Seniors needed, for short whiles only

More companies are now changing their staffing strategy by hiring senior managers on a temporary basis.

In the last 18 months, as many as 2,500 positions have been so filled by multinational companies. A temporary position refers to a short-period stint that is not subject to renewal.

For instance, an international bank has roped in a temporary employee to head its corporate banking operations in India. A multinational telecom company has also hired senior executives for its IT development division for a short time.

These executives are called floaters or "interim management" and are typically skilled specialists who come in, implement a strategy and move on to other jobs. A key part of the bargain is that they are paid a premium of 15 per cent over average salaries for the same profile.

HR analysts say that though the IT sector was the first to experiment with this strategy, the trend is fast catching up, particularly in multinational companies that set up base in India. The number of senior management executives hired on temporary basis may rise to around 3,500 by next year.

"Companies are shifting to this HR strategy so as to tap a wider pool of employees at the senior management level. Thus, even critical positions, including those of leadership, are being held by executives who are temporarily employed by the company," says Manpower India Executive Chairman Soumen Basu.

MaFoi Global Search Services CEO Sangeeta Sabharwal says, "Interim management, which is used to manage crucial projects like business turnaround and restructuring and product launches, is a new trend and it is growing fast in the MNCs."

In fact, companies are experimenting with the strategy as projects are increasingly scheduled to be completed within a fixed time-period. This even extends to the merger and acquisition (M&A) teams of most companies.

"M&A teams of most companies, which comprise temporary professionals, are headed by people with significant experience, but for a fixed time-frame. These teams are typically employed for a period of eight-nine months," says Basu.

Start-ups are also adopting this strategy. "A start-up, KPO recently hired its HR vice president with 15 years of experience for a period of just nine months," said Approach International President Gauri Sarin.