Contract Staffing

A diffuse term in general use which usually implies a "co-employment" relationship where a labor contractor supplies staff to a third party for a specific function and time period, at a specified hourly rate.

What is Contract Staffing/Temping?

Contract staffing is when employees are hired to perform specific functions in a contractual relationship for a client company and for a defined period of time. Contract employees are hired based on the specific needs of the client company. Other common names for this are Temporary employees, Temps, Temp to Perm and Short-term employees. 90% of U.S. companies use Temporary help services!

Why contract staffing/Temping?

  • Reduction in overall costs and headcount without compromising quality
  • Elimination of management burden, thereby allowing staff to focus on core goals
  • Elimination of recruitment, benefits and performance measurement burdens without loss of control
  • Hiring activity channeled through a supplier with whom the client has a formal service level agreement.
  • Centralized visibility of the costs of hiring contractors and thereby allowing a greater degree of control.
  • Single point of contact and consolidated invoicing.

What Are the Benefits of Contract Staffing/Temping?

  • Eliminate payroll accounting
  • Eliminate payroll tax issues
  • Reduce benefit administration
  • Reduce unemployment exposure
  • Reduce workers compensation exposure
  • Maintain budget controls

Contract Search Process

  • Preliminary review of the business & industry
  • Identification and evaluation of the employment need
  • Extensive market research to identify available talent
  • Prospect screening
  • Candidate evaluation
  • Candidate testing
  • Presentation of the top candidates
  • Reference and background checking
  • Interview coordination
  • Offer and acceptance
  • Follow-up with contract employee and hiring manager

In what disciplines can we utilize Contract Staffing/Temping?

  • Information Technology
  • Engineering and Manufacturing
  • Accounting and Financial Services
  • Office Clerical / Administration
  • Customer Service
  • Sales and Marketing
When should you Use Contract Staffing/Temping?

An employee takes a leave of absence. An employee resigns and you don't have someone ready to step up. Your budget may not accommodate a full time employee but you can hire someone on a project basis. You have a new product introduction and need short term help. Again, if you have work that needs to be done, you should look to contract it out.

Fees and Guarantee for Contract Staffing

Replacement at no cost if the placed candidate resigns or is terminated for cause any time during the first three months of employment. If the candidate resigns or is terminated for cause after three months of employment, a prorated amount will be credited towards the replacement fee. Guarantees are voided if employment is terminated due to layoff, reduction in work force, change in corporate ownership, or if pre-employment agreements and/or conditions relative to salary, location of employment or job content are not honored.
Fee: 30%-40% of first year annual compensation.

The JHSoftech Temping Model:

Temping for us is a co-employment relationship between a Client company, employee and us. This relationship is better explained with the help of the diagrammatic representation of the set theory; the Venn diagram.

  • 1. JHSoftech and the Client sign a service level agreement (Region 1) in the Venn diagram.
  • 2. The Employee and JHSoftech have an employment relationship (Region 2) in the Venn diagram.
  • 3. The Employee provides services to the Client (Region 4) in the Venn diagram.

The relationship between the Client and JHSoftech is captured in a Client Service Agreement (CSA). The CSA establishes a three party relationship whereby JHSoftech acts as the employer of the temporary employee who works at the clients premises. Under the CSA JHSoftech assumes responsibility for the personnel administration and compliance for most employment related government regulations, while the client retains the employees services in its business and remains the employer for various other purposes.