contract staffing is a common practice where organizations hire contract employees for a specific period to work on projects or to fill temporary positions. These contract employees work under the payroll of a third-party staffing agency that manages their recruitment, onboarding, payroll, and benefits administration.
Typically, the staffing agency recruits and employs the contract employees and assigns them to work with their client organizations. The client organization pays the staffing agency for the services rendered by the contract employees, and the agency in turn pays the contract employees their salary and benefits.
Contract staffing is beneficial for IT organizations as it provides them with flexibility in hiring and staffing for short-term projects. It also helps them reduce their HR and administrative costs, as these are managed by the staffing agency.
