A PROJECT REPORT

ON
HUMAN RESOURCE MANAGEMENT

By

NAME:APARUPA BHATTACHARYA
COURSE:PGDM
SEC-A
ENROLLMENT NO:010106091
 PREFACE

The following project was undertaken at GENIUS CONSULTANTS LTD., kolkata, in

pursuance of the Summer Internship Project forming a part of the curriculum for the
PGDM at GBS, kolkata. Summer Project is a pedagogic approach that gives the PGDM
participants an opportunity to apply their managerial skills and classroom learning in real
life projects in an industry.
Projects requires a participant to work with corporates to understand a problem or
situation, collect information, identify critical issues ,to find out reasons of a particular
trend of action, develop alternatives for addressing the trend ,prepare a plan of action,
suggest a set of recommendations, report generation and presentation to company
management and college faculty.
This report covers in details about how HR plays a vital role in the temp staffing business
and how HR can intervene in increasing the efficiency of the temp staffing business as a
whole. Added to this the report also covers the details of the processes being carried out
under Outsourcing at GENIUS CONSULTANTS LTD.
After analyzing the future scope and trend of temp staffing among the corporates, the
report suggests recommendations for future course of actions.
 ACKNOWLEDGEMENT

I would like to express my sincere thanks to all the concerned people who have directly
or indirectly extended their hands towards completion of this project. The project would
not have been possible without the constant and timely encouragement from all
concerned.
Firstly, I would like to convey my sincere thanks to Prof.Debaprasad Chattopadhaya
(Head Of the Department –HR) and Prof. Meenakshi Khemka (Faculty Of Human
Resources) for their constant guidance and mentoring throughout my project.
This work could never have been completed without Mr. Y.P.Singh, President -National
Operations Outsourcing, Genius Consultants Ltd.who not only provided me with this
excellent opportunity of working with such a challenging and upcoming topic but also
guided and supported me with his valuable insights. I take the opportunity to thank Ms
Rashmi Yadav, Director ,Genius Consultants Ltd.for providing me the opportunity to
have a practical exposure with the corporates practicing temp staffing. Her constant
guidance and mentoring helped me to focus on my work all the time.

Last but certainly not the least many thanks to all the valued employees in all the
departments with whom I interacted during the tenure of my project. I sincerely thank
them for providing me with valuable inputs through conversations and feedback during
the course of my project. Their support has been invaluable for me without which it
would have been difficult to come out with this document.
 DECLARATION

I do hereby declare that the project entitled “Role of HR in Temp Staffing” is

submitted as part of my Summer Internship Project forming a part of the curriculum for
the Post Graduate Diploma in Management Program at Globsyn Business School,
Kolkata.
The project has been done under the guidance of Mr.Y.P. Singh, President -National
Operations Outsourcing, Genius Consultants Ltd.This project has not been submitted in
full elsewhere for any reward or any degree.

Aparupa Bhattacharya
Enrollment No: 010106091
Batch-2007-09
Globsyn Business School, Kolkata
TABLE OF CONTENTS
SL NO TOPIC PAGE NOS
1. Introduction
1.1 Company Profile 1
1.2 Genius Company History 1
1.3 Genius Operations 2
1.4 Competitors of Genius 3
1.5 Genius’s Commitments 5
1.6 Certifications and Press News 10-13
1.7 Objective of the Report 13
2. Review
2.1 Scope 14
2.2 Present Scenario of Temp Staffing 14
2.2.1 The Positions 14-15
2.2.2 Types of Services Offered 15
2.2.3 Benefits of the Organization 15
2.2.4 The Temps 16
2.2.5 Different from Body Shopping 16
2.2.6 The Future 16
3. Design 18
4. Analysis And Interpretation Of Data
4.1 Temp Staffing 19-21
4.2 Role of HR on Temp Staffing 21-22
4.2.1 What is Alternative Staffing 22
4.2.2 Operational Considerations 22-23
4.2.3 Financial Considerations 23-24
4.2.4 Legal Considerations 24-25
4.2.5 The Final Contract 25-26
4.3 Types of Temp Staffing 26-27
4.4 Sample Survey Questionnaire 27-37
Analysis
4.5 Limitations 38
5. Other Projects 39
6. Summary and Conclusions 40-42
6.1 Recommendations 40-42
6.2 Learnings 43
7. Reference Section
7.1 Bibliography 45
7.2 Abbreviations 46
8. Annexure 47
8.1 Sample Survey Questionnaire 48-52
8.2 Project Activity Log 53-54
 LISTS OF CHARTS AND DIAGRAMS
Sl CHARTS AND DIAGRAMS PAGE
No No
1.1 Map showing the places where Genius has its branches 2
1.2 Piechart Showing Competitors of Genius 3
1.3 Organizational Chart 4
1.4 Organizational Chart showing Divisional Communication 6
Flow (PSS)
1.5 Organizational Chart showing Divisional Communication 7
Flow(TSS)
4.1 Diagrammatic Representation of the three entities of temp 20
staffing
4.2 Diagram showing the comparative analysis of the reasons 28
of temp staffing
4.3 Diagram showing the proportion of the number of years of 29
acceptance
4.4 Figure representing the proportion the satisfaction level 30
4.5 Piechart showing the proportion of the respondents who 31
are unsatisfied with the services of the consultancies under
different category
4.6 Piechart Showing outsourced Employee Categorization 32
4.7 Diagrammatic representation of the role played byHR in 33
temp staffing
4.8 Diagrammatic representation of the number of respondents 34
who are satisfied with the services of the consultancies
4.9 Piechart showing the proportion of advantages derived 35
from outsourcing
4.10 Diagram showing a comparative study of the different 36
programs undertaken by corporates
4.11 Piechart showing a comparative analysis of the 37
disadvantages of temp staffing
6.1 Piechart showing the relative proportion of the future 42
scope of temp staffing
 EXECUTIVE SUMMARY

As a management student I was required to undergo a Summer Internship Program in a

company to have a hands on experience about the corporate world. As an aspirant Human
Resource Management Graduate ,I undertook a training program in one of India’s leading
Consultancies having a pan Indian presence called Genius Consultants Ltd.The project
duration was of two months and the title of the project was Role Of HR In Temp
Staffing. Though there was a distinct topic on which I was required to work upon but the
exposure provided me with a huge opportunity to learn everything from recruitment to
handling operations ,key accounts to finally disburse the salary to the associates.
My entire project was designed into three parts-focusing on genius’s operations, doing
a literature study of temp staffing business and finally preparing a questionnaire and
visiting the big corporate houses and meeting the HR managers and gathering
feedback about temp staffing. It was indeed a very learning experience to have a real
interaction with so many corporates.

In the first few weeks ,I scrupulously studied about the vibes of temp staffing business
and activites done .After this exercise I was able to pick out the KRA’s of the outsourcing
business.This further helped me to find out the loopholes of the HR in the temp staffing
business.Along with this I was also asked to do certain literature study and then finally
prepare a questionnaire for the HR people who outsource their temp staffing to a third
party consultancies . My sample strength was fourteen (14).I visited them personally and
gathered information ang took feedback.My entire exercise then centred around the
reasons behind temp staffing,scope of HR in temp staffing ,the advantages and
disadvantages of temp staffing and finally the future prospect of temp staffing .The study
also aimed in finding out how the efficiency of the temp staffing business can be
increased and to what extent and in what way,HR plays a vital role in the entire process.
The study was qualitative in nature and needed a detailed research on temp staffing and
its activities.

After all the informations were gathered, the data was tabulated with the help of several
piecharts and bar diagrams. Finally the recommendations were made and conclusions
were drawn. Finally a report on word format was prepared .Three copies were made-one
for the company, another for my college and finally the third for my own reference.
 GENIUS CONSULTANTS LIMITED

ITS MISSION

Genius Consultants Ltd is one of India’s leading Consultancy having a blend of strong
Ethical Value with Professional Expertee .Its mission statement can be penned as
……………..
• To provide innovative, professional and personalized services to candidates,
associates and clients
• To establish Business Associates of Genius at all major business centers in India
with a mission to develop and penetrate market effectively by providing value
added and personalized services to out esteemed clients all over India.
• To Practice quality improvement process and achieve significant improvement in
business results
• To develop effective strategy in order to Service our existing National Clients and
develop more esteemed Clients having presence at the National level.

ITS VISION
Its vision for the new Millenium is”what we dream alone is a dream,but what we
dream together is a reality.”

• Grow global by 2010

• Strengthen the spirit and create pride in the company policies and its mission .
• All India online processing of business activities with individual login for
clients and associates
• Establish our Company amongst the largest national players in all aspects of our
core competency
1. INTRODUCTION

1.1 COMPANY PROFILE

GENIUS CONSULTANTS LTD.popularly known as GCL was established on the 27th

July 1993 by an entrepreneur of great vision , Mr R.P. Yadav with an objective of
providing Consultancy Services to the Corporate world.In a span of fourteen years,
Genius diversified into Outsourcing of Manpower, Payroll, Employment Verification,
HR Consulting .

Over these fourteen years Genius has become a pioneer and one of the leaders in the area
of Executive Search and Selection in India.Genius has achieved fourteen thousand
(14,000)Direct Placements at Client Payroll from the position of manager to CEO
level,more than thirteen thousand(13,000) outsourced personnel in Senior,Middle and
Junior Corporate level,satisfying more than fifteen hundred(1500) clients of National and
Multinational reputes.Genius has become a leader in providing innovative,professional
and personalized services to candidates and clients through Total Staffing Solution to the
corporate world.Genius has a strong team of two fifty (250) employees on the
payroll.Genius started its business operations in Manpower Placements at Client
Payroll.Subsequently Genius diversified its operations into Quality
Consultancy(QCD)since june 1998,with an objective to provide Consultancy for
implementation of ISO 9001.ISO 14401,OSHAS 18000,QS9000,TS 16949,HACCP and
various other Standards relating to Environment ,Safety and Health and Quality.Genius
has carried out Certifications of ISO 9000/14000/QS9000 for seven hundred (700)
small,medium and large scale organization

Genius Outsourcing Division also know as Temporary Staffing Solutions was launched
in November 2000.Genius Outsourcing Division deals with Manpower Outsourcing,
Payroll Processing Services and Background Verification Services. More than Hundred
and five (105) companies have received HR/Industrial Engineering /Restructuring
Consultancies from Genius

GENIUS ….A PAN INDIAN PRESENCE…..

