staffing: Enabling the client to respond to short-term temporary and/orflexible manpower needs with specific skill set requirements or for supplementing theworkforce. These services could be of a part-time, full-time or job sharing nature.

Temporary-to-permanent services: The client can hire associates as temporaryemployees for a trial period of employment; after a satisfactory trial period, a companyhas the opportunity to add a temporary worker to its permanent staff; by moving theemployee from Genius payroll to that of the business client.

Long-term contract: Corporates can opt to enter into assignments for long-term andindefinite periods of time with Genius associates.

Managed services: Genius Consultants Ltd. provides the onsite management of thecontingent workforce at the client facility. It retains the responsibility for the supervisionof the leased employees as well as the accountability for the results of the facility or

function that have been leased.Mafoi also offers contract staffing, flexi-staffing andmanaged services and has more than 6,000 people on contract employment. The companyhas 30 offices all over India. Manpower Inc, a recent entrant in India, also provides arange of solutions to its clients across the value chain. A world leader in staffingsolutions, it provides workforce management solutions and services to 4,000 customers in63 countries.

2.2.3BENEFITS TO THE ORGANISATION


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The trend of temporary staffing has been popularized in India by MNCs who have beenaware of the benefits in their experiences in other countries. The advantages are many.The opportunity to concentrate on core areas as non-core areas are taken care by experts,benefits of scale, long-term cost benefits and a responsible employer image, states RohitMathur, general manager, workforce solutions India, Manpower. There is flexibility of

employment, and ease of recruitment and replacements, adds Gandhi of Mafoi. Hereminds that statutory complexities are also taken care of by the staffing company. Mostindustry experts agree that there are no flip sides to the arrangement, Mathur howeverpoints out that there is often a misconception that this is an extended payroll service.

2.2.4 THE TEMPS

Who constitute the growing number of leased employees? This question takes specialsignificance in a country like India, where job security is an integral part of ones psyche.The range is astonishingly varied. People who want short-term options, freshers wantingto gain experience, experienced people for specific experience and of late even top

management guys for interim management options, answers Mathur, not forgetting toadd that it does provide a reasonable secure and dignified employment option. Reddyagrees that the biggest beneficiary of temporary employment in India have been freshers.The workforce available for such temporary employment has existed in excess ofdemand in the Indian context; and increasing manifold in todays date given the dynamicmarket conditions, hence corporates are looking at leasing as the viable option to meettheir short-term manpower needs. The attitude of todays workforce, he believes, isdriven by rewarding employment opportunities coupled with career guidance andflexibility to choose the nature and duration of work. Furthermore, many employeeschoose temporary employment as an avenue to exhibit their talents to the clientorganization, which could be a stepping-stone to a full-time permanent career. Temporary

employment has often been an effective entry route into big companies. And, is itpossible to find top performers among the temps? Yes, but one should remember thatsuch people are employed typically for non-core areas and attracting top class talent fornon-core is an issue, it has nothing to do with temp staffing as such, answers Mathur.Reddy however claims that the leasing model attracts management talent far above thecommodity-level.

2.2.5 DIFFERENT FROM BODY SHOPPING

Many often confuse employee leasing with body shopping. Reddy explains thedifference: Temping cannot be compared with body shopping as the former requires amuch higher level of involvement by the outsourcing partner with the leased associates inorder to manage and retain them. It is also not possible for traditional search firms tooffer the specialized services normally provided by an employee leasing company. Thetemping route requires specialized talent at the senior level. While traditional placementcompanies approach business in a transaction mode; workforce suppliers need to devotebandwidth through its people and process teams in servicing customers (the client andleased associates) on a recurring basis, he states.


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2.2.6 THE FUTURE

Temporary staffing is expected to grow exponentially in the country, in the near future.It is the quality and ease of availability of manpower that would define the roleemployee leasing organizations stand to play, not only in non-core functions but alsocertain core business areas of organizations, points out Reddy, adding that it isimperative for outsourcing partners to move from only employee leasing to completeend-to-end activity management. It is also necessary for outsourcing partners to beequipped with vertical and functional specializations, with key differentiators customizedto the Indian employment scenario.

In a recruitment market where the concept of full-time employment is increasingly

becoming a thing of the past, temporary staffing is emerging as the viable option.

Advantages Of Temporary Staffing

o The opportunity for organizations to focus on core areas

o Flexibility of employment

o Ease of recruitment and replacement

o Long-term cost advantages

o Benefits of Scale

o Tax deductions

Added to this there are also there are several disadvantages also. They are

o Less productive than the permanent counterpart

o Employee replacement backup

o Increase in the number of lawsuits


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3. DESIGN

As a Summer Intern in Genius Consultants Ltd.,I was asked to write a paper on Role ofHR on Temp Staffing.My entire project was divided into the following steps .

