Contract staff helps cut manpower costs by 20%

Dubai: Hiring workers on a temporary basis helps companies save up to 15 to 20 per cent in manpower costs, according to contract staffing company Tasc.

“[This is] because the contractors are employed by a third party and the overall cost of ownership is reduced. Contract staffing firms in turn manage the legally mandated costs assigned to the employee, including medical insurance, gratuity and paid sick or vacation days,” said Mahesh Shahdadpuri, executive director of Tasc.

S. Balakumar, managing director at Dulsco, said by hiring temporary employees, companies are also able to focus on their core business, optimize payroll administration cost and save on human resource administration expenses.

“The available payroll headcount can be utilised for core roles. [Companies will have the] option of choosing the right talent and making necessary course corrections with quick replacements. [They will also] get trained staff so the learning curve is reduced and productivity is increased,” Balakumar pointed out.