Being recognized as a leader in Eastern India, Genius expanded its services to almost all
the cities in India.It has presence in almost all the major Metros and Cities –
Kolkata,Mumbai,Delhi,Chennai,Bangalore,Hyderabad, ,Pune, Ahmedabad, Lucknow
Chandigarh, Coimbatore, Vizag, Bhubaneshwar, Guwahati and Patna with a srong team
team of 300 direct employees and 12,700 associates servicing 1,125 clients all over India
and abroad.

1.2 GENIUS COMPANY HISTORY………….

Branches opened so far…………………….

1st February, 1998 1st Branch opened at Chennai

1st March, 2000 2nd Branch opened at New Delhi
1st July, 2002 3rd Branch opened at Mumbai
1st September, 2003 4th Branch opened at Bangalore
2nd February, 2004 5th Branch opened at Hyderabad
1st April, 2006 6th Branch opened at Pune

Franchisees opened so far…………………………

Genius also has nine franchisees spread all over India namely-
Ahmedabad,Lucknow,Chandigarh,Visag,Bhubaneshwar,Patna,Guwahati, Kolkata
(Saltlake) and Coimbatore.

1.3 .GENIUS OPERATIONS………….

Figure 1.1Map showing the places where Genius has its

branches
1.4 COMPETITORS OF GENIUS

7% 3%
10%

17%

20%

7%

3%
7%

26%
Adecco Mafoi Teamlease
Genius Consultants Kelly Services First Choice
Manpower Security Agencies Outsourcing agencies

Figure 1.2Piechart showing the market share of the different consultancies and
other agencies
 TOP MANAGEMENT ORGANISATION CHART

MANAGING
DIRECTOR

LOCATION NATIONAL HR/ADMIN

ACCOUNTS SYSTEMS /LEGAL
HEAD HEAD AND COMM.

PPS

TSS

BD/BVS

Figure1.3Organisational Chart of Genius Consultants Ltd

1.5 GENIUS’S COMMITMENTS

Genius Consultants ltd is committed to provide Total Staffing Solutions to the esteemed
clients in terms of PERMANENT STAFFING SOLUTIONS (PSS), TEMPORARY
STAFFING SOLUTION (TSS), PAYROLL PROCESSING SERVICES (PPS),
BACKGROUND VERIFICATION SERVICES (BVS) and HR CONSULTING.

I. PERMANENT STAFFING SOLUTIONS

This department consists of three types of Recruitment Solutions and they are-
a)Executive Placement through databank
b)Advertised Selection
c)Bulk Recruitment Projects

EXECUTIVE RECRUITMENT

The Executive Search service otherwise known as Manpower Recruitment Division

(MRD) offers 3 types of executive search solutions.
The Service primarily addresses recruitment of middle, senior & top level management
staff. Genius also has an online databank of 5.6 lakh candidates through its own job
portal.(www.geniusconsultant.com)

Genius’s own online database allows speedy matching of profiles for recruitments and
quick response time to client's requirements. Genius has got their own specialized
software, personal interview and test to match the client’s criteria with the candidate’s
expectation.

ADVERTISED SELECTION

Genius finds candidates through Head hunting from target industry and company for right
candidate of employee. Networking is also another valuable means to find out right kind
of candidates for right kind of job. The services rendered by Genius include
conceptualization and drafting of recruitment advertisement, selection of appropriate
media, release of advertisement, receipt and screening of resume, preliminary interview,
selection test, psychometric test, reference check etc.

EXECUTIVE SEARCH AND SELECTION THROUGH BULK RECRUITMENT

The Service is well suited for start-ups, new project manning, plant expansion, scale up
of team sizes and geographical expansion of teams. The Services include bulk
recruitment within the projected timeframe, especially junior/middle level. Genius has
got an all India network which enables quick processing of responses and manages the
entire process effectively.
ORGANISATIONAL STRUCTURE

DIVISIONAL HIERARCHY AND COMMUNICATION FLOW (PSS)

NATIONAL LOCATIONAL
HEAD-PSS HEAD

NATIONAL
VERTICAL
HEAD-H.O. DIVISIONAL/
VERTICALHEADS AT
LOCATION

FRONTLINE
MANAGERS/
EXECUTIVES

Figure 1.4Organization Chart showing Divisional Communication Flow (PSS)

ACHIEVEMENTS

GENIUS CONSULTANTS LIMITED has 1200 Clients of National and International

repute. It has already done 11250 Middle & Senior Placements in 16 Countries. Its core
strength is in recruitment of middle, senior and top management level in Sales and
Marketing Accounts and Finance, IT (Hardware & software), Telecom, ITeS & HR
professionals.

II. TEMPORARY STAFFING SOLUTION (TSS)

The buzz of today's competitive business environment is to streamline one's core
competence and strength to outsource the non core areas like payroll process and
recruitment of manpower through professional experts. Genius's OSD Division is one
such expert. In Temp staffing the candidate remains on the payroll of Genius and works
at the client premises.TSS enables mobilization of personnel and their placement at
clients identified locations Genius Consultants Ltd. payroll & Statutory requirement of
deputed associates.
DIVISIONAL HIERARCHY AND COMMUNICATION FLOW-(TSS)

HO- NATIONAL LOCATION

HR/COMM HEAD-TSS HEAD

HEAD OF
COMPLIANCE
DIVISIONAL
HEAD

COMPLIANCE KEY
ACCOUNTS
PROCESS
RECRUIT
MENTS

Figure 1.5 Organizational Chart showing Divisional Communication

Flow(TSS)

RECRUITMENTS
This department is primarily responsible for matching the right kind of people from the
different job portals, headhunting, networking references and recruiting them on a
temporary staffing basis. These candidates are screened by the recruiters and then sent to
the clients’ place for final selection.

PROCESS
This department is responsible for all the operational tasks that is left behind. After the
candidate has been selected ,there are numerous accounts ,that needs to be maintained
.They are-attendance, dummy attendance ,coordination for billing,collection,debtor’s
checklist, appointment and renewal letters, full and final settlement ,filing of
correspondences with the clients, advance management, and finally maintenance of
contracts.

KEYACCOUNTS
This department is also a part of the operations department and is interlinked with the
process department.It is responsible for Joining formalities( giving joining kit, temporary
ESI card and assigning of temporary account),PF,ESI and Bank A/C opening,updation of
PF and ESI numbers in GSPPI(GenSmart Pay Package –I-official software used to track
records),proper coordination of attendance/billing and collection with process executives,
statutory compliance management at sites,disbursement,payslip delivery, associate
management, client management ,master data.
COMPLIANCE
This department is responsible for managing the PF, ESI and other Statutory claims of
the temporary employees popularly known as associates. Genius has a separate exempted
PF fund maintained and monitored by the compliance department registered under the
Regional Provident Fund Commission. This separate Provident Fund Trust is made for
interest of the associates only. Due to the separate entity, the services have become much
more efficient and it takes very less time now to do the PF and ESI settlements. Added to
this previously, the organization was incurring an additional interest of 1.10% as
administration Charge for PF maintenance .But now, they are saving on that with a higher
time management. But this department has to send semiannual report on the claims to
RPFC.

III. PAYROLL PROCESSING SERVICES (PPS)

In this process though the candidates are deputated at the principal employers place but
they are under Genius’s payroll. Genius manages the individual and consolidated pay
slip, leave summary details, bank letter with details,ESI and PF report for the month ,ESI
and PF Summary for the month PT report –half yearly,PF-annual characteristics,ESI-
half yearly calculations and finally the income tax computations.

IV.BACKGROUND VERIFICATION SERVICES (BVS).

EVS is a time consuming and detailed task that requires highly specialized knowledge
and resources. It is also subject to numerous legal regulations.
Background Verification has four services.
a) Educational Verification
b) Personal Verification
c) Professional Verification
d) Financial Verification

Educational Verification.
It verifies the following:
 Degrees earned
 Types of Degrees earned
 When the degrees earned
 Duration of Degrees
 Degrees in progress
 Authenticity of Certificates and marks obtained

Personal Verifications
It verifies the following
 Name
 Age
 National/Citizenship
 Marital Status
 Family Members
  Address
 Relationship with family members
 Family atmosphere
 Social Status
 Family bindings and acceptability

Professional Verification
It verifies the following
 Dates of employments
 Employment Gaps
 Last position held
 Reasons for leaving
 Punctuality
 Salary
 Any warnings or notices against the employee
 Consistency in employment
 Work performance
 Character
 Integrity
 Reference checks

Financial Verification
It verifies the following
 Bank account statements
 Nature of expenses
 Credit card statements
 Sources of income
 Any loans they have taken
 Any insurance policies
 Any assets or liabilities
 Any other investments

V. HR CONSULTING

Every organizational structure deserves a well designed HR policy. Genius provides a

value added service in this specialized field of HR Consultancy through.

a) HR Policy
b) Manpower Planning
c) Organization Climate Survey
1.6 CERTIFICATIONS AND PRESS NEWS

ERA CIRTIFICATIONS

Genius is an active member of ERA (Executive Recruiters Association), a premier body

that represents staffing companies in India. Genius has been awarded by ERA as the
“Fastest Growing Staffing Company in India for the year 2006-2007.

PRESS NEWS

Human Capital

Geniusjobs.com, a unique job portal has been launched by Genius Consultants Ltd.,
leaders in recruitment and management consulting. Genius has launched this unique
portal to cater to a large number of jobseekers, employers and consultants efficiently and
cost effectively. Genius started its journey in the year 1993 from Kolkata under the
leadership of R.P. Yadav, Chairman and managing director and gradually spread its
network in Chennai, New Delhi, Mumbai and its associates in Bangalore. Genius has
established itself in the fields of human resources, recruitment, quality and environment
management and manpower outsourcing. In a span of 10 years Genius has become a
pioneer and one of leaders in the area of manpower placement in India placing around
5000 personnel in top, senior and middle levels in various industries satisfying 1200
corporate houses of both national and international repute. The new e-recruitment
division of Genius Consultants will provide e better service to job seekers, employers and
consultants. Jobseekers can search desired jobs and post their resumes free. Other value
added services include building a resume, career counseling and sending resumes to head
hunters globally. Geniusjobs.com also provides support to employers and recruitment
consultants during the recruitment process by helping then post jobs and accesses the
resume database. Employers can avail free ERM software which will help then to
shortlist the right resume and reject junk resumes as per desired parameters, saving
valuable time and money. The portal also provides a unique software CVMS for
manpower recruitment consultants. This software helps them to carry out their entire
business process online with complete confidentiality from posting jobs, calling the
candidates for interview auto-shortlisting and rejecting to raising invoice and maintaining
the entire MIS for the clients

Has HR outsourcing arrived?

