Welcome Guest

Home Article Managing A Business HR  Skilled employees at controlled cost

Skilled employees at controlled cost

Unlike earlier years, this time the demand is especially high for candidates with specialist skills to offer and who can come on-board quickly to start delivering on the huge pipeline of pending projects and meet the targets.

BY Entrepreneur  |  Jun 02, 2011 comments ( 0 ) |

Post economic slowdown, there is a rise in employment opportunities across various verticals and the employment outlook is expected to be good. However, unlike earlier years, this time the demand is especially high for candidates with specialist skills to offer and who can come on-board quickly to start delivering on the huge pipeline of pending projects and meet the targets. “By looking for experienced candidates, who can be productive faster, will help companies save significant costs on the training and grooming the raw manpower and kick-start early generation of revenues and at times, to save on the opportunity cost altogether,” says Mr. Chetan Indap, Founder & CEO, StaffonContract.com


Employable professionals

In fact, the National Skills Development Commission (NSDC) indicates that against a total skilled manpower demand of 83 Million by 2015, the current training capacity is 3 Million. As per FICCI, skill shortage exists across many segments of the industry and economy of the country. So while, we have reached an inflection point where not only the technically qualified professionals in various streams are in short supply but those who are available are at unreasonably high costs and with no guarantee of coming on board. Dilip Chenoy, MD & CEO, NSDC, enumerates the need saying that, “There is shortage of capacity building institutes/training centers. This is giving rise to a gap in demand and supply of skilled and trained manpower. The professionals are educated, but not specifically employable.”


Cutting down the employment cost

 Ironically, while most companies see high economic growth rates, companies want to adopt more cautious approach to increasing their fixed-employee costs. Sunil Gutte, JMD, Sunil Hitech, initially started a training module for his employees. “We trained them, with specific industry related engineering skills that are not taught in colleges. This prepared them to face the field. But we soon realized that this was a common industry worry, also the cost of training a small lot was much higher. So we now have opened the institute for other students, we charge fees for the training, which the students are willing to pay, as the certification will give them better standing in the job markets.” Also NSDC is coming up with various industry specific modules, which are aimed to take the burden off the industry, and use their experience and expertise to train and maintain future manpower without spending an exorbitant amount.


Employee as a Service (EaaS)

Another solution that comes from the StaffonContract.com team is treating employees as service, and outsourcing them, or sharing them on hourly basis. This is a solution to the combined problem of skilled hiring with lesser risks of fixed costs, is giving birth to a new mind-set of Employee as a Service (EaaS) model, akin to the cloud computing, where companies can get skilled professionals on contract basis and pay only on need basis.


“Through contacting, a common talent pool is available to all; there is no fear of recession, price inflation, which the smaller companies are more susceptible to and moreover this creates a secure base for the employees also, and with security of work, they can invest more time and resources in self training and building their knowledge and skill acumen,” explains Sameer Sikka, Director, Xntuate Human Capital Solutions.


Living by the example

One of the sectors that lead the rest of the industries on contract staffing is the IT sector. As per industry estimates, in the IT space, contract staffing is up by as much as 19 per cent in 2010. It is the quality and ease of availability of manpower that is helping the growth of contract staffing in this sector.


“IT Exports is slated to touch $175 billion by 2020. The sector is projected to add over 1.8 million jobs this year alone and about 10 million by 2020. At current state, the contracting is only about 5% of the total IT Full Time Employees (FTEs). This year we are seeing Contract staffing grow to over 15%. Given this growth rate, by 2020, contracting will account for 35% of the 10 Million FTEs,” spoke Chetan Indap, who seemed confident that this trend will surely take on the IT industry and the allied sectors in the SME segment.




Please add your comment

Not readable? Change text. Enter the characters as seen on the image (case insensitive)
  Notify me of follow up comments via e-mail   Subscribe for daily newsletter

Related Articles

Perk up Your Team

BY Entrepreneur

Small business or big business, there is no greater resource than a motivated team. However most entrepreneurs fail to realize that this does not happ...

The Art of Delegating

BY Entrepreneur

For an entrepreneur, his business is no less than his baby deserving possessiveness and emotional attachment. Quite often you assume that no one knows...

Hold On To Your Key People

BY Entrepreneur

As far as a small business is concerned, a handful of key senior professionals form the body of the organization. This core team is responsible for le...

Do not hire in a jiffy!

BY Entrepreneur

Hiring dedicated people is one of the biggest challenges that most start-ups face. Smaller pay packages offered by your start up as it cannot afford t...

Encourage creativity as an entrepreneur!

BY Entrepreneur

Creative thinking is what will help you and your team come up with innovative ideas that will enable your company to stand out in the market and give ...

Qualities to look for in your marketing

BY Entrepreneur

For Entrepreneurs like you who have just started your business or are running the business for quite some time, it is imperative that the key person m...

Deadlines must be met!

BY Entrepreneur

    As your business grows, delegation of duty becomes an important part of your work profile. Not all jobs can be handled by you single-h...

Hunt the Right Heads

BY Entrepreneur

Finding the right talent is one of the biggest challenges faced by startups. In fact it is more about building the core team which would drive the bus...

Importance of Informal group

BY Entrepreneur

It is not always the people who are positioned at the helm of affairs that play a pivotal role in establishing an organisation. But sometimes, there a...

What to do when team members fight?

BY Entrepreneur

It’s not unusual when two people working in the same team tend to have differences. But being the entrepreneur and thus the team lead, what shou...

Keep your employees motivated!

BY Entrepreneur

It wouldn’t be an exaggeration to say – behind the success of every company there is a group of motivated employees. It’s the team w...

Change the way you work

BY Entrepreneur

Do you sometimes wonder that despite doing everything right for your business for a few years now, you have not managed to do as well as you had antic...