‘We will make it dignified to work under contract’

The $5.5-billion global recruitment company Kelly Services has carved a niche in markets like the US and Europe, by providing recruitment solutions for Information Technology, financial services, pharma, consumer and engineering sectors with employees hired on temporary basis – also known as flexi or contract staffing.

However, in India, its focus is more in permanent staffing due to the stigma attached to being on contract for employees, says A Kamal Karanth, Managing Director of Kelly Services & KellyOCG India.

Through its Recruitment Process Outsourcing and Managed Services Provider solutions, Kelly in India annually provides employment to over 15,000 people.

“We will change the stigma. Five years ago, top staffing companies came together to form the Indian Staffing Federation with a key objective to ensure that we take the stigma out. It is a step-by-step process,” he told BusinessLine in an interview. Excerpts:

Why is there a stigma in contract staffing?

People prefer being in permanent jobs. It is more of a societal pressure.

If you go home and say I am in a ‘contract job’, nobody will like it. There is nothing like having a permanent job, including mine.

When employers say it is time to go, we all have to go.

Can industry remove this stigma?

Absolutely; we will by making it a lot more dignified to work in contract.

The stigma attached to flexi jobs is that it does not have any benefit coming with it. In the past, it was exploited.

People were given a lump sum amount without any social security, insurance or provident fund. We need to create more awareness and credibility to industry.

Nearly 15 years ago, the recruitment sector was a $150-million industry.

Today, it is worth $6 billion and is growing at 20 per cent. This growth will enable more hygienic practices to come in. More branded companies will make it more conducive for people to say it is ‘ok to be on contract’.

How have things changed in the last five years?

Large recruitment companies ensure there is respect and dignity. We provide offer letters, bank accounts, salaries paid on time, insurance and Provident Fund. Many multinationals are entering India and are first trying to recruit people on contract, and then based on their performance making them permanent. This model takes away stigma.

How about regulation for flexi staffing?

Labour is a sensitive topic in every country, not just India, where nearly 12 million come to the workforce every year. We constantly engage with relevant ministries and talks with them have been encouraging. We see, step-by-step things taking shape. We are possibly the only industry seeking a regulation for a while.

Why is regulation required?

Through regulation, there will be more respectability to industry and far more jobs will become dignifiedly organised. The pie of business has grown and regulation will speed up. We have a responsive government and it is matter of time before labour reforms get more progressive.

What sort of regulation are we looking at?

Let there be a kind of system where certain criteria is laid out for agency work to be carried out. We are asking the government to bring in guidelines that people need to follow to get licences to operate.

Which are the sectors that use flexi staff?

First, it was FMCG, telecom, and BFSI to a limited extend. Off late, it is e-commerce, as the last point of delivery is done by flexi staff. IT industry understood flexi staffing and for skills like testing and technical support, there are flexi employees who are mostly first-time job seekers, students, returning to work and retired people.

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