According to a recent survey by Gartner Inc, 89% of midsize companies outsource at

least one HR function. Ditto for corporate India! Shares R.P. Yadav, chairman and
managing director, Kolkata headquartered Genius Consultants, “HR outsourcing gained a
headstart with Fortune 500 companies and multinationals, but now it is gaining
popularity with large and medium sized Indian companies too, specially those with
seasonal products, those seeking to restrict their overheads, and those who are proactive
and open to change. HR outsourcing is on a high because every company is thinking lean,
acting smart and concentrating on core competencies.”
....As Yadav puts it, “HR outsourcing definitely makes financial sense, provided one has
to see it a long term process. Financial gains could be direct and indirect…..for example,
a
gradual, stable increase in productivity, eradication of statutory obligations and reduction
of opportunity costs.”

Indian Express
Genius goes online
Kolkata based Genius Consultants, an integrated HR solution provider, has launched a
job portal called www.Geniusjobs.com to cater to the needs of jobseekers, employers and
consultants. The portal, which has a job base of 1,300 has recruitment, manpower
resourcing quality and environment and consultancy sections. The portal enables the
client to conduct online testing for the recruitments. Another feature is that the client can
shortlist and reject the candidate list, saving time and money of both clients and the
jobseekers.

Get headhunted by Genius

Although the unemployment rate of out country is soaring we do not need to hit the panic
button yet because of job providers like Genius Consultants Ltd. The company which,
had a very successful 2004-2005 by providing jobs to 7,400 people is now planning to
open up 15 more offices all over the country during the next fiscal.
Giving this information here on Wednesday, R.P. Yadav, the managing director of the
company said, “The new offices will be opened at places like Bhubaneshwar, Cuttack,
Coimbatore, Trichi, Guwahati, Nagpur and Pune. These offices will be franchise offices
and will provide employment to around 175 people.
Yadav feels that in the last one year the job scenario has improved considerable in the
I.T, retail, healthcare sectors and biotech industry. And the cities, which have shown the
greatest improvement, are Bangalore, Chennai, Delhi, Mumbai followed by Kolkata. He
added, “Although our revenue has gone up from eight and a half crore in 2003-04 to 15
crore in 2004-05 the profits are not as pronounced because we had to make various
investments throughout the year. The investments were mainly for technological
upgradation of the offices and of the website. Out target is to have a turnover of 30 crore
at the end of the 2005-06fiscal.Currently however, the mission for Mr. Yadav and his
team is to successfully establish Geniusjobs.com. “The website which was launched
barely nine months ago has successfully provided jobs to 2,200 people,” stated Yadav.
He added that the USP of the site was that it provided jobs to the front liners like call
center executives and programmers as well as to the middle and senior categories like
managers and V.P’s with more than five years of experience. Yadav also informed. “This
is the only website which matches the profile, CV and quality of jobs available. We act as
job hunters for the job seekers.”
The Economic Times
Kolkata based Genius Consultants, an integrated HR solution provider, has launched a
job portal called www.geniusjobs.com to cater to the needs of jobseekers, employers and
consultants. The portal , which has a job base of 1,300, has recruitment , manpower
resourcing , quality and environment and consultancy sections. The portal enables the
client to conduct online testing for the recruitments. Another features is that the client can
shortlist and reject the candidate list , saving time and money of both clients and the job
seekers.

1. Genius attitude survey is a Likert type scale which measures 12 dimensions of

employee attitude"
2. Genius Consultants Ltd., a city based firm is the first to start these surveys in the
Eastern Region".
Hindustan Times
A unique job portal has been launched by Genius Consultants Limited called the
geniusjobs.com it will cater to a large number of jobseekers, employers and consultants.
Genius Consultant was started exactly a decade ago by its present chairman and
managing director R.P.Yadav. It has offices in Chennai, New Delhi, Mumbai and
Bangalore. It has already established itself in the field of management consultancy,
resource recruitment and quality and environment management.

Job fair for IT executives

For those in the IT industry, the emerging destination for a lucrative career could well be
Kolkata.If Genius Consultants Ltd. (GCL) is to be believed, by 2010 the city is going to
be the major hub for Information Technology and its enabled services. With
multinationals such as TCS, IBM, Price WaterhouseCoopers coming up in a big way,
Satyam and HSBC planning to launch their second units and special projects of Reliance
and ITC Infotech in the pipeline, things couldn’t have got better.
Keeping this in view, GCL organized the 2nd “Wand in Job Fair’ at St. Xavier’s College
to provide a platform for those seeking jobs in IT, banking and insurance sectors.
Presiding over a programme at the fair, G.D. Gautama, principal IT secretary of state
government, said the government wanted to spread the growth of IT and enabled
services beyond the city. “Around 2000 candidates have visited the fair, which has
participation from DPS Technologies, Aviva Life Insurance, Infovision Software Pvt.
Ltd., Magma Leasing and HDFC Standard Life” he said. R.P. Yadav, GCL MD, said:
“We are planning such fairs in Delhi and other parts of the country later this year.”

Job market still not bright enough in city

If you categorize the job market into three grades – excellent, good and fair - I would say
the job prospects in Kolkata are fair. Even now, the rate at which companies are shifting
their offices from Kolkata is higher than companies coming to the city to set up shop.
Delhi, being the capital and Mumbai being the business capital of India, there are several
small and big industries in both cities. Job prospects in these cities. Job prospects in
these cities are better than in Kolkata. But there is always a silver lining. Information
technology (IT), Information Technology Enabled Service (ITES), call centers, BPOs of
 retail marketing are the rising industries in Kolkata and we try to provide applicants jobs
in such fields.

Sananda
1. "Placement Agencies play a very important role in the society of matching the
requirement of the company with that of the candidate."
2. "This role of matching is extremely difficult because along with professional
requirements, the attitude of the Company has to be matched with that of the
candidate".
3. "Credible agencies like Genius believe in providing best service to the client & not
in becoming a collecting center for biodatas."

Amrita Bazaar Patrika

"Genius Consultants have a vide to extensive clientele including corporate giants like
Shalimar Paints."

Times of India
Genius Consultants Operations

Within a decade of its operations in Kolkata, Genius Consultants has spread its wings
with office in Chennai, Delhi and Mumbai. The company now provides value-added
solutions in executive placements, manpower outsourcing, ISO consulting, corporate
training and HR policy framing. It has placed more than 5,000 executives in various
levels in over 900 corporate houses.

1.7OBJECTIVE OF THE REPORT

This report aims in finding out the followings

o To find out the functions of an HR team in Outsourcing Business

o To find out the KRA’s of “temp”staffing business

o To find out the lacunas and reasons for inefficiency of the services rendered by the
consultancy’s

o To find out the areas of KRA’s where HR plays a vital role

o To find out areas in which the role of HR can be improved in order to improve the
efficiency of the KRA’s

o To find out reasons for its advantages and increasing acceptance.

o And finally its disadvantages and impact on the people at large.

2. REVIEW

2.1 SCOPE

The industry is a US $140 billion business operating globally. It is a growing industry

especially for countries like India. Acquiring talent and retaining those employees in the
different client organizations for a substantial period of time is not an easy job in an era
of skilled workers who look for established name and positions. In this situation the role
of HR is very vital and crucial too. It has to meet the expectations of both the client
organizations as well as that of the associates’. The scope of this report aims in finding
out the different roles that the HR team undertakes in staffing candidates for the temp
industries. It also aims in increasing the efficiency of the KRA’s in providing the staffing
solutions .Added to this the report also focuses on the impact that it puts on people and
society at large and how HR can significantly interfere and increase the overall efficiency
of temp staffing. Keeping in mind the present economic fluctuations and stiff competition
if the efficiency is increased significantly then ,it is the most upcoming business in the
coming years to come.

2.2 PRESENT SCENARIO OF TEMP STAFFING

TEMPORARY STAFFING commonly known as Temp Staffing is the fastest growing

HR Trend in India which is finally catching up among the corporate world. While
industry experts estimate employee leasing to be $140 billion business worldwide, the
domestic staffing industry is yet to boast of big figures. The scenario is however about to
change considering the fact that in the near future 2.5 to 3 percent of the workforce in the
country will be hired on a temporary basis. The IT industry being a trendsetter of sorts,
will witness a large percentage of such hiring in the next few years.

A “temp” is a temporary worker with an organization who is on a third-party (staffing

company) payroll. A well-accepted norm in global companies, many large Indian
organizations are now hiring a part of their workforce from employee leasing firms. The
reason is not too difficult to guess—as organizations focus on their core business
strengths in a highly competitive environment, the non-core functions are outsourced.
The manpower for the latter is provided by the employee leasing company. The contracts
can range from three to six months, and there are no hassles normally associated with
recruiting and retaining people.

“While so far, the leasing workforce was active in order to meet short-term assignments
of companies to augment their workforce during peak periods or replace ‘leave
vacancies’ or sudden terminations, the current trend has seen corporates going for leasing
for specialized requirements,” says Ashok Reddy, managing director of Team Lease, one
of India’s largest HR outsourcing services companies in the space of employee leasing.
He adds that the demand for temporary workers has been fuelled by companies looking
for greater workforce flexibility, faced with fast paced market changes, including changes
in consumer demands and shorter product life cycles.

2.2.1 THE POSITIONS

It is a known fact that most companies prefer temporary staff to permanent ones,
furthermore there is a growing trend of outsourcing non-core functions to outsourced
staff. These range from accounts, front-office, sales, marketing and back-end operations.
TeamLease undertakes outsourcing for diverse sectors, including banking,
telecommunications, FMCGs, IT, manufacturing and retail, informs Reddy. The service
spectrum caters to functional activities involving office administration, technical support,
accounts and finance, HR support, marketing and sales.

Sunil Gandhi, centre head (Mumbai) of Mafoi Management Consultants, adds that in the
IT industry, positions that are largely outsourced are people at the entry level like
programmers, software engineers, networking and system administrator.

2.2.2 TYPES OF SERVICES OFFERED

Employee leasing companies offer a plethora of staffing solutions to their clients. Reddy
gives detailed explanation of the services that Team Lease provides. It includes:

Temporary staffing: Enabling the client to respond to short-term temporary and/or

flexible manpower needs with specific skill set requirements or for supplementing the
workforce. These services could be of a part-time, full-time or job sharing nature.

Temporary-to-permanent services: The client can hire associates as temporary

employees for a trial period of employment; after a satisfactory trial period, a company
has the opportunity to add a temporary worker to its permanent staff; by moving the
employee from Genius payroll to that of the business client.

Long-term contract: Corporates can opt to enter into assignments for long-term and
indefinite periods of time with Genius associates.

