Differences between Contract Staffing and Labor Dispatching

Let’s begin with clear definitions of Contract Staffing and Labour Dispatching services. Though both relate to recruitment activities, usually undertaken by a staffing solutions agency, they differ much in nature.

Contract Staffing is when a staffing outsourcing services company hires a team of employees for a particular enterprise, for a fixed period of time. As the name suggests, the terms are contractual in nature. Plus, the labour contract for contract staff positions is between the contract staffing company and the candidate.

Labour dispatching, on the other hand, has a time frame of, at least, two years and labour staff is considered as third party staff. The contract for labour dispatching is:

• On a replacement, temporary or functional basis
• Between the candidate and the company for which he or she is hired.

More ways in which Contract Staffing and Labour Dispatching differ

• Responsibility areas: In contract staffing, the staffing agency has complete authority in the scouting, interviewing, hiring and agreement processes. In labour dispatching, the recruitment functions are shared between the staffing agency and corporate entity for whom labour is being deployed
• Manpower terms: If your requirement is for a larger number of employees, a contract staffing arrangement is more suitable. There is no limit placed on the quantity of contract staff that you may hire. But if the need is for a fixed number of labour staff, labour dispatching is recommended, but there is a limit on dispatched labour at 10% of total manpower of the hiring firm.
• Adjustment rules: Contract staffing allows the employer to adjust staff levels at any time, while staff levels for labour dispatching can only be adjusted in batches at a time.

Advantages of Contract Staffing

Contract staffing gives you the freedom to hire, even on small budgets. It satisfies short-term or temporary employment needs and ensures that projects are not halted half-way due to lack of manpower. There is also the flexibility to convert contract staff to permanent staff after a period of excellent performance.

Why choose Talent Spot

If your company requires short term contract staffing or two or more year labor dispatching, outsource your recruitment services to us. Talent Spot will ensure a cost effective solution that reduces business risks and is in compliance with the latest HR policies, payroll and employment administration.

To know more about our contract staffing and labor dispatching services, contact us today!