FOCUSSING ON GENIUS

Genius being a consultant itself, I was asked at first to focus on the different activities performed in different departments under TSS-Recruiter, Process, Key accounts andCompliance. Thus, inorder to understand the temp staffing business and to identify thefunctions of the HR team in Outsourcing, I was asked to understand the operationalactivities of the HR team in temp staffing. This exercise not only gave me an insightabout the role of an effective HR team in Outsourcing business but also helped me to

identify the KRAs of the HR team and how its efficiency can be improved.

READING ARTICLES AND THESIS PAPERS ON TEMP STAFFING

The paper on which I was working on is a very recent phenomenon. Added to this it wasa descriptive research project which needed extensive study. So, I searched the internetextensively and read a number of research articles on temp staffing and Outsourcing. Thishelped me to form an idea on the current trend on temp staffing business in India andabroad, the reasons behind corporates resorting to temp staffing concept from permanentstaffing.

SAMPLE SURVEY QUESTIONNAIRE

This report entails me to find out the role of HR in temp staffing which covers thefollowing:

o Reasons for temp staffing

o Advantages of temp staffing

o Disadvantages of temp staffing

o Future prospect of temp staffing

o To find out the lacunas of the KRAs of HR in temp staffing

In order to derive to any conclusion, information regarding all the above mentionedissues needed to be gathered. Since my report was more of research based and descriptivein nature, primary data was essential in order to validate the my own findings.So,a small

survey was conducted having a sample size of fourteen(14) respondents. The sampleconsisted of companies selected randomly covering almost all the major sectors. Thesurvey aimed in answering the aforementioned issues and was targeted to the HRprofessionals and their views. I tried to cover companies from almost all the sectors fromIT, Infrastructure, BPO,to Electricals,Hotels, Insurance ,Airlines, Shoes and finallymanufacturing.


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4. ANALYSIS AND INTERPRETATION OF DATA

4.1 TEMP STAFFING-a snapshot

Temporary staffing popularly known as Temp staffing in the corporate jargon is thefastest growing human resource trend .Though the concept is yet to capture the Indianmarket and take a lion share, but it is gradually taking its shape. It can be said that it is themost preferred method of staffing among the corporates in todays world. A temp is atemporary worker with an organization who is on a third-party (staffing company) payroll but is working on the principle employers floor. Rising input costs and toughcompetition is forcing the companies to focus on their core activities and increase their

business efficiency. Thus companies are trying to reduce their expenditure on non corefunctions and lessen unnecessary liabilities by outsourcing employees in non-core areasto a third party employer who recruits and also manages the payroll of the tempemployees working on their premises. It has been calculated that the cost incurred by thecorporates in the aforesaid functions for temp employees is much less than theirpermanent counterparts as they are saving substantially on PF, ESI and other statutoryliabilities .When an employee is outsourced to a third party staffing company orconsultancy, it is the responsibility of that consultancy to maintain the statutory liabilitiesof the temp worker called the associates and take care of the PF, ESI and other statutorybenefits. In case if the associate falls under the Gratuity benefit slab and claims forgratuity, it is the responsibility of these consultancy to give him/her the benefits.


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Figure 4.1 Diagrammatic Representation of the three entities of temp staffing

Advocates of the temp recruitment model say it helps companies to remain agile,enabling them to expand and contract their workforce and their expenses with the flow ofthe market. Because companies can select people with the exact skills they are seekingfor a specific amount of time, temps are often an ideal, if temporary. More and morecompanies are beginning to understand what benefits these short-term assignments can

bring to an organization. Temping allows companies to hire temporary staff to cater topeak demand conditions, hire staff with specialized skills for projects of short duration, orterminate temporary staff when demand falls

Temp jobs offer flexibility to both employees and companies. Candidates can choosewhen, where, and how they want to work. Companies get the skills they need to keepfully staffed during busy times. Temp jobs give flexibility to the employees so it givestime for them to pursue non-work interests.

ASSOCIATE

OR

CONTRACT

LABOUR

TEMP AGENCY

OR

CONTRACTOR

PEO

OR

COMPANY

COMMON

PLATFORM

FOR TEMP

STAFFING

BUSINESS


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Contract jobs provide a bridge to permanent employment. Candidates can try outprospective employers and showcase their skills towards a permanent job. Most of thecontract workers feel that its a way to get a permanent job, and also there can arise achoice among the temp workers where they select and move on to get a permanent job,else they can find another employer and try for a better job. Even from the companys

perspective they have the choice to offer the temp worker for the permanent position. Thebiggest advantage from the companys view is that it has lesser number of employees onthe payroll and by that it saves on all functions and all related costs like recruitment,payroll, training and development benefits, bonus, leave with pay and all such legal andstatutory provisions and secondly it helps the company to buy skills rather than developskills. According to Naveen, a contract employee in Hindustan Unilever Ltd., commentsthat the company does not have to pay for any PF and also they save on Tax etc, wherethe company has to pay all these for permanent employees, and bank account need notbe provided for temps, they do not have us in the book of account. Many candidateschoose contract work as an employment option. They can select their work schedule andchoose among a variety of diverse and challenging assignments. Most of the contract

workers prefer this alternative arrangement over traditional employment. Employeesprefer to work for a staffing company because they like the diversity and challenge ofdifferent jobs. Candidates gain new skills or polish their skills through the variety of jobsthey are assigned to. Most of the Temp workers do gain new skills through theirassignments.