Managed services: Genius Consultants Ltd. provides the onsite management of the
contingent workforce at the client facility. It retains the responsibility for the supervision
of the leased employees as well as the accountability for the results of the facility or
function that have been leased.Mafoi also offers contract staffing, flexi-staffing and
managed services and has more than 6,000 people on contract employment. The company
has 30 offices all over India. Manpower Inc, a recent entrant in India, also provides a
range of solutions to its clients across the value chain. A world leader in staffing
solutions, it provides workforce management solutions and services to 4,000 customers in
63 countries.

2.2.3BENEFITS TO THE ORGANISATION

The trend of temporary staffing has been popularized in India by MNCs who have been
aware of the benefits in their experiences in other countries. The advantages are many.
“The opportunity to concentrate on core areas as non-core areas are taken care by experts,
benefits of scale, long-term cost benefits and a responsible employer image,” states Rohit
Mathur, general manager, workforce solutions India, Manpower. “There is flexibility of
employment, and ease of recruitment and replacements,” adds Gandhi of Mafoi. He
reminds that statutory complexities are also taken care of by the staffing company. Most
industry experts agree that there are no flip sides to the arrangement, Mathur however
points out that there is often a misconception that this is an extended payroll service.

2.2.4 THE TEMPS

Who constitute the growing number of leased employees? This question takes special
significance in a country like India, where job security is an integral part of one’s psyche.
The range is astonishingly varied. “People who want short-term options, freshers wanting
to gain experience, experienced people for specific experience and of late even top
management guys for interim management options,” answers Mathur, not forgetting to
add that it does provide a reasonable secure and dignified employment option. Reddy
agrees that the biggest beneficiary of temporary employment in India have been freshers.
“The workforce available for such temporary employment has existed in excess of
demand in the Indian context; and increasing manifold in today’s date given the dynamic
market conditions, hence corporates are looking at leasing as the viable option to meet
their short-term manpower needs.” The attitude of today’s workforce, he believes, is
driven by rewarding employment opportunities coupled with career guidance and
flexibility to choose the nature and duration of work. Furthermore, many employees
choose temporary employment as an avenue to exhibit their talents to the client
organization, which could be a stepping-stone to a full-time permanent career. Temporary
employment has often been an effective entry route into big companies. And, is it
possible to find top performers among the temps? “Yes, but one should remember that
such people are employed typically for non-core areas and attracting top class talent for
non-core is an issue, it has nothing to do with temp staffing as such,” answers Mathur.
Reddy however claims that the leasing model attracts management talent far above the
commodity-level.

2.2.5 DIFFERENT FROM BODY SHOPPING

Many often confuse employee leasing with body shopping. Reddy explains the
difference: “Temping cannot be compared with body shopping as the former requires a
much higher level of involvement by the outsourcing partner with the leased associates in
order to manage and retain them.” It is also not possible for traditional search firms to
offer the specialized services normally provided by an employee leasing company. “The
temping route requires specialized talent at the senior level. While traditional placement
companies approach business in a transaction mode; workforce suppliers need to devote
bandwidth through its people and process teams in servicing customers (the client and
leased associates) on a recurring basis,” he states.
 2.2.6 THE FUTURE

Temporary staffing is expected to grow exponentially in the country, in the near future.
“It is the quality and ease of availability of manpower that would define the role
employee leasing organizations stand to play, not only in non-core functions but also
certain core business areas of organizations,” points out Reddy, adding that it is
imperative for outsourcing partners to move from “only” employee leasing to complete
end-to-end “activity management.” It is also necessary for outsourcing partners to be
equipped with vertical and functional specializations, with key differentiators customized
to the Indian employment scenario.

In a recruitment market where the concept of full-time employment is increasingly

becoming a thing of the past, temporary staffing is emerging as the viable option.

Advantages Of Temporary Staffing

o The opportunity for organizations to focus on core areas

o Flexibility of employment
o Ease of recruitment and replacement
o Long-term cost advantages
o Benefits of Scale
o Tax deductions

Added to this there are also there are several disadvantages also. They are

o Less productive than the permanent counterpart

o Employee replacement backup
o Increase in the number of lawsuits
3. DESIGN

As a Summer Intern in Genius Consultants Ltd.,I was asked to write a paper on “Role of
HR on Temp Staffing .My entire project was divided into the following steps .

• FOCUSSING ON GENIUS
Genius being a consultant itself, I was asked at first to focus on the different activities
performed in different departments under TSS-Recruiter, Process, Key accounts and
Compliance. Thus, inorder to understand the temp staffing business and to identify the
functions of the HR team in Outsourcing, I was asked to understand the operational
activities of the HR team in temp staffing. This exercise not only gave me an insight
about the role of an effective HR team in Outsourcing business but also helped me to
identify the KRA’s of the HR team and how its efficiency can be improved.

• READING ARTICLES AND THESIS PAPERS ON TEMP STAFFING

The paper on which I was working on is a very recent phenomenon. Added to this it was
a descriptive research project which needed extensive study. So, I searched the internet
extensively and read a number of research articles on temp staffing and Outsourcing. This
helped me to form an idea on the current trend on temp staffing business in India and
abroad, the reasons behind corporates resorting to temp staffing concept from permanent
staffing.

• SAMPLE SURVEY QUESTIONNAIRE

This report entails me to find out the role of HR in temp staffing which covers the
following:
o Reasons for temp staffing
o Advantages of temp staffing
o Disadvantages of temp staffing
o Future prospect of temp staffing
o To find out the lacunas of the KRA’s of HR in temp staffing
In order to derive to any conclusion, information regarding all the above mentioned
issues needed to be gathered. Since my report was more of research based and descriptive
in nature, primary data was essential in order to validate the my own findings.So,a small
survey was conducted having a sample size of fourteen(14) respondents. The sample
consisted of companies selected randomly covering almost all the major sectors. The
survey aimed in answering the aforementioned issues and was targeted to the HR
professionals and their views. I tried to cover companies from almost all the sectors from
IT, Infrastructure, BPO,to Electricals,Hotels, Insurance ,Airlines, Shoes and finally
manufacturing.
4. ANALYSIS AND INTERPRETATION OF DATA

4.1 TEMP STAFFING-a snapshot………………

Temporary staffing popularly known as Temp staffing in the corporate jargon is the
fastest growing human resource trend .Though the concept is yet to capture the Indian
market and take a lion share, but it is gradually taking its shape. It can be said that it is the
most preferred method of staffing among the corporates in today’s world. A “temp” is a
temporary worker with an organization who is on a third-party (staffing company) payroll
but is working on the principle employer’s floor. Rising input costs and tough
competition is forcing the companies to focus on their core activities and increase their
business efficiency. Thus companies are trying to reduce their expenditure on non core
functions and lessen unnecessary liabilities by outsourcing employees in non-core areas
to a third party employer who recruits and also manages the payroll of the temp
employees working on their premises. It has been calculated that the cost incurred by the
corporates in the aforesaid functions for temp employees is much less than their
permanent counterparts as they are saving substantially on PF, ESI and other statutory
liabilities .When an employee is outsourced to a third party staffing company or
consultancy, it is the responsibility of that consultancy to maintain the statutory liabilities
of the temp worker called the associates and take care of the PF, ESI and other statutory
benefits. In case if the associate falls under the Gratuity benefit slab and claims for
gratuity, it is the responsibility of these consultancy to give him/her the benefits.
 ASSOCIATE
OR
CONTRACT
LABOUR

COMMON
PLATFORM
FOR TEMP
STAFFING
BUSINESS

PEO
OR TEMP AGENCY
COMPANY OR
CONTRACTOR

Figure 4.1 Diagrammatic Representation of the three entities of temp staffing

Advocates of the temp recruitment model say it helps companies to remain agile,
enabling them to expand and contract their workforce and their expenses with the flow of
the market. Because companies can select people with the exact skills they are seeking
for a specific amount of time, temps are often an ideal, if temporary. More and more
companies are beginning to understand what benefits these short-term assignments can
bring to an organization. Temping allows companies to hire temporary staff to cater to
peak demand conditions, hire staff with specialized skills for projects of short duration, or
terminate temporary staff when demand falls

Temp jobs offer flexibility to both employees and companies. Candidates can choose
when, where, and how they want to work. Companies get the skills they need to keep
fully staffed during busy times. Temp jobs give flexibility to the employees so it gives
time for them to pursue non-work interests.
 Contract jobs provide a bridge to permanent employment. Candidates can try out
prospective employers and showcase their skills towards a permanent job. Most of the
contract workers feel that it’s a way to get a permanent job, and also there can arise a
choice among the temp workers where they select and move on to get a permanent job,
else they can find another employer and try for a better job. Even from the company’s
perspective they have the choice to offer the temp worker for the permanent position. The
biggest advantage from the company’s view is that it has lesser number of employees on
the payroll and by that it saves on all functions and all related costs like recruitment,
payroll, training and development benefits, bonus, leave with pay and all such legal and
statutory provisions and secondly it helps the company to buy skills rather than develop
skills. According to Naveen, a contract employee in Hindustan Unilever Ltd., comments
“that the company does not have to pay for any PF and also they save on Tax etc, where
the company has to pay all these for permanent employees, and bank account need not
be provided for temps, they do not have us in the book of account”. Many candidates
choose contract work as an employment option. They can select their work schedule and
choose among a variety of diverse and challenging assignments. Most of the contract
workers prefer this alternative arrangement over traditional employment. Employees
prefer to work for a staffing company because they like the diversity and challenge of
different jobs. Candidates gain new skills or polish their skills through the variety of jobs
they are assigned to. Most of the Temp workers do gain new skills through their
assignments.

4.2ROLE OF HR ON TEMP STAFFING-Findings

To remain major players in this critical arena, HR professionals need to understand the
operational, financial and legal aspects of alternative staffing strategies.

Managing a company's human resources, already a challenging task, has become more
difficult with the proliferation of alternative staffing options. One alternative alone -
temporary staffing - has evolved and grown into a nearly $40 billion industry, largely in
response to corporate demand. Sophisticated employers seek tailored solutions to staffing
problems, rather than simply increasing payroll when increased productivity is needed.

Although most companies rely on some alternative staffing arrangements, those

arrangements often develop haphazardly or on a departmental basis, rather than as part of
a comprehensive staffing strategy managed and administered by HR professionals. In
some companies, employees from non-HR disciplines such as purchasing, budgeting or
accounting have begun to take the lead in making those arrangements. But HR does not
have to - and should not - accept a reduced role in this critical arena.

