The term contract staffing refers to an employment arrangement, where an individual works for one company, but is an employee of a staffing company for a specified period of time, to complete a specific task, for a set pay rate.
In a contract employment situation, there are usually three components.
- The client company: They are the one that has the staffing need. This need is often tied to a specific project or task with a deadline.
- The contractor: They are often referred to as the contract employee and is the worker who is going to perform the task.
- The staffing company: During the placement of the contract worker, they become the contract resource employee for the contractor and handle things like payroll, taxes, workers compensation, and benefits.