4.2ROLE OF HR ON TEMP STAFFING-FindingsTo remain major players in this critical arena, HR professionals need to understand theoperational, financial and legal aspects of alternative staffing strategies.

Managing a company's human resources, already a challenging task, has become more

difficult with the proliferation of alternative staffing options. One alternative alone -temporary staffing - has evolved and grown into a nearly $40 billion industry, largely inresponse to corporate demand. Sophisticated employers seek tailored solutions to staffingproblems, rather than simply increasing payroll when increased productivity is needed.

Although most companies rely on some alternative staffing arrangements, thosearrangements often develop haphazardly or on a departmental basis, rather than as part ofa comprehensive staffing strategy managed and administered by HR professionals. Insome companies, employees from non-HR disciplines such as purchasing, budgeting oraccounting have begun to take the lead in making those arrangements. But HR does nothave to - and should not - accept a reduced role in this critical arena.

Only HR professionals have the unique perspective and qualifications to evaluate acompany's overall staffing needs, develop a comprehensive staffing strategy and, withsenior management's approval, administer that strategy. Too often, purchasing agents orcost accountants who take on this task focus on the unit cost of employees, while givingshort shrift to critical human factors such as morale, training and development, and building team spirit. But as HR professionals know, those factors translate intoproductivity which, in turn, leads directly to profits.


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The need for alternative staff should not set up a battle between purchasing and HR. Justas HR managers typically defer to purchasing when a new product is needed, purchasingshould be subordinate to HR when staffing decisions are made and policies adopted.Purchasing and cost accountants simply do not share the experience and training HRprofessionals have in making sure organizations have the right human resources in the

right place at the right time to do the job most productively and cost effectively.

To develop a comprehensive staffing strategy, HR professionals must thoroughlyunderstand alternative staffing, particularly the distinctions among the variousalternatives.

4.2.1WHAT IS ALTERNATIVE STAFFING?

In conventional employment, the organization directly hires, supervises, pays wages orsalaries, and provides benefits to individuals; both employer and employee typicallycontemplate a relationship of indefinite duration. All other staffing arrangements are

considered alternative. But the alternative category includes many different types ofstaffing arrangements.

According to the most recent Bureau of Labor Statistics data, about one of 10 U.S.employees is employed in an alternative working arrangement. In a typical corporation,conventional employees may make up about 60 percent of the workforce, with theremaining 40 percent divided among various types of alternative staffing. The 12 mostcommon types of staffing arrangements are defined below.

In developing a comprehensive staffing strategy, HR's first task is understanding theadvantages and disadvantages of each type of arrangement from three key perspectives:

operational, financial and legal. Armed with that knowledge, they can then match theappropriate staffing solution to their employer's specific business needs and objectives.Then, one or more agreements with appropriate staffing vendors can be negotiated andexecuted.

Which alternative staffing solution will work best depends on many factors, including thefunctions to be performed, time and financial constraints, and concerns about legal risksand liability. There is no one-size-fits-all solution. On the contrary, most organizationsbenefit from using several arrangements simultaneously.

4.2.2. OPERATIONAL CONSIDERATIONS

In any situation, the optimal staffing solution produces the correct number of qualifiedworkers for the job in the most cost-effective manner. HR professionals must never short-change operational requirements - getting the job done should be the paramountconsideration in any staffing strategy. Even the most elegantly designed staffing strategywill fail if line managers do not continuously see results.


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When developing a staffing strategy, pay careful attention to the transition period,whether from regular to alternative staffing, or from one type of alternative staffingarrangement to another. The transition must be carefully planned and implemented inphases, with advance notice to all affected managers and employees. Many well-designedstaffing strategies have been short-circuited because of confusion and problems during

this phase.

Different alternative staffing options require different emphasis in planning. For example,clear communication and written explanations to managers and employees are oftenenough for the transition to an arrangement with a Professional Employer Organization(PEO), because employees' daily work assignments and supervision should hardly beaffected. In contrast, outsourcing a function may lead to layoffs or transfers of regularemployees to another company entirely, so the planning process must be considerablymore detailed.Time differentials must be factored into arrangements, also. Converting toa technical contract service in lieu of independent contractors can be implementedquickly. But converting from multiple vendors to a master vendor program may take a

full year. Maintaining successful operations during that period will be vital.