Only HR professionals have the unique perspective and qualifications to evaluate a

company's overall staffing needs, develop a comprehensive staffing strategy and, with
senior management's approval, administer that strategy. Too often, purchasing agents or
cost accountants who take on this task focus on the unit cost of employees, while giving
short shrift to critical human factors such as morale, training and development, and
building team spirit. But as HR professionals know, those factors translate into
productivity which, in turn, leads directly to profits.
The need for alternative staff should not set up a battle between purchasing and HR. Just
as HR managers typically defer to purchasing when a new product is needed, purchasing
should be subordinate to HR when staffing decisions are made and policies adopted.
Purchasing and cost accountants simply do not share the experience and training HR
professionals have in making sure organizations have the right human resources in the
right place at the right time to do the job most productively and cost effectively.

To develop a comprehensive staffing strategy, HR professionals must thoroughly

understand alternative staffing, particularly the distinctions among the various
alternatives.

4.2.1WHAT IS ALTERNATIVE STAFFING?

In conventional employment, the organization directly hires, supervises, pays wages or

salaries, and provides benefits to individuals; both employer and employee typically
contemplate a relationship of indefinite duration. All other staffing arrangements are
considered alternative. But the alternative category includes many different types of
staffing arrangements.

According to the most recent Bureau of Labor Statistics data, about one of 10 U.S.
employees is employed in an alternative working arrangement. In a typical corporation,
conventional employees may make up about 60 percent of the workforce, with the
remaining 40 percent divided among various types of alternative staffing. The 12 most
common types of staffing arrangements are defined below.

In developing a comprehensive staffing strategy, HR's first task is understanding the

advantages and disadvantages of each type of arrangement from three key perspectives:
operational, financial and legal. Armed with that knowledge, they can then match the
appropriate staffing solution to their employer's specific business needs and objectives.
Then, one or more agreements with appropriate staffing vendors can be negotiated and
executed.

Which alternative staffing solution will work best depends on many factors, including the
functions to be performed, time and financial constraints, and concerns about legal risks
and liability. There is no one-size-fits-all solution. On the contrary, most organizations
benefit from using several arrangements simultaneously.

4.2.2. OPERATIONAL CONSIDERATIONS

In any situation, the optimal staffing solution produces the correct number of qualified
workers for the job in the most cost-effective manner. HR professionals must never short-
change operational requirements - getting the job done should be the paramount
consideration in any staffing strategy. Even the most elegantly designed staffing strategy
will fail if line managers do not continuously see results.
When developing a staffing strategy, pay careful attention to the transition period,
whether from regular to alternative staffing, or from one type of alternative staffing
arrangement to another. The transition must be carefully planned and implemented in
phases, with advance notice to all affected managers and employees. Many well-designed
staffing strategies have been short-circuited because of confusion and problems during
this phase.

Different alternative staffing options require different emphasis in planning. For example,
clear communication and written explanations to managers and employees are often
enough for the transition to an arrangement with a Professional Employer Organization
(PEO), because employees' daily work assignments and supervision should hardly be
affected. In contrast, outsourcing a function may lead to layoffs or transfers of regular
employees to another company entirely, so the planning process must be considerably
more detailed.Time differentials must be factored into arrangements, also. Converting to
a technical contract service in lieu of independent contractors can be implemented
quickly. But converting from multiple vendors to a master vendor program may take a
full year. Maintaining successful operations during that period will be vital.

A word of caution about master vendor programs

There is significant controversy in the staffing industry about the legality and propriety of
payroll transfers of temporary employees from one staffing firm to another. One such
controversy in New Jersey culminated in a 1996 jury verdict of $250,000 against the
master vendor, which had been sued for so-called temp-napping - taking several dozen
temporary employees from the staffing firm that had originally assigned them to the
client company. When entering into a master vendor arrangement, be sure to take into
account the concerns and legal rights of outgoing staffing vendors. Once the transition
period is behind you, focus on maintaining the staffing solution to meet operational
needs. Be flexible; let cost concerns and operational requirements drive the staffing
strategy, not vice-versa.

4.2.3FINANCIAL CONSIDERATIONS

HR professionals who carefully assess the costs associated with each staffing option can
counter inaccurate but widespread perceptions that they are not attentive to bottom-line
concerns, and that HR programs are all expense items the revenue producers must work
hard to pay for. Carefully managing a sophisticated alternative-staffing strategy gives HR
an opportunity to prove otherwise.

Each staffing option is priced differently and all have both indirect costs and direct costs.
For example, using traditional temporary employees is attractive because of their
relatively low hourly cost, but may increase training costs, produce more absenteeism,
interrupt work flow and impair productivity. Those indirect costs must be added to the
wage rate to gauge the true cost of using many short-term temporaries, rather than
outsourcing the function, implementing a temp-to-lease program, or engaging
independent contractors for specific projects as needed.
In assessing an alternative staffing strategy's cost, the benchmark should be the difference
between the cost of getting the same volume of work done at the same quality and in the
same time frame by regular employees and the cost of using alternative staff. When
budget analysts complain that the company is over budget on temps, they rarely compare
what it would have cost to have the same volume of work done by conventional
employees.

Negotiating strategies. HR professionals who want to manage alternative staffing

arrangements must become tough, but fair, negotiators. Alternative staffing arrangements
require HR professionals to manage business relationships with independent staffing
firms, many of which are larger than their clients and more sophisticated about staffing.

Negotiating with a staffing firm is not strictly a price-and-terms deal that you take or
walk away from. Because the staffing firm will be an integral part of your corporate
culture for a long time, and will play a significant role in helping meet your business
objectives, it should be viewed as a partner, not an adversary. By better understanding the
business and operations of staffing firms, HR can more effectively fine-tune the
negotiating strategy to obtain the lowest feasible cost.

Negotiating the best price does not mean gouging the staffing firm. If you force it to
agree to a price much lower than what other clients are paying, the firm will likely place
its highest qualified, most productive employees or consultants with other clients.

But do not be reluctant to insist on volume discounts, rebates based on usage, and free
value-added services. Many staffing firms offer comprehensive training and cross-
training programs, and they are often willing to allow a client's regular employees to take
advantage of their training facilities. The National Association of Temporary and Staffing
Services estimates that staffing services spend more than $250 million annually on job-
related skills training. Competitive bidding is often a useful cost-control technique, but
evaluating the true cost of an alternative staffing strategy is far more complicated than
evaluating the best price for office furniture. When engaging the services of people,
remember that reliability and productivity vary widely. Consider building on an existing
good relationship with a staffing vendor, rather than simply awarding a contract to a new
firm that promises the lowest hourly rate per person. You may get what you pay for.

Similarly, micromanaging a staffing firm's business methods to keep your direct costs as
low as possible may produce unintended negative consequences. For example, some
companies try to dictate the staffing firm's markup by stipulating the bill rate (what the
client firm pays) and the pay rate (what the temporary worker is paid), but this approach
eliminates the incentive for the staffing firm to be as creative as possible in finding the
right person for the job at the lowest cost. By negotiating only the bill rate, you give the
staffing firm a tremendous incentive to work hard for maximum profit per person placed.

Unlike purchasing departments or accountants, HR professionals must be able to do more

than just negotiate the best price for an alternative staffing solution. They must be able to
compare quantitatively the costs of completely different staffing arrangements, taking
into account direct and indirect costs and operational concerns, while factoring in
supervision and control issues as well as potential legal liability under each option. For
example, once HR decides to use a PEO such as an employee leasing firm, the cost
negotiations are fairly circumscribed. But deciding whether to go the PEO route, which
PEO to use, and how that decision affects overall benefits administration and staffing
clearly falls in HR's domain.

4.2.4LEGAL CONSIDERATIONS

Before entering into any alternative staffing arrangement, HR professionals must

understand, and advise management of, the legal implications and potential liabilities that
arise with each type of alternative staffing arrangement. There are legal implications in
both the relationship with the staffing firm and the relationship with temporary
employees working at the company's site. Potential liability varies enormously depending
on the nature of the staffing arrangement. A developing legal doctrine, sometimes
referred to as co-employment, summarizes the legal relationship, rights and obligations in
some alternative staffing arrangements. In traditional temporary help models, the staffing
firm and its client are likely to be viewed as co-employers, or joint employers, under
most employment laws. But the further the relationship departs from that model, the more
difficult it becomes to determine whether or not a co-employment relationship exists.

For example, in a true outsourcing relationship, courts may view only the staffing firm as
the employer obligated to comply with the employment laws. But in some cases, the
client company alone may be liable for a legally invalid staffing relationship. Last year, a
court found Microsoft Corp. had misclassified workers as independent contractors; the
company had to pay back taxes and penalties, and the workers were retroactively eligible
to participate in certain benefits plans available to conventional employees.

Potential liability for coemployment varies significantly, depending on two principal

factors: the context in which the specific claim of liability is asserted and the specific
nature of the alternative staffing arrangement.

4.2.5THE FINAL CONTRACT

Once human resource and management decide on the desired alternative staffing option
and identify a qualified staffing firm, the terms of the transaction must be put into
writing. Learning the mechanics of negotiating agreements is easier than arriving at the
substance of what the agreement is supposed to produce: highly skilled and qualified
people to perform specific tasks.

Since human resource professionals are expert in the latter, they should not relinquish
control of the process when it reaches the contract stage. Instead, they should take the
lead and work with legal counsel experienced in writing staffing contracts. Remember,
agreements do not create an understanding, they record it. The best agreements accurately
and precisely reflect the underlying transaction.
While the terms of the agreement necessarily vary depending on circumstances, here are
a few general points to remember:

* Beware of preprinted or standard forms: When negotiating an important contract, you

must understand and agree with every clause. Anything you don't understand should not
be in the agreement.

* Clarity is essential - keep your contract simple and straightforward. Clearly define the
respective rights and obligations of both sides. Resist the temptation to leave ambiguous
provisions for later interpretation.

* Consider including an alternative dispute resolution provision.

* Make sure the agreement includes a simple opt-out procedure if the company is
dissatisfied for any reason - be wary of fixed-term agreements.

* Negotiate clear and precise provisions for what happens when the relationship ends or
the contract expires - these are the most likely times for disputes to mushroom into
unnecessary litigation.

HR professionals can best serve their organizations by demanding a role in the

management of alternative staffing that is comparable to the part they play in managing
staffing policies and practices for conventional employees. HR practitioners can
demonstrate leadership in staffing - an increasingly important component of their
profession - by developing a comprehensive strategy.

4.3TYPES OF TEMP STAFFING

Today's alternative staffing options are flexible and creative enough to meet varied needs
of employers.

