Temps are now getting their worth's money

NEW DELHI: If you are confused whether to become a temp worker or not, here’s one reason to stop worrying. Remuneration packages for temporary workers, especially at the entry level, are catching up with permanent ones in the Indian job market.

This is a clear sign of a maturing labour market as globally, temps take home a bigger pay packet than their regular counterparts. Mumbai, Bangalore and Delhi are the hottest destinations for temps in the country.

An exclusive ET preview of the latest TeamLease salary survey reveals that with a 14% growth in salaries for temps in 2006, the gap is narrowing fast in India. Manish Sabharwal, TeamLease chairman, says it reflects a more efficient labour market. “Globally, temps command a premium for the flexibility that they offer to the employer.

It was the other way round in India which is a reflection of a very inefficient market. However, over time, the infrastructure to match the supply and demand for temps is improving,” he says. “Moreover, in the past a permanent job was driven by relationships between the employer and the employee. However, it’s more transaction-oriented now. So, there are both pull and push factors involved,” he adds.

The survey shows that even though salary hikes slowed down in IT and ITeS sector, at the national level it continued to be the highest-paying sector for temps in 2006, as in the previous year. As against 20% salary hike for temps in IT and ITeS in 2005, the corresponding figure for last year stands at 17%.

In terms of temp job verticals, the biggest salary jumps have been recorded in accounts, administration and HR functions. Here, some select job profiles like general recruiter, secretary and receptionist have notched up a 40% plus hike in salaries at the entry level.

Accounts and sales top the charts across the board while manufacturing and banking, financial services and insurance (BFSI) are the emerging sectors for temping. The number of temp jobs offered in manufacturing has increased by 24% in 2006 compared to the previous year.

What’s more, the salary increment for temps in manufacturing sector has gone up from 14% in 2005 to 17% in 2006. This is attributed to the industrial expansion in cities like Chennai, Pune and Mumbai, along with the conversion of unorganised contract labourers into organised temp workforce.

Among the cities, Mumbai, Bangalore and Delhi are the hot destinations for temping with higher compensation in such markets across all verticals. While Bangalore is the emerging location for HR and sales verticals, Mumbai is a prime location for accounts and Delhi for administrative temp jobs.

vivek.sinha@timesgroup.com