A word of caution about master vendor programs

There is significant controversy in the staffing industry about the legality and propriety ofpayroll transfers of temporary employees from one staffing firm to another. One suchcontroversy in New Jersey culminated in a 1996 jury verdict of $250,000 against themaster vendor, which had been sued for so-called temp-napping - taking several dozentemporary employees from the staffing firm that had originally assigned them to theclient company. When entering into a master vendor arrangement, be sure to take intoaccount the concerns and legal rights of outgoing staffing vendors. Once the transition

period is behind you, focus on maintaining the staffing solution to meet operationalneeds. Be flexible; let cost concerns and operational requirements drive the staffingstrategy, not vice-versa.

4.2.3FINANCIAL CONSIDERATIONS

HR professionals who carefully assess the costs associated with each staffing option cancounter inaccurate but widespread perceptions that they are not attentive to bottom-lineconcerns, and that HR programs are all expense items the revenue producers must workhard to pay for. Carefully managing a sophisticated alternative-staffing strategy gives HRan opportunity to prove otherwise.

Each staffing option is priced differently and all have both indirect costs and direct costs.For example, using traditional temporary employees is attractive because of theirrelatively low hourly cost, but may increase training costs, produce more absenteeism,interrupt work flow and impair productivity. Those indirect costs must be added to thewage rate to gauge the true cost of using many short-term temporaries, rather thanoutsourcing the function, implementing a temp-to-lease program, or engagingindependent contractors for specific projects as needed.


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In assessing an alternative staffing strategy's cost, the benchmark should be the differencebetween the cost of getting the same volume of work done at the same quality and in thesame time frame by regular employees and the cost of using alternative staff. Whenbudget analysts complain that the company is over budget on temps, they rarely comparewhat it would have cost to have the same volume of work done by conventional

employees.

Negotiating strategies. HR professionals who want to manage alternative staffingarrangements must become tough, but fair, negotiators. Alternative staffing arrangementsrequire HR professionals to manage business relationships with independent staffingfirms, many of which are larger than their clients and more sophisticated about staffing.

Negotiating with a staffing firm is not strictly a price-and-terms deal that you take orwalk away from. Because the staffing firm will be an integral part of your corporateculture for a long time, and will play a significant role in helping meet your businessobjectives, it should be viewed as a partner, not an adversary. By better understanding the

business and operations of staffing firms, HR can more effectively fine-tune thenegotiating strategy to obtain the lowest feasible cost.

Negotiating the best price does not mean gouging the staffing firm. If you force it toagree to a price much lower than what other clients are paying, the firm will likely placeits highest qualified, most productive employees or consultants with other clients.

But do not be reluctant to insist on volume discounts, rebates based on usage, and freevalue-added services. Many staffing firms offer comprehensive training and cross-training programs, and they are often willing to allow a client's regular employees to takeadvantage of their training facilities. The National Association of Temporary and Staffing

Services estimates that staffing services spend more than $250 million annually on job-related skills training. Competitive bidding is often a useful cost-control technique, butevaluating the true cost of an alternative staffing strategy is far more complicated thanevaluating the best price for office furniture. When engaging the services of people,remember that reliability and productivity vary widely. Consider building on an existinggood relationship with a staffing vendor, rather than simply awarding a contract to a newfirm that promises the lowest hourly rate per person. You may get what you pay for.

Similarly, micromanaging a staffing firm's business methods to keep your direct costs aslow as possible may produce unintended negative consequences. For example, somecompanies try to dictate the staffing firm's markup by stipulating the bill rate (what theclient firm pays) and the pay rate (what the temporary worker is paid), but this approacheliminates the incentive for the staffing firm to be as creative as possible in finding theright person for the job at the lowest cost. By negotiating only the bill rate, you give thestaffing firm a tremendous incentive to work hard for maximum profit per person placed.

Unlike purchasing departments or accountants, HR professionals must be able to do morethan just negotiate the best price for an alternative staffing solution. They must be able tocompare quantitatively the costs of completely different staffing arrangements, taking


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into account direct and indirect costs and operational concerns, while factoring insupervision and control issues as well as potential legal liability under each option. Forexample, once HR decides to use a PEO such as an employee leasing firm, the costnegotiations are fairly circumscribed. But deciding whether to go the PEO route, whichPEO to use, and how that decision affects overall benefits administration and staffing

clearly falls in HR's domain.

4.2.4LEGAL CONSIDERATIONS

Before entering into any alternative staffing arrangement, HR professionals mustunderstand, and advise management of, the legal implications and potential liabilities thatarise with each type of alternative staffing arrangement. There are legal implications in both the relationship with the staffing firm and the relationship with temporaryemployees working at the company's site. Potential liability varies enormously dependingon the nature of the staffing arrangement. A developing legal doctrine, sometimesreferred to as co-employment, summarizes the legal relationship, rights and obligations in

some alternative staffing arrangements. In traditional temporary help models, the staffingfirm and its client are likely to be viewed as co-employers, or joint employers, undermost employment laws. But the further the relationship departs from that model, the moredifficult it becomes to determine whether or not a co-employment relationship exists.

