The unstoppable wave of contingent workers has reached the shores of Asia.
According to Staffing Industry Analysts (SIA), in 2016, the population of contingent workers in Japan was close to two million. In terms of numbers, India pales in comparison. Though a whopping 450+ million people make up India’s labour force, less than a million of them account for its contingent workforce.
Many temporary jobs in India are administrative jobs and align more closely with entry-level positions. This situation stems from certain factors, which include a lack of social recognition for non-standard employment, cultural hostility towards non-regular work and the thinking that a job is for life. In addition, employment laws in India are somewhat outdated, making it harder for organisations to fully embrace this growing trend.
The country is however not entirely outclassed in the numbers game.
In 2017-18, India’s temporary flexi-staffing market is set to post a double-digit (12%) growth compared to Japan’s 6%. According to Indian Staffing Federation (ISF), by 2025, the flexi-staffing industry is likely to account for more than 10% of India’s formal-sector workforce.
Now, how does India’s contingent workforce compare with more mature contingent markets such as Japan and Singapore?
The MNC factor
In Japan, the growth of its contingent labour force is driven considerably by Multinational Corporations (MNCs), which lay great store by having a contingent workforce. In addition, technology in Japan has made the process of managing a contingent workforce easier. Many organisations have adopted a Managed Services Program (MSP) model for management of temporary or dispatch workers, as they are known in Japan. MSP service providers support the end-to-end management of the procure-to-pay process for contingent labour. An MSP can proactively manage some of the most common legislative and compliance risks.
Work regulations
Singapore’s contingent worker market is on a steady growth. Singapore has less than 1% of India’s labour force (450+ million) and when it comes to the contingent workforce, the number may look relatively insignificant. Yet, in the area of contingent labour, Singapore has made rapid strides, largely aided by flexible employment regulations.
The road ahead
What should India do to make use of this labour trend? The Indian workforce should begin to see contingent employment as a gateway to opportunities. Temporary positions can serve as an entry point to full-time and more traditional employment.
Organisations that are working towards adoption of this trend should seek to educate policy makers and business regulators about the significance of having a contingent workforce.
Ultimately, adoption of an MSP model to manage the temporary workforce can reduce some of the complexities currently associated with the Indian market.
More importantly, organisations have to acknowledge that the world of work is changing and that the line between permanent and contingent workers is blurring.
( Rishi Kapoor is Managing Director — APAC at Pontoon Solutions. )