1. Traditional temporary help. In the traditional scenario, a person is recruited, tested,

screened and employed by a temporary help firm. The temporary firm assigns people to
work at clients' sites, generally to support or supplement the workforce to cover
employee absences, temporary skill shortages, special assignments or projects of finite
duration. Temporary employees may be obtained from many different services
simultaneously. Some temporary help firms specialize in particular industries or specific
types of personnel.

2. Long-term temporary assignments. Many companies now use temporary employees to

supplement their regular workforce on an ongoing basis, rather than simply as short-term
replacements. The overall. size of the temporary workforce ebbs and flows depending on
workload, thus enhancing the stability of the employer's core group of regular employees.

3. Master vendor arrangements. In these arrangements - sometimes referred to as an on-

site program or vendor-on-premises - one staffing firm supplies all needed temporary
employees, which consolidates billing and invoicing, and streamlines
administration.Generally, the master vendor will assign one or more of its employees to
work on the client's premises to coordinate all job orders, orient new temporaries, oversee
scheduling, compile reports and statistics on temp usage, and perform other
administrative tasks.Master vendors often engage staffing-firm subcontractors (secondary
suppliers) to help meet the client's supplemental staffing needs. In such cases, the on-site
coordinator serves as liaison with those firms.

4. In-house temporary employees. These are people employed directly on the company's
payroll on an explicit temporary basis. Sometimes referred to as "floaters," they typically
rotate among departments, depending on work requirements. In-house temporaries are
not usually eligible for benefits programs.

5. Payrolling. In payrolling, the company needing help identifies specific people and
refers them to a staffing firm, which employs them and assigns them to work at the
company. The staffing firm oversees the pre-employment process, administers the
payroll, retains employment records, provides workers' compensation coverage, absorbs
unemployment costs if the person is laid off, and locates replacements when necessary,
usually for a lower cost than that charged for traditional temporary employees.

6. Part-time employees. Employees scheduled to work less than a regular work week on
an ongoing basis may be on the company's payroll or assigned through a temporary
service. Their eligibility for benefits depends on various factors, including the number of
hours worked and the terms of the company's benefits plans.

7. Independent contractors. Self-employed individuals whose services are engaged on a

contract basis are hired to perform specialized tasks generally requiring a high level of
independence, judgment, skill and discretion. Independent contractors are compensated
on a contract or fee basis, are issued Form 1099s, and are free to render services to other
organizations. People who work as independent contractors must genuinely satisfy the
legal criteria for that status, or the employer may be held liable for payroll taxes, benefits
and other payments.

8. Contract technical workers. Highly skilled technical workers - often professionals

such as engineers, electronic data processing specialists or database architects - are
supplied for long-term projects under contract between the company and a technical
services firm. These professionals often travel or work on projects far from their homes,
and may have multi-year or indefinite assignments.

9. Employee leasing. A company may transfer all employees, substantially all

employees, or sometimes just the employees at a discrete facility or site, to the payroll of
an employee leasing firm or Professional Employer Organization (PEO) in an explicit
joint-employment relationship. The PEO then leases the workers back to the client
company and administers the payroll, provides benefits and benefits administration,
maintain personnel records, and performs most of the functions normally handled by an
HR department.
10. Outsourcing or managed services. In these arrangements, an independent company
with expertise in operating a specific function contracts with a client company to take full
operational responsibility for performing that function, rather than just supplying
personnel. Companies usually outsource functions peripheral to their core business -
security, landscaping or food services - but the range of functions companies are
outsourcing is increasing. Some companies have outsourced the task of managing their
alternative staffing programs.

11. Temp-to-perm programs. These employees are hired on a temporary basis - generally
through a temporary help firm - with the understanding that if they perform competently
for a specific period they will receive offers of regular employment.

12. Temp-to-lease programs. In these arrangements, a company contracts with two

(usually affiliated) staffing firms, generally a temporary service and a PEO. The
temporary service recruits, screens, interviews, tests and assigns its employees as long-
term temporaries at the client company. After a negotiated period of satisfactory
employment, the temporary employee is "promoted" to leased employee status and
transferred to the PEO's payroll, becoming eligible for specific benefits through the PEO.

4.4 SAMPLE SURVEY QUESTIONNAIRE ANALYSIS

Since I was asked to find the role of HR in temp staffing, I prepared a Questionnaire of
qualitative nature among a sample size of fourteen(14)companies,selected
randomly.Though its a recent phenomenon, Temp Staffing is practiced by almost every
organization nowadays.So in order to reduce any error in sample selection ,the
respondents where selected randomly covering almost all the major sectors eg IT
,Infrastructure, BPO, Electricals, Hotels, Insurance, Airlines, Shoes and finally
manufacturing.

The responses received from the questionnaire are analyzed below one by one.
### REASONS FOR OUTSOUCING TEMP STAFFING

10
9
8
7
6
5
4
3
2
1
0
Concentrate Legal Easy Cost Statutory Specialised
more on core Obligation recruitment reduction Complexities Vendor
activities and service
replacement

Figure 4.2 Diagram showing the comparative analysis of the reasons of temp staffing

Explanation

Here in the above cylindrical bar graph the X-axis defines the reasons among the
corporates for outsourcing temp staffing from permanent staffing .And Y-axis defines the
number of respondents.
From this bar graph it is well understood that corporates mainly outsource temp staffing
so that they can focus more on the core activities of the organisation.But it can inferred
that concentrating more on core areas,flexible and easy recruitment and finally the cost
reductions are the main reasons for any organisation for outsourcing.Though there are
other significant reasons also,like reducing legal obligation,statutory complexities and
Specialized vendor services.It was found that in Call Centres like Vodafofone Customer
Care Services,there are specialized call centre managers who are also outsourced and are
contractual staffs.The reason stated for a managerial post being outsourced is to get
specialised vendor service.Apart from a number of agencies and consultancies ,there are
certain specialized thirdparty vendors who has a wide pool of specialised
candiadates.Corporates thus, tie up with them and are able to get a varied pool of skilled
candiadates required for specific jobs at a much lesser cost.
Thus in today’s globalised environment it is the demand of the hour to have a competitive
advantage over the others in terms of
o Price
o Quality
o Delivery Dates
So, for arriving at an optimum efficiency level in all the three, it is the necessity on
the part of the organisation to focus on its products/services,and to cut down the cost.
###NUMER OF YEARS OF ACCEPTANCE

<1 year
1 year
>1 year

21%

14%
65%

Figure 4.3Diagram showing the proportion of the number of years of acceptance

Explanation

The above piechart shows the number of years of acceptance among corporates
.About 65% of the respondents said that they are outsourcing for more than a
year,21% informed that they are doing for less than a year and the rest i.e.14%
remarked that they are outsourcing only for the last 1 year. Thus most of the
companies are Outsourcing the Temp Staff for more than a year. From this
information, it can be inferred that Outsourcing of Temp Staffing though a recent
phenomenon is a well accepted practice among the big Corporate Houses and HR
Professionals .It is meeting the objective with which it was formulated and so is there
for quite a substantial period of time.Temp Staffing is in its penetrating stage and will
cover almost all the sectors keeping in mind the fluctuations of the economy and
business architecture.
###SATISFACTION LEVEL AMONG THE CORPORATES AREAS WHERE
THE SERVICES ARE LACKING

7% 7%
7% Excellent
14%
Very good

Good

Fair

Poor

65%

Figure 4.4Figure representing the proportion the satisfaction level

Explanation

Above chart shows that 65% of the respondents said that the services of the
consultancies are good. A very negligible percentage of the respondents said that it is
poor (7%).Similar is the case with fair (7%) and excellent (7%).14% of the
respondents said that the services are very good.

Outsourcing of employees is done mostly for non core functions .This means though
these functions are indirectly helping in increasing organizational efficiency but they
are not directly contributing to the KRAs of the organization. Also the works done are
repetitive in nature so skill up gradation is not that much a vital factor for these temp
workers. Hence constant vigilance for higher efficiency, up gradation and innovation
are not required so much compared to that with the permanent counterparts. The
diagram depicts that very small portion (7%) of the respondents said that the services
are excellent. And majority said the services to be good. This proves that though they
are satisfied with the regular operational tasks of the consultancies yet there are
certain areas where the services should be improved in order to reach optimal
satisfaction level.
 5% 5%

47%

43%

Timely recruitment Timely Salary disbursement

Poor quality of candidates Efficient statutory compliance
Figure 4.5Piechart showing the proportion of the respondents who are unsatisfied with
the services of the consultancies under different category
Explanation

Fig 4.5 depicts the areas where the services of the consultancies should be improved.
From the above figure it is seen that 47% of the respondents said that services lacked
efficiency in terms of timely recruitment and 43% timely salary disbursement .Only
5% respondents said that they are dissatisfied each for poor quality of candidates and
inefficient statutory compliance.
Timely recruitment and timely salary disbursement are the areas where the services of
the consultancies should focus in order to increase the overall acceptability in the
industry. This will not only increase the efficiency but also increase the scope of
outsourcing business.Corporates will rely more on its efficiency and might
outsourcing other functions to the consultancies.
Here comes the involvement of the HR professionals in carrying out the operational
tasks effectively.

CLIENTS’ POINT OF VIEW

Every person related to the HR department should understand how far a particular
staffing strategy will be feasible, keeping in mind the companies vision and objective
inline with the position and responsibility for which a candidate is required. All these
factors have to go in line with each other in addition to the companies’ strategic HR
policy.Strict demarcation has to be made before giving any requirement to the
outsourcing consultancies. Because based on this the candidate will be screened by
these agencies. A thorough study has to be made and the specific criterias along with
the nature of the job has to be pre stated by the HR department on the client
organization’s end.
CONSULTANCY’S POINT OF VIEW

As soon as the HR department gets the requisition for candidates for a particular job, the
very first thing that should be done is to analyze the nature of job,its responsibility and its
attrition rate (as it is a contractual job).After this candidates should be screened .There
should always be a back up pool of candidates in times of acute conditions so that the
clients’ should not have a dearth of candidates.