For example, in a true outsourcing relationship, courts may view only the staffing firm asthe employer obligated to comply with the employment laws. But in some cases, theclient company alone may be liable for a legally invalid staffing relationship. Last year, acourt found Microsoft Corp. had misclassified workers as independent contractors; thecompany had to pay back taxes and penalties, and the workers were retroactively eligibleto participate in certain benefits plans available to conventional employees.

Potential liability for coemployment varies significantly, depending on two principalfactors: the context in which the specific claim of liability is asserted and the specificnature of the alternative staffing arrangement.

4.2.5THE FINAL CONTRACT

Once human resource and management decide on the desired alternative staffing optionand identify a qualified staffing firm, the terms of the transaction must be put intowriting. Learning the mechanics of negotiating agreements is easier than arriving at thesubstance of what the agreement is supposed to produce: highly skilled and qualified

people to perform specific tasks.

Since human resource professionals are expert in the latter, they should not relinquishcontrol of the process when it reaches the contract stage. Instead, they should take thelead and work with legal counsel experienced in writing staffing contracts. Remember,agreements do not create an understanding, they record it. The best agreements accuratelyand precisely reflect the underlying transaction.


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While the terms of the agreement necessarily vary depending on circumstances, here area few general points to remember:

* Beware of preprinted or standard forms: When negotiating an important contract, youmust understand and agree with every clause. Anything you don't understand should not

be in the agreement.

* Clarity is essential - keep your contract simple and straightforward. Clearly define therespective rights and obligations of both sides. Resist the temptation to leave ambiguousprovisions for later interpretation.

* Consider including an alternative dispute resolution provision.

* Make sure the agreement includes a simple opt-out procedure if the company isdissatisfied for any reason - be wary of fixed-term agreements.

* Negotiate clear and precise provisions for what happens when the relationship ends orthe contract expires - these are the most likely times for disputes to mushroom intounnecessary litigation.

HR professionals can best serve their organizations by demanding a role in themanagement of alternative staffing that is comparable to the part they play in managingstaffing policies and practices for conventional employees. HR practitioners candemonstrate leadership in staffing - an increasingly important component of theirprofession - by developing a comprehensive strategy.

4.3TYPES OF TEMP STAFFING

Today's alternative staffing options are flexible and creative enough to meet varied needsof employers.

1. Traditional temporary help. In the traditional scenario, a person is recruited, tested,screened and employed by a temporary help firm. The temporary firm assigns people towork at clients' sites, generally to support or supplement the workforce to coveremployee absences, temporary skill shortages, special assignments or projects of finiteduration. Temporary employees may be obtained from many different servicessimultaneously. Some temporary help firms specialize in particular industries or specifictypes of personnel.

2.Long-term temporary assignments. Many companies now use temporary employees tosupplement their regular workforce on an ongoing basis, rather than simply as short-termreplacements. The overall. size of the temporary workforce ebbs and flows depending onworkload, thus enhancing the stability of the employer's core group of regular employees.

3.Master vendor arrangements. In these arrangements - sometimes referred to as an on-site program or vendor-on-premises - one staffing firm supplies all needed temporary


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employees, which consolidates billing and invoicing, and streamlinesadministration.Generally, the master vendor will assign one or more of its employees towork on the client's premises to coordinate all job orders, orient new temporaries, overseescheduling, compile reports and statistics on temp usage, and perform otheradministrative tasks.Master vendors often engage staffing-firm subcontractors (secondary

suppliers) to help meet the client's supplemental staffing needs. In such cases, the on-sitecoordinator serves as liaison with those firms.

4.In-house temporary employees. These are people employed directly on the company'spayroll on an explicit temporary basis. Sometimes referred to as "floaters," they typicallyrotate among departments, depending on work requirements. In-house temporaries arenot usually eligible for benefits programs.

5. Payrolling. In payrolling, the company needing help identifies specific people andrefers them to a staffing firm, which employs them and assigns them to work at thecompany. The staffing firm oversees the pre-employment process, administers the

payroll, retains employment records, provides workers' compensation coverage, absorbsunemployment costs if the person is laid off, and locates replacements when necessary,usually for a lower cost than that charged for traditional temporary employees.

6. Part-time employees. Employees scheduled to work less than a regular work week onan ongoing basis may be on the company's payroll or assigned through a temporaryservice. Their eligibility for benefits depends on various factors, including the number ofhours worked and the terms of the company's benefits plans.

