Aniketh Sharma was laid off in June 2009 from a Bengaluru-based IT company. He lived for four months on his severance, while he looked for another full-time job. Eventually he ended up working for the same firm again.
But there’s a difference now. A big one. Aniketh has turned into a contract employee. He no longer gets any of the perks that he did as a permanent worker, like for instance, paid vacations, sick leave, health insurance or tuition assistance. And he estimates that he earns about 25 per cent less — for the same job he was doing before!
But he’s still happy for now. His reasoning: “Working on contract is a good way to take control when the indignities of the typical job search start to make you feel powerless. Who knows? You may be so successful on your own that you’ll never want to return to cubicle life. At least I’ve a better work-life balance now,” says 25-year-old Aniketh.
If Aniketh is looking on the bright side, it’s probably because in the current corporate scenario, he doesn’t have much choice. Just check any job search site and type in ‘freelance,’ ‘temporary’ or ‘contractor,’ and you’ll find hundreds of hits in a broad array of industries. As companies hire again, it’s the trainees, consultants, freelancers and contract workers that are in demand, compared to full-time workers.
Successful companies have begun to refocus on their core business, shedding non-essential services and staff. Sushma Bernet, a corporate coach with a Mumbai-based MNC, explains, “The reasons businesses rely increasingly on contingent or consultant workers, are clear: companies do not want to commit to the costs and responsibilities of directly employing staff to resource what are often temporary or highly specialised requirements. They can make substantial savings by using a flexible workforce that can be turned on and off at will and does not increase headcount.”
Many companies now realise that having a smaller workforce that is well trained and technologically savvy is more effective and less unwieldy than having a huge team.
Having survived the recession, many leaner, smarter companies and managers understand they cannot now revert to the old ways. Ramakrishna Karanam, vice president, Human Resources, Intelligroup, explains, “Companies are now cautious in the post-recessionary environment and hire contingent workers and trainees on a need basis as they suit such situations the best.”