###CATEGORIES OF EMPLOYEES OUTSOURCED

Upper
10% Middle
5%

Junior
Lower 25%
60%

Figure 4.6 Piechart Showing outsourced Employee Categorization

Explanation

The piechart depicts that 60% of the companies outsource their employees working in
lower level and performing repetitive tasks (peons, security ,data –entry operator
,accounts executive, sales executive, receptionist etc)It is quite astonishing to find that
10% of the companies are Outsourcing employees belonging to upper level(CEO CFO
etc.Though it is a very recent practice in India but many organization have their top
management professionals who are the decision makers of the company, on a temporary
contractual basis. About 25% of the companies outsource employees from junior
level(executive engineer ,HR executive etc).And a mere 5% companies outsource
employees from middle level .In wipro ,there are people from middle management level
who are outsourced on a temp basis. Thus it can be stated that though mostly employees
working in noncore activities are outsourced but some times outsourcing is seen as a
valuable means to have an enriched pool of talent having professionals from different
fields without bearing long term legal hazards.
###ROLE OF HR IN TEMP STAFFING

26%

44%

30%

Operational Legal Financial

Figure 4.7Diagrammatic representation of the role played byHR in temp staffing

Explanation

The above figure states that HR ‘s most vital role is in operations (44%)followed by legal
and then financial. Before planning its human resource an organization must understand
the need for which the candidate is required keeping in mind the companies long term
objectives. Corporate HR, Strategic HR and Operational HR should go hand in hand in
order to get optimum result from outsourcing.HR plays the most crucial role here much
more than that of legal and financial.
This is because depending upon the requirement and necessity the budget allocation of an
organization can very.And so, both legal obligations and the cost part are dependent on
operational decisions.
### LEVEL OF SATISFACTION AMONG THE CORPORATES

14
12
10

Number of 8
respondents 6
4
2
0
YES NO
Satisfaction level from consultancy services
Figure 4.8Diagrammatic representation of the number of respondents who are
satisfied with the services of the consultancies
Explanation

The above figure 4.8 illustrates that out of fourteen respondents ,thirteen respondents
replied that they are satisfied with the services offered by the temp staffing
consultancies.Only one respondent is not.From this,it can be inferred that temp staffing is
a rising phenomenon and is here to stay keeping in mind the stiff competition and
economic fluctuations.
### ADVANTAGES OF OUTSOURCING (TEMP STAFFING)AND HR
ENGAGEMENT AS A RESULT OUTSOURCING(TEMP STAFFING)

6% 3% 3%
22%
6%

19% 9%

32%

Opportunity for organization to focus on core areas Flexibility of employment

Ease of recruitment and replacement Long term cost advantages
Benefits of Scale Tax deductions
Statutory Complexities Union Problems
Figure 4.9Piechart showing the proportion of advantages derived from outsourcing

Explanation

The above figure states that majority of the respondents (32%) feels that easy
recruitment and replacement, focusing more on an organization’s core activities
(22%) and long term cost advantages (19%)are the most significant advantages
derived out of outsourcing of temp staffing. Added to this there are other reasons also
like, flexibility of employment (9%),Union Problems(3%),Statutory
complexities(3%),Tax deductions(6%),Benefits of scale(6%).
Majority of the respondents said that long term cost advantages and opportunity to
focus on core areas are the main advantages of outsourcing. This is evident with the
following pictorial representation.
 12
10
8
Number of
6
respondents
4
2
0

/W
s
Pr &D

Ps
PA

og E
R
Pr ms

s
m

m
&

E/
O

D
ra
a

ra
E
T

M
R
E/ og r

og

pr
M

S
O

E/
E/

d
an
P
R/
Programs Undertaken
Figure 4.10Diagram showing a comparative study of the different programs
undertaken by corporates

Explanation

The above figure depicts that there are quite a few advantages of outsourcing. Majority of
the respondents are in favour of temp staffing and stated that it is because of outsourcing
these functions that they are able to focus more on upgradation of skill and knowledge of
the direct employees through training and development. Thus it can sated that the cost
reduced as a result of outsourcing is quite effectively utilized in Upgradation Programs
for direct employees.This not only helps in increasing organizational efficiency but also
helps enriching the resource pool and attracting newer talent. Other programs like
Employee Orientation Programs, Motivational Programs, Employee Welfare,
Performance Appraisal Rewards and Recognition, Organisational Development,
Employee Engagement Programs ,Retention Plans and Employee Satisfaction Surveys
and finally the MDPs.All these program help in increasing the overall efficiency of the
organization.
###DISADVATAGES OF TEMP STAFFING

10%

14%
38%

10%

14%
14%

Less productive than the permanent counterpart Employee replacement backup

Increase in the number of lawsuits Less Motivation towards the principle employer
Less bondage towards the principle employer High attrition rate
Figure 4.11Piechart showing a comparative analysis of the disadvantages of temp
staffing
Explanation

Fig 4.11 illustrates that 38% of the respondents feels that the temp employees are less
productive than their permanent counterpart. This is because of lack of motivation of
these temp workers towards their job This affects the organizational efficiency
considerably as every job has certain significance in its own. Other disadvantages are
employee replacement backup (14%), increase in the number of lawsuits (14%),less
bondage towards the principle employer(14%),less motivation towards the principle
employer (10%)and finally high attrition(10%)
Due to lack off motivation and uncertainty the attrition rate is high for temp employees.
As a result there is always a need for temp workers and the consultancies often fail to
provide replacement backup. Also, less motivation and bondage towards the principle
employer results in an increasing trend in the number of lawsuits, as the temp workers
feel that they are being underpaid than their permanent counterparts. They also feel that
they are deprived of financial benefits and compensation compared to the permanent
staff.
Ironically though organization’s are benefited in the short run, but in the broader
perspective this concept is creating a negative impact on the society. When an
organization is set up in an area ,it creates job opportunities for the people dwelling in
that area. More the income of an individual ,more will be the expenditure. This directly
contributes to the socio-economic development of the adjoining places surrounding the
organization. Similarly when an organization pays less to the temp workers, they hardly
contribute anything to the economic development of the place as their wage is bare
minimum to meet up their needs. Thus on a macro level for developing countries like
India, increase in the number of temp workers is a tremendous threat to the economy as a
whole.
 4.5 Limitation
Though the report was made with utmost precision and accurate information, yet there
was certain limitations .These are

o Time Constraint
o Biased feedback
o Non response
o Hesitant to disclose confidential information

o Time Constraint

The project tenure was only of two months and so the time was not sufficient enough to
do a full scale study on the temp staffing market. The sample size is only fourteen and
this is not sufficient to understand the temp business.

o Biased Feedback

As per the requirement of the report, I interviewed the HR managers and assistant
managers, who due to their busy schedule could not devote enough time even with prior
appointment. And so there was at times biased answers for some questions.

o Non response

The HR managers due to their busy schedule did not answer some of the descriptive open
ended questions due to lack sufficient time.

o Hesitant to disclose confidential information

Informations regarding temp staffing business are informations related to the HR policy
and strategy of the company. And so many HR managers were hesitant to close the exact
informations.Due to this there can be some biases in the report.
5. OTHER PROJECTS

MY DAYS IN GENIUS CONSULTANTS LTD

As partial fulfillment of the course of PGDM it was necessary on our part to undergo a
Summer Internship Program in a company. In an attempt to do so I was interviewed and
selected for undergoing a project on one of India’s leading consultancies named Genius
Consultants ltd.The experience over there was beyond explanation .Though I was given a
particular topic to work on ,my guide Mr.Y.P. Singh-President National Operations
Outsourcing gave me ample scope and opportunity to learn about thetemp staffing
business at large. He asked me to understand each and every procedure done in each of
the department of the company.Since I was doing my study on Temporary Staffing
Solutions I was asked to do an indept study of the different departments of TSS business
namelyRecruitment, Process, Keyaccounts,and Compliance.During the tenure of the
project I never felt that I have come to the company for doing my training.The
atmosphere over there was so cordial that I always felt to be an employee myself.
During my project over there, the company was having employee shortage and this
further accelerated my learning in the company.I was often asked to prepare dummy
attendance on an excel sheet and uploaded it to their official website. Based on this
dummy attendance the salary of the concerned associate will be calculated.This was a
great learning for me. Apart from this I sorted the CV’s and uploaded them in the
associate’s database in their official website. I was even asked to upload the appointment
letters in the appointment letter database in the official website. All these exercises gave
me ample scope to know how accountability is maintained in the workplace.

All in all it was learning experience for me .Thanks to Genius and of course thanks to the
Globsyn and my faculties.
 6. SUMMARY AND CONCLUSIONS

6.1 RECOMMENDATIONS

1. To have a well managed 360 degrees HR support for operational,

financial and legal functions.

2. To reduce the negative impact that is being created socio-

economically

3. To optimally motivate and utilize the temp workers

4. Huge Scope Ahead

The above mentioned major recommendations are discussed one by one in details below

6.1.1 To have a well managed 360 degrees HR support for operational,financial and
legal functions.

It has been found that temp staffing is a contemporary concept and is the only method for
the corporates to get rid off unnecessary liabilities but there are certain loopholes where
HR (both client and temp agency) needs to improve in order to have a total accuracy level
in terms operational,financial and legal .
Every HR prior to any decision on recruitment should have a thorough and indepth study
of the Corporate,Strategic and Operational HR policies.He/She should be in a position to
make choices which would meet all these levels .An organization is not an isolated
institution ,so whenever an HR places a requirement for a candidate he/she should have
athorough knowledge of the nature of the job,quality of work expected,efficiency
required ,attrition rate and finally should be in a position to justify whether it is in line
with organisation’s objective or not.
Only if he/she has this knowledge he/she will be in a better position to coordinate with
HR in the consultancy .Depending on this the budget of the organization is allocated and
then the legal formalities are met.

From the consultancy’s point of view, HR plays the most vital role in operations. Timely
recruitment and timely salary disbursements are most critical areas where improvements
are required and a well formulated strategy should be adopted. Timely recruitment can be
ensured if a back up databases of candidates are kept, so that whenever there is a
requirement, candidates for lower level are available in abundance .Timely salary
disbursement is an area where the agencies really need to increase their efficiency on .All
in all, the HR of the temp agency has to understand bit by bit the need and requirement of
the organization and constantly follow up with them so that they can transform their
satisfaction into delight.

6.1.2To reduce the negative impact that is being created socio-economically

Though temp staffing is a prospective way for the corporates to curtail the unnecessary
liabilities and focusing more on core activities ,it is not a permanent solution.If more and
more number of employees in lower ,junior and at times senior level also outsourced
then it retards the economical development of the country. This is because,the primary
motto with which an organization outsource temp staffing is cost reduction.So,when a
candidate is placed in a contractual job ,his salary is much less than the the permanent
counterpart.Lesser salary means lesser expenditure and saving as because the money is
just sufficient to meet the bare minimum for him and his family.Thus socio-economical
development of the local places in the vicinity where the organization is set up is slowed
down .This is a very critical issue especially for developing countries like India .Thus, the
only option in a situation where no organization can do away with temp staffing is to
outsource only those employees who are in the lower level only.