7. Independent contractors. Self-employed individuals whose services are engaged on acontract basis are hired to perform specialized tasks generally requiring a high level of

independence, judgment, skill and discretion. Independent contractors are compensatedon a contract or fee basis, are issued Form 1099s, and are free to render services to otherorganizations. People who work as independent contractors must genuinely satisfy thelegal criteria for that status, or the employer may be held liable for payroll taxes, benefitsand other payments.

8. Contract technical workers. Highly skilled technical workers - often professionalssuch as engineers, electronic data processing specialists or database architects - aresupplied for long-term projects under contract between the company and a technicalservices firm. These professionals often travel or work on projects far from their homes,and may have multi-year or indefinite assignments.

9 . Employee leasing. A company may transfer all employees, substantially allemployees, or sometimes just the employees at a discrete facility or site, to the payroll ofan employee leasing firm or Professional Employer Organization (PEO) in an explicit joint-employment relationship. The PEO then leases the workers back to the clientcompany and administers the payroll, provides benefits and benefits administration,maintain personnel records, and performs most of the functions normally handled by anHR department.


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10. Outsourcing or managed services. In these arrangements, an independent companywith expertise in operating a specific function contracts with a client company to take fulloperational responsibility for performing that function, rather than just supplying personnel. Companies usually outsource functions peripheral to their core business -security, landscaping or food services - but the range of functions companies are

outsourcing is increasing. Some companies have outsourced the task of managing theiralternative staffing programs.

11. Temp-to-perm programs. These employees are hired on a temporary basis - generallythrough a temporary help firm - with the understanding that if they perform competentlyfor a specific period they will receive offers of regular employment.

12. Temp-to-lease programs. In these arrangements, a company contracts with two(usually affiliated) staffing firms, generally a temporary service and a PEO. Thetemporary service recruits, screens, interviews, tests and assigns its employees as long-term temporaries at the client company. After a negotiated period of satisfactory

employment, the temporary employee is "promoted" to leased employee status andtransferred to the PEO's payroll, becoming eligible for specific benefits through the PEO.

4.4 SAMPLE SURVEY QUESTIONNAIRE ANALYSIS

Since I was asked to find the role of HR in temp staffing, I prepared a Questionnaire ofqualitative nature among a sample size of fourteen(14)companies,selectedrandomly.Though its a recent phenomenon, Temp Staffing is practiced by almost everyorganization nowadays.So in order to reduce any error in sample selection ,therespondents where selected randomly covering almost all the major sectors eg IT,Infrastructure, BPO, Electricals, Hotels, Insurance, Airlines, Shoes and finally

manufacturing.

The responses received from the questionnaire are analyzed below one by one.


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###REASONS FOR OUTSOUCING TEMP STAFFING

0

1

2

3

4

5

6

7

8

9

10

Concentrate

more on core

activities

Legal

Obligation

Easy

recruitment

andreplacement

Cost

reduction

Statutory

Complexities

Specialised

Vendor

service

Figure 4.2 Diagram showing the comparative analysis of the reasons of temp staffing

Explanation

Here in the above cylindrical bar graph the X-axis defines the reasons among thecorporates for outsourcing temp staffing from permanent staffing .And Y-axis defines thenumber of respondents.From this bar graph it is well understood that corporates mainly outsource temp staffing

so that they can focus more on the core activities of the organisation.But it can inferredthat concentrating more on core areas,flexible and easy recruitment and finally the costreductions are the main reasons for any organisation for outsourcing.Though there areother significant reasons also,like reducing legal obligation,statutory complexities andSpecialized vendor services.It was found that in Call Centres like Vodafofone CustomerCare Services,there are specialized call centre managers who are also outsourced and arecontractual staffs.The reason stated for a managerial post being outsourced is to getspecialised vendor service.Apart from a number of agencies and consultancies ,there arecertain specialized thirdparty vendors who has a wide pool of specialisedcandiadates.Corporates thus, tie up with them and are able to get a varied pool of skilledcandiadates required for specific jobs at a much lesser cost.

Thus in todays globalised environment it is the demand of the hour to have a competitiveadvantage over the others in terms of

o Price

o Quality

o Delivery Dates

So, for arriving at an optimum efficiency level in all the three, it is the necessity onthe part of the organisation to focus on its products/services,and to cut down the cost.


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###NUMER OF YEARS OF ACCEPTANCE

21%

14%65%

1

Figure 4.3Diagram showing the proportion of the number of years of acceptance

Explanation

The above piechart shows the number of years of acceptance among corporates.About 65% of the respondents said that they are outsourcing for more than ayear,21% informed that they are doing for less than a year and the rest i.e.14%remarked that they are outsourcing only for the last 1 year. Thus most of thecompanies are Outsourcing the Temp Staff for more than a year. From this

information, it can be inferred that Outsourcing of Temp Staffing though a recentphenomenon is a well accepted practice among the big Corporate Houses and HRProfessionals .It is meeting the objective with which it was formulated and so is therefor quite a substantial period of time.Temp Staffing is in its penetrating stage and willcover almost all the sectors keeping in mind the fluctuations of the economy andbusiness architecture.


