Differences between contract staffing and permanent staffing

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Contract staffing and permanent staffing are one of the widest used terms in the hiring circles at the corporate level. Holistically the terms are pretty self explanatory. If you have employees that are on your companies roles and managed by the HR guidelines of your organization then the staffing is said to be permanent. Here your intent is to keep them hired and engaged for a long period of time. Whereas in the case of temporary staffing, the staff hired is not directly on your payroll, but a third party takes care of their operations and management.

The above paragraph only scratches the surface of the terms, in reality the differences between both are deeper than the terms. One of the best definitions that we came across the internet for the same is provided by Change recruitment group. We are placing their version of the terminology here for our readers.


Clients require a member of staff who will work with them on a permanent employment contract. This also includes fixed term contracts (where you will be contracted through the client/employer’s payroll). For permanent positions, you will be eligible for full employee benefits offered by the client/employer


Clients require a member of staff to work with them on a flexible basis. Typically, these assignments will be for a fixed term and cover increases in workload, illness cover or maternity/paternity cover. You will have a contract of services through your agency for an agreed rate.

Why is temporary staffing gaining popularity?

Temporary staffing is gaining popularity in India for many reasons. Before we explore the reasons, we must understand what the common understanding about temporary staffing here is and how does it differs from the globally accepted definitions. In India, more often the clients don’t engage temporary staffing services for flexible working. Here the services are engaged for meeting sudden upsurge in production demands. Now this is a general statement, as the temping needs vary from industry to industry.

In our professional experience, there is a difference of understanding in services and manufacturing. While services sector might want to hire flexible staff the same is not the case for manufacturing concerns. The bigger chunk of temping services demand comes from the manufacturing sector considering the volumes from an agency point of view.

The manufacturing sector of India, in the last two years has seen massive changes in the way their operations are conducted. The Covid pandemic has put immense manpower strain on the sector and to meet the demands, the manufacturing sector has no other choice but to hire skilled temporary staff.


Temporary staffing solutions are a boon for every industrial sector considering the present operational environment. Temping services are now very tech-savvy and is more efficient in certain cases than permanent staffing.

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