Running
out of time? Then imagine what it's like being Sanjeev Srivastava.
An MBA from a famous B-school, he didn't think he'd be on a summer
job so long after summer (and graduation). Yet, that's what his
job is-a temporary one. "I'm making the best of the situation,"
he shrugs. As a 'temp', he gets paid nothing like an MBA ought to,
but in these scroungy times, a job with an expiry date sure beats
being jobless.
That's what he'd have been if it weren't for
a staffing services company which placed him at the internet division
of Hughes Software Systems (HSS)-which employs only as many people
as the moment's workload requires, rather than get saddled with
a fat salary bill that can't be sustained if business slumps. "Temps
fill up short-term needs in non-core business areas at short notice,"
says Aadesh Goyal, Vice President (HR), HSS, flatly.
The broad reasoning: if efficiency is the route
to profit maximisation, then costs are best kept variable, dependent
on output, to the extent possible. It's a good way to "address
fluctuations in business cycles", in the words of D. Rajiv
Krishnan, gm (Staffing Solutions), Ma Foi, an hr outsourcing firm.
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THE TEMPING LOWDOWN |
»
Flexible salary bill
» No long-term
burden
» Quick adaptation
» Young willing
temps
» Lack of
commitment
» Loss of
confidentiality
» Low work
passion
» No intellectual
leverage |
The Work
Flexibility. That's the wonder word for just-in-time
staffing (or 'temping'), an idea that has recently made its debut
in India. This, don't forget, is a largely conservative country
that still sees a job as something of a lifelong commitment. Can
temping work in India?
Silly question. Temping is working already.
Ask 24-year-old Keerti Mitra. "I love working as a temp,"
she says in all earnestness. Why? She is glad to have gained three-and-a-half
years of experience with McKinsey, where she worked as the personal
assistant to the head of knowledge centre. Now, thanks to a temping
service agency, she's working with an infotech multinational. The
goal, from her perspective, is to get a paycheck in hand, not vague
promises of a career path and permanent security.
India already has some 100,000 temps at work,
with the figure rising 50 per cent annually, by the estimates of
Ajit Isaac, CEO, PeopleOne Consulting, a staffing services firm.
Ford India, Titan Industries, RPG Group and United Healthcare's
Indian entity Aspire Global are just some of the companies that
are willing to go public with their temping policies. It's a market
phenomenon, after all, and nothing to be ashamed of. "Entrepreneurs
and organisations would like to retain flexibility in operation
as much as they can," says Isaac, "especially in the light
of recent developments, where demand-supply equations for products
and services can be significantly altered in 30-60 days."
Kelly Services and Manpower, global firms both,
have also set up shop in India, expecting the market to follow the
US, where some 4 per cent of the entire workforce is estimated to
be temporary. "It works abroad," says Poornima Das, Managing
Director, Kelly Services, "since a 65-year-old lady can temp
as a librarian, for instance, and still not raise eyebrows."
By contrast, the industry here remains shadowy and unstructured.
"But," says Isaac, "this is bound to see some consolidation."
Once that happens and temp service firms grow big, corporates will
start adopting the idea like nobody's business. Or so goes the hope.
Project-driven industries, such as it software
and construction, are early adopters of the idea. Some of them are
using temps even at somewhat higher levels. Recently, an it company
in Hyderabad engaged a staffing services company to hire a senior
Oracle specialist for three weeks for an urgent special project.
It hired a temp who billed Rs 700 per hour, but got the job done
on time.
A flexible salary bill is not the only advantage.
It works out cheaper on the whole, too, for the same reason outsourced
non-core resources are cheaper. Temps don't draw any of the gratuity,
pension, and other benefits that burden companies.
Other than that, temping helps companies get
around some of India's outdated labour regulations that torment
companies needlessly. According to the Industrial Disputes Act of
1947, if a company has more than 100 permanent employees, then it
has to take prior consent from the government before it can retrench
anyone. Best, then, to remain a small firm. This, however, is a
quirk of regulation rather than a true market incentive. Temp firms
would rather not have it billed as a factor in the tempting phenomenon.
In fact, the Act may even have muddied the modern idea of temping,
since so many Indian firms have been hiring on-paper temps all these
years anyway.
The Sacrifice
To employees, the good news is that temporary
jobs tend to be relatively flexi-time. In the US, opinion polls
show that most temps want permanency, but a significant fraction
see temporary jobs as a good way to sell their skills (a market
transaction), while committing their minds and hearts to personal
interests, which they refuse to sacrifice to the company.
Of course that spells lack of commitment, and
this is also the biggest criticism of temping from the corporate
perspective. As an employer, you sacrifice confidentiality and morale-for
the sake of savings. Don't expect your just-in-time employees to
guard secrets or go that extra mile in the firm's larger interests.
If temps perform fringe roles, it shouldn't matter. But some companies
believe that nothing is too fringe, and that everyone is part of
a corporate culture that must be unique if it is to be differentiated
in its thinking, which, in turn, helps differentiate products and
services in the market.
Besides, what's the point of a workforce that
cannot be leveraged as an intellectual asset? That, though, is a
matter of perspective. Today, innumerable jobs are 'commodity' jobs.
Often, the firm simply needs an army of data-entry operators, say,
to execute a one-off project. That's where temping can make the
difference.
The Test
All very well. But will temping endure as an
idea? Or is it a product of the downturn? Assume for a moment that
the economy is booming, and talent is in short-supply. Would valuable
workers still be temps of their own free will? That's the ultimate
test.
Well, you'd be surprised how fast Indian youth
attitudes are converging with American. Many temps, far from feeling
exploited, are happy being temps. There are no opinion polls on
the subject here, but that's not the real issue. Talk to Pooja Gupta,
who works flexi-time for the administration department of an IT
company. "I get a little bit of a salary hike each time I walk
into a new office for a new assignment," she beams, relieved
not to be a prisoner of the office clock. Her job lets her set her
priorities the way she likes. What is she sacrificing? Job security.
But certainly not her life, liberty or pursuit of happiness-the
real issue.
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