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###SATISFACTION LEVEL AMONG THE CORPORATES AREAS WHERETHE SERVICES ARE LACKING

7%

14%

65%

7%

7%

Excell

Very g

Good

Fair

Poor

Figure 4.4Figure representing the proportion the satisfaction level

Explanation

Above chart shows that 65% of the respondents said that the services of theconsultancies are good. A very negligible percentage of the respondents said that it is poor (7%).Similar is the case with fair (7%) and excellent (7%).14% of the

respondents said that the services are very good.

Outsourcing of employees is done mostly for non core functions .This means thoughthese functions are indirectly helping in increasing organizational efficiency but theyare not directly contributing to the KRAs of the organization. Also the works done arerepetitive in nature so skill up gradation is not that much a vital factor for these tempworkers. Hence constant vigilance for higher efficiency, up gradation and innovationare not required so much compared to that with the permanent counterparts. Thediagram depicts that very small portion (7%) of the respondents said that the servicesare excellent. And majority said the services to be good. This proves that though theyare satisfied with the regular operational tasks of the consultancies yet there are

certain areas where the services should be improved in order to reach optimalsatisfaction level.


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47%

43%

5% 5%

Timely recruitment Timely Salary disbursement

Poor ualit of candidates Effic ient statutor com liance

Figure 4.5Piechart showing the proportion of the respondents who are unsatisfied withthe services of the consultancies under different category

Explanation

Fig 4.5 depicts the areas where the services of the consultancies should be improved.From the above figure it is seen that 47% of the respondents said that services lackedefficiency in terms of timely recruitment and 43% timely salary disbursement .Only5% respondents said that they are dissatisfied each for poor quality of candidates andinefficient statutory compliance.

Timely recruitment and timely salary disbursement are the areas where the services ofthe consultancies should focus in order to increase the overall acceptability in the

industry. This will not only increase the efficiency but also increase the scope ofoutsourcing business.Corporates will rely more on its efficiency and mightoutsourcing other functions to the consultancies.Here comes the involvement of the HR professionals in carrying out the operationaltasks effectively.

CLIENTS POINT OF VIEW

Every person related to the HR department should understand how far a particularstaffing strategy will be feasible, keeping in mind the companies vision and objectiveinline with the position and responsibility for which a candidate is required. All thesefactors have to go in line with each other in addition to the companies strategic HR

policy.Strict demarcation has to be made before giving any requirement to theoutsourcing consultancies. Because based on this the candidate will be screened bythese agencies. A thorough study has to be made and the specific criterias along withthe nature of the job has to be pre stated by the HR department on the clientorganizations end.


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CONSULTANCYS POINT OF VIEW

As soon as the HR department gets the requisition for candidates for a particular job, the

very first thing that should be done is to analyze the nature of job,its responsibility and itsattrition rate (as it is a contractual job).After this candidates should be screened .Thereshould always be a back up pool of candidates in times of acute conditions so that theclients should not have a dearth of candidates.

###CATEGORIES OF EMPLOYEES OUTSOURCED

Upper

10% Middle

5%

Junior

25%Lower

60%

Figure 4.6 Piechart Showing outsourced Employee CategorizationExplanation

The piechart depicts that 60% of the companies outsource their employees working inlower level and performing repetitive tasks (peons, security ,data entry operator,accounts executive, sales executive, receptionist etc)It is quite astonishing to find that10% of the companies are Outsourcing employees belonging to upper level(CEO CFOetc.Though it is a very recent practice in India but many organization have their topmanagement professionals who are the decision makers of the company, on a temporarycontractual basis. About 25% of the companies outsource employees from juniorlevel(executive engineer ,HR executive etc).And a mere 5% companies outsource

employees from middle level .In wipro ,there are people from middle management levelwho are outsourced on a temp basis. Thus it can be stated that though mostly employeesworking in noncore activities are outsourced but some times outsourcing is seen as avaluable means to have an enriched pool of talent having professionals from differentfields without bearing long term legal hazards.


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###ROLE OF HR IN TEMP STAFFING

44%

30%

26%

O erational Le al Financial

Figure 4.7Diagrammatic representation of the role played byHR in temp staffing

Explanation

The above figure states that HR s most vital role is in operations (44%)followed by legaland then financial. Before planning its human resource an organization must understandthe need for which the candidate is required keeping in mind the companies long term

objectives. Corporate HR, Strategic HR and Operational HR should go hand in hand inorder to get optimum result from outsourcing.HR plays the most crucial role here muchmore than that of legal and financial.This is because depending upon the requirement and necessity the budget allocation of anorganization can very.And so, both legal obligations and the cost part are dependent onoperational decisions.