6.1.3 To optimally motivate and utilize the temp workers

It is actually a myth that temp staffs donnot need upgradation of skills.Every work has a
significance of its own and so has be made perfect .Also the temp workers are always in
an uncertainty for their future and so their motivatioval level towards their job and the
Principle Employer is quite low.This can be overcomed if the statutory benefits are
restructured and some more benefits are given to them.Organisation’s should focus on
optimizing the cost not reducing as the former will increase efficiency and performance
but latter will incur more costs in supervising and constant invigilation.

6.1.4 Huge Scope Ahead

Keeping the recommendations stated above in mind there is immense scope for the
Outsourcing business. Apart from temp staffing many more areas like Background
Verification Services, Salary Structure Outsourcing,HR Consulting ,facility help desk,
mobilization etc.
 Background Verification
Services
4% Salary Structure Outsourcing
4%
4%
4%
29%
HR Consulting

Substitute for manpower

requirement
Facility Help desk
40%
15%
Mobilization

Not outsourcing but consulting

Figure 6.1Piechartshowing the relative proportion of the future scope of temp staffing

The services of the consultancies have to be tailor made in order to increase the scope of
outsourcing.
From the fig 6.1 it is seen that 40% of the respondents are interested in outsourcing HR
consulting to the temp agencies.29% are interested in outsourcing background
verification services of their direct employees.15% are interested in outsourcing facility
help desks like support services. A very small portion (4%) of the respondents feel that
outsourcing of temp staffing is not a good idea and so can be viewed as s substitution
only when there is a dearth of candidates. Also only 4% of the respondents feel that there
should not be any outsourcing at all but consulting. According to me this error was due to
the lacunas of the services rendered by the consultancies.
Hence it can be inferred that Outsourcing has a bright scope ahead only is the limitations
are met on the part of the consultancies’.
 6.2 LEARNINGS

1) Learning from HR seniors

o Handling delicate situations

o How to behave and what to say in a corporate environment
o Handling Confidential and Sensitive Issues
o Extra Thoroughness

2) Learning from GCL

o Importance of Communication in the hierarchical structure of the corporate world

o To adjust to the working culture and coping up with the constraints and still
meeting the deadlines

3) Things I learnt and benefited most in this short stint

o Handling pressure and meeting deadlines

o Corporate Experience in HR
o How to handle data, make a report, feed data in the excel sheet and calculate
the salary etc.
REFERENCE SECTION
7. REFERENCE
7 .1 BIBLIOGRAPHY

Books referred to:

• HUMAN RESOURCE MANAGEMEN-Text and Cases by VSP Rao
• OUTSOURCING AND INSOURCING IN AN INTERNATIONAL
CONTEXT by Ashlyn M.Schniederjans And Dara G.Schniederjans

Website Visited
• www.bnet.com
• www.shrm.org
• www.expresscomputeronline.com
• www.geniusconsultant.com
• www.workforce.com
• www.wikipedia.com

Articles and Journals referred to

• Genius Consultant ltd’s new brochure
• Articles from bnet business network
• Articles from Strategic Human Resource Management’s official
site.
7.2 ABBREVIATIONS

Sl No ABBREVIATION FULL FORM

1. GCL Genius Consultants Ltd.
2. HR Human Resource Management
3. KRA Key Result Areas
4. CEO Chief Executive Officer
5. PSS Permanent Staffing Solutions
6. TSS Total Staffing Solutions
7. PPS Payroll Processing Services
8. BVS Background Verification Services
9. MRD Manpower Recruitment Division
10. ITes Information Technology Enabled Services
11. IT Information Technology
12. Temp Temporary
13. FMCG Fast Moving Consumer Goods
14. MNC Multinational Company
15. PEO Principle Employer Organization
16. CFO Chief Financial Officer
17. T&D Traning and Development
18. E/O Employee Orientation
19. E /M Employee Motivation
20. E/W Employee Welfare
21. PA Performance Appraisal
22. R&R Rewards and Recognition
23. OD Organizational Development
24. E/E Employee Engagement
25. R/P and E/S Retention Plans and Employee Satisfaction
26. MDP Management Development Programs
ANNEXURE
 8. ANNEXURE

8.1 SURVEY QUESTIONNAIRE

QUESTIONNAIRE FOR TEMP STAFFING

Name:
Designation:
Organization:
Date:

[Tick ( ) where applicable beside the boxes given below]

Q.1)Why does your organization outsource temp staffing activities?

Concentrate more on core activities

Legal obligation associated with long term employment

Easy recruitment and replacement

Cost reduction

Statutory Complexities

Anyothers please specify………………………………………………………

Q.2) How long have you been outsourcing?

<1 year

1 year

>1 year

Any others please specify…………………………………

Q.3) which are the consultancies you have outsourced the temp staffing activities to?
Ans……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………….

Q.4)Are you satisfied with the services rendered by the consultancy ?

Yes

No

Q.5)If yes,rate the satisfaction level derived from the service rendered by the consultancy.

Excellent

Very Good

Good

Fair

Poor

Q.6)If not, Why?

Ans……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………..

Q.7)In what way do you think the functions /services would have been better?

Timely recruitment

Timely salary disbursement

Poor quality of candidates

Inefficient statutory compliance

Q.8)Which categories of employees are generally outsourced?

 Junior

Middle

Lower

Anyothers please specify………………………………….

Q.9)In what way do you think HR plays a vital role in the entire gamut of temp staffing?

Operational

Legal

Financial

Anyother please specify……………………………………………

Q.10)Are you satisfied/convinced with the temp staffing concept practiced by your
organization?

Yes

No

Can’t say

Q.11) What are the advantages of outsourcing from the organization’s point of view?

Opportunity for organization to focus on core areas

Flexibility of employment

Ease of recruitment and replacement

Long term cost advantages

Benefits of Scale

Tax deductions

Anyother please specify……………………………………………………..

Q.12) What are its disadvantages?

Less productive than the permanent counterpart

Employee replacement backup

Increase in the number of lawsuits

Anyother please specify……………………………………………………

Q.13)Are the outsourcing activities meeting the objectives with which it was meant to be?

Yes

No

Q.14)If yes, how please specify./If not why please specify.

Ans……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………….

Q.15)Which are the other activities the HR team of this organization is focusing on more as a
result of outsourcing?

Ans……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………..

Q.16)Do you think the outsourcing activities are helping in increasing the organizational
efficiency?

Yes

No

Q.17)If yes,please specify how and if not how it is effecting?

Ans……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………..

Q.18) Suppose given a situation would you like to outsource anyother aspect to the
consultancies in future?

Yes

No

Q.19)If yes, which are the other activities you want to outsource which you think would help
in increasing organizational efficiency?

Background Verification Services

Salary Structure Outsourcing

HR Consulting

Anyother please
specify………………………………………………………………..

Any suggestions please …………………………………………………………………..

……………………………………………………………………………………………
……..
…………………………………………………………………………………………….
……………………………………………………………………………………………
………….
Thanks for your kind cooperation. This data will be of immense help in preparing my
project report.
8.2PROJECT ACTIVITY LOG

WEE ACTIVITIES PERFORMED

K
Week 1 From 22nd to 23rd ,I have been reading the HR and Business Policy Manuals
which consists of all the Hr practices of the company. Then I was asked to give
a presentation to my guide Mr.Y.P. Singh about what I have understood so far.
Then he asked me to go through the different processes which is done in
different heads and get a hands on knowledge.
Week 2 Till 30th april,I was asked to go through all the departments under
outsourcing and to find out what are all other HR outsourcing techniques
which other countries are practicing searched extensively through internet
and could get some data. Added to this I was asked to upload the CVS and the
APPOINMENT LETTERS of the temporary associates/employees employed in
different companies. I was asked to do this for SIMPLEX
INFRASTRUCTURES LTD and then for MAGMA and then for MITRASK.
Week 3 I have been doing uploading of the CV's and scanning the APPOINMENT
Letters and then uploading the appointment letters in their website for payroll
management called GSPPI.I also went to the library and read the HR manual
y and business manual of the company to know more about temp staffing and
its operations.
Week 4 I searched different websites like CiteHR ,salary .com ,www shrm.org ,bnet
business network and others. On Saturday I prepared a synopsis of the
project.I was also engaged in recruitment department on Friday and
Saturday.Along with this I have been scanning and uploading appointment
letters of Family Credit Limited
Week 5 This week I researched extensively and after taking the feedback from my
guide aI have prepared a questionnaire on temp staffing for the clients.
Week 6 This week I have prepared two questionnaires on temp staffing. After
preparing one questionnaire, after some days some upgradation was done and
I had to modify it. Finally the 2nd questionnaire was selected .Apart from this
I am uploading the CVS and the APPOINMENT letters of Khadims India Ltd .I
have also prepared a master sheet of Employee database of Johnson Controls
Ltd.
Week 7 Finally I started my survey. The allotted me with 10 client's name. I started
with WIPRO.I met the concerned person on 4.06.08.I was asked to give
feedback everyday, So I used to coordinate with Ms Rashmi Yadav-Director
and Mr.Y.P.Singh –President.
Week 8 This week, I went to metal junctions office in TATA centre and family credit. I
also went to hotel kennelworth,Hindustan Unilever Ltd.Lastly I went to
Sahara Sadan .All these people were quite cordial and I got fair feedback from
all of tem except Hindustan Unilever.Then I went to ABP and VODAFONE,
 the following day. Along with this I also learnt making dummy attendance of
the associates.
Week 9 This week went to Usha Martin and Heinz. Heinz gave me the information that
day only, but for Usha Martin I had to go on the following day. On
Wednesday, I went to Hotel Kennel worth and got the feedback. The same day
I went to Hindustan Unilever.They asked me to call the next tuesday.,I also
went to Khadims India ltd,and got the feedback. On that day itself I went to
IBM Daksh also. The HR manager out there has asked me to collect the
feedback on coming week. On Friday, I Ist went to IndianAirlines.There I got
a fair amount of feedback. Then I went to Peerless Hospital, and then Colgate
Palmolive. Both Peerless Hospital and Colgate Palmolive has asked me to
give a call the coming week. Today, I went to Peerless General Finance and
Colgate Palmolive. Peerless General Finance has asked me to come tomorrow
and Colgate Palmolive has asked me to mail the questionnaire. Apart from
this through I also I did manage some of the feedbacks from companies like,
GMR, Accenture, and Cafe Coffeday through internet. Finally I started with
the making of the project report.

During the entire tenure I had to come sharp at 9.30 a.m. and stay till 6.30
p.m..