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### LEVEL OF SATISFACTION AMONG THE CORPORATES

0

2

4

6

8

10

12

14

Number of

respondents

YES NO

Satisfaction level from consultanc servicesFigure 4.8Diagrammatic representation of the number of respondents who are

satisfied with the services of the consultancies

Explanation

The above figure 4.8 illustrates that out of fourteen respondents ,thirteen respondentsreplied that they are satisfied with the services offered by the temp staffingconsultancies.Only one respondent is not.From this,it can be inferred that temp staffing isa rising phenomenon and is here to stay keeping in mind the stiff competition and

economic fluctuations.


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0

2

4

6

8

10

12

Number of

respondents

T&D

E/OProgram

s

E/MPro

grams E/

W PAR&

R OD E/E

R/P

andE

/Spro

grams

MDPs

Figure 4.10Diagram showing a comparative study of the different programs

undertaken by corporates

Explanation

The above figure depicts that there are quite a few advantages of outsourcing. Majority ofthe respondents are in favour of temp staffing and stated that it is because of outsourcingthese functions that they are able to focus more on upgradation of skill and knowledge ofthe direct employees through training and development. Thus it can sated that the cost

reduced as a result of outsourcing is quite effectively utilized in Upgradation Programsfor direct employees.This not only helps in increasing organizational efficiency but alsohelps enriching the resource pool and attracting newer talent. Other programs likeEmployee Orientation Programs, Motivational Programs, Employee Welfare,Performance Appraisal Rewards and Recognition, Organisational Development,Employee Engagement Programs ,Retention Plans and Employee Satisfaction Surveysand finally the MDPs.All these program help in increasing the overall efficiency of theorganization.


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###DISADVATAGES OF TEMP STAFFING

38%

14%14%

10%

14%

10%

Less productive than the permanent counterpart Employee replacement backup

Increase in the number of lawsuits Less Motivation towards the principle employer

Less bondage towards the principle employer High attrition rate

Figure 4.11Piechart showing a comparative analysis of the disadvantages of temp

staffing

Explanation

Fig 4.11 illustrates that 38% of the respondents feels that the temp employees are lessproductive than their permanent counterpart. This is because of lack of motivation ofthese temp workers towards their job This affects the organizational efficiencyconsiderably as every job has certain significance in its own. Other disadvantages areemployee replacement backup (14%), increase in the number of lawsuits (14%),less bondage towards the principle employer(14%),less motivation towards the principleemployer (10%)and finally high attrition(10%)

Due to lack off motivation and uncertainty the attrition rate is high for temp employees.As a result there is always a need for temp workers and the consultancies often fail toprovide replacement backup. Also, less motivation and bondage towards the principleemployer results in an increasing trend in the number of lawsuits, as the temp workersfeel that they are being underpaid than their permanent counterparts. They also feel thatthey are deprived of financial benefits and compensation compared to the permanentstaff.Ironically though organizations are benefited in the short run, but in the broader perspective this concept is creating a negative impact on the society. When anorganization is set up in an area ,it creates job opportunities for the people dwelling inthat area. More the income of an individual ,more will be the expenditure. This directly

contributes to the socio-economic development of the adjoining places surrounding theorganization. Similarly when an organization pays less to the temp workers, they hardlycontribute anything to the economic development of the place as their wage is bareminimum to meet up their needs. Thus on a macro level for developing countries likeIndia, increase in the number of temp workers is a tremendous threat to the economy as awhole.


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4.5 LimitationThough the report was made with utmost precision and accurate information, yet therewas certain limitations .These are

o Time Constraint

o Biased feedback

o Non response

o Hesitant to disclose confidential information

o Time Constraint

The project tenure was only of two months and so the time was not sufficient enough todo a full scale study on the temp staffing market. The sample size is only fourteen andthis is not sufficient to understand the temp business.

o Biased Feedback

As per the requirement of the report, I interviewed the HR managers and assistantmanagers, who due to their busy schedule could not devote enough time even with priorappointment. And so there was at times biased answers for some questions.

o Non response

The HR managers due to their busy schedule did not answer some of the descriptive openended questions due to lack sufficient time.

o Hesitant to disclose confidential information

Informations regarding temp staffing business are informations related to the HR policyand strategy of the company. And so many HR managers were hesitant to close the exactinformations.Due to this there can be some biases in the report.


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5. OTHER PROJECTS

MY DAYS IN GENIUS CONSULTANTS LTD

As partial fulfillment of the course of PGDM it was necessary on our part to undergo aSummer Internship Program in a company. In an attempt to do so I was interviewed andselected for undergoing a project on one of Indias leading consultancies named GeniusConsultants ltd.The experience over there was beyond explanation .Though I was given aparticular topic to work on ,my guide Mr.Y.P. Singh-President National OperationsOutsourcing gave me ample scope and opportunity to learn about thetemp staffing

Documents

HR SUMMER PROJECT FINAL