Highlights – ISF Annual Report 2022

1. Staffing industry added new employment at a sharp 21.9% YoY (2021-22), compared to a
3.6% new employment generated in the previous year.

2. With robust employment demand seen from across sectors, 100+ members of Indian
Staffing Federation employ 1.26 mn flexi workforce (March 2022).

3. The new employment generated was at a much sharper growth rate than even pre-
pandemic years.

4. Staffing members at ISF added 2.27 lakhs new formal workforce in 2022.

5. General Staffing Industry nett new employment grew at 21%, adding 1.57 lakhs new
formal workforce, from the year before at 18.1%.

6. General Staffing Industry was primarily driven by demands from FMCG, E-commerce,
Manufacturing, Healthcare, Retail, Logistics, Banking, Energy etc.

7. IT Staffing Industry witnessed a sharp jump with 30.7% growth, adding further new
employment, than the year before at 14.1%. The demands were driven primarily with the
digital adoption across sectors. A few promising impact sectors to continue will be Fintech,
IT, Infra, etc.

8. IT staffing industry post Q2 also started witnessing a stabilisation in the demand, with Q4
bringing a sharp response from geopolitical scenario developing across the world from the
Ukraine war, impact of global financial markets among others.

9. Overall the Staffing Industry continued a stable Quarter on Quarter (Nett employment)
growth at 4.2% in Q422.

10. Staffing industry is poised to continue its contribution in the formal employment
growth, as demand is seen to be moving at a stable rate.
 Year on Year (YoY) : Staffing Industry (new employment) grew at 21.9% (2022)
ISF Members representing 1.26 mn Formal Flexi Workforce

Flexi Staffing Employment >> 2021- 22

Growth Trend YoY
Flexi Staffing industry 21.9% YoY
1500000 25
21.9 added new
employment at 21.9% 2020-21
1300000
Sluggish/
Volatile market 20
YoY (2021-22) 3.6 % YoY
Covid Year
1100000
16.3
Impact
>>
2019-20
ISF Members

21.9 % YoY (2021-22)

15 13.7 % YoY
900000 represent 1.26 mn
13.7 Formal Flexi
700000
10
Workforce 2015-18* 2013-15**
2021-22 16.3% CAGR 10.3% CAGR
500000

5 >> YoY Growth – Staffing Industry New employment growth

300000
3.6 2.27 lakhs New 2022: Robust employment market generating growth higher than pre-pandemic years
formal employment 2021: Due to Covid slowing employment
2020: Market volatility impacted employment, slowing staffing growth trend
100000 0 added to the 2019: Strong consistent double digit growth YoY for industry
Mar-19 Mar-20 Mar-21 Mar-22
Headcount Growth
workforce * 2015-18: CAGR growth 16.3% ( ISF-Kantar 2019 Report)
** 2013-15: CAGR growth 10.3% ( ISF-Nielsen 2016 Report)
(2021-22) Note: This is based on data from consistent respondents in all Qtrs only
QoQ Employment growth : Staffing Industry continued a stable growth at 4.2% : Q422

Flexi Staffing Industry

Employment Growth Trend >> >>
QoQ (Q4 2022) Staffing industry QoQ ISF members added appx
maintained a steady new 40000 new formal flexi
1300000
10.8
12 employment growth at 4.2% workforce (tripartite model) in
10 in Q422 Q422
1250000

8
1200000
5.4 3.8 6
>>
1150000 4.2
There is a steady increase in new
1.6 4
employment as growth rate stabilizes
4.7
1100000 2
1

1050000
0 >>
Mar-20 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422
-2 >> IT Staffing industry grew at 3.2% in
1000000 General Staffing industry Q422, responding to geopolitical impact
-4
contributed with new on the trends of employment trends in
950000
-6 employment at a 4.2% growth the IT/IteS sector
in Q422
900000 -8
Headcount (abs) QoQ Growth(+/-%)
-7
 General Staffing Industry grew at 21% YoY (2021- 2022)
General Staffing Employment >> General Staffing Industry
Growth Trend YoY (2021-22) General Staffing Industry witnessed Employment Growth Trend QoQ
1100000 24
a sharp growth at 21% YoY, with a 1000000 12

+2.9% growth from the previous year 11

1000000 21 at 18.1%. While it maintained a 950000
10
900000 18.1
20
robust growth QoQ at 4.2% in Q422
900000
800000
16 >> 8

21 % YoY (2021-22)
700000 ISF members added 1.57 lakhs 850000

600000 12
new employment across General 6

staffing roles 2021-22 800000

500000 3.6 4.2
4
8
400000 750000
>>
300000
4 General Staffing Industry was 700000
2
1
200000 primarily driven by demands from
FMCG, E-commerce, 650000 0
Manufacturing, Healthcare, Retail,
100000 0
Q421 Q122 Q222 Q322 Q422
Mar-20 Mar-21 Mar-22
Logistics, Banking, Energy etc. Headcount (abs) QoQ Growth(+/-%) QoQ Growth(+/-%)

Headcount (abs) QoQ Growth(+/-%)

REFERENCE: Q422: Jan – Mar 22
 IT Staffing Industry grew at 30.7% (YoY)
IT Staffing Industry >> IT Staffing Industry
Employment Growth Trend IT Staffing Industry witnessed a sharp growth Employment Growth Trend
YoY (2021-22) at 30.7% YoY, with a +16.6% growth from the QoQ (Q4 22)
100000 35 previous year at 14.1%. 100000 14
12.6
90000 90000
30.7 12
30
80000 >> 80000

25
IT staffing industry post Q2 also started 70000
10

70000
witnessing a stabilisation in the demand with 8
Q4 bringing a sharp response from
60000
60000 6.1 6
20
geopolitical scenario developing across the 50000 6
50000 14.1 world from the Ukraine war, impact of global 40000

40000
15 financial markets among others. 4
30000 3.2
30000 2
10 20000
>>
20000
IT Staffing Industry grew with demands 10000
Q421 Q122 Q222 Q322 Q422
0
5
10000 for digital adoption across sectors. A few Headcount (abs) QoQ Growth(+/-%)
promising impact sectors to continue will
0
Mar-20 Mar-21 Mar-22
0 be Fintech, IT, Infra, etc.
Headcount Growth REFERENCE: Q422: Jan – Mar 22
Flexi Staff Employment – Social Impact
>75% assignments are more than 3 months; 36% Flexi workforce engaged for more than 12 months

What is the average length of assignments for Average length of contract for Flexi workers? (%)
temporary workers? (%) 50 2020
90 2020 45
80 2021 40 2021
2022
70 35 2022
60 30
50 25
40 20
30 15
20 10
10 5
0 0
<1 month 1<>3 months >3 months < 3 months 3- 6 months 6 -12 months > 12 months

Average Length of Assignments Average Length of Contract

• >75% of the flexi projects/assignments are more than 3 months
• Short term projects of <3 months were slightly higher last year at 18%,
a growth of +7% YoY.
• The assignments help the flexi worker to grow their skills while being
employed, across industries.
• The organised flexi staffing industry tries to continually engage the flexi
worker on their behalf.
• There is a steady increase with >30% YoY contract length where
workers are gainfully employed for more than 12 months.
• There was sustained >35% contracts in the 6-12 month timeframe YoY.
• >70% of contracts are over 6 months of engagement between Flexi
staffing orgn and flexi staff.
• There was a slight increase in the projects with shorter duration of less
than 6 months with +3% and +5% for less than 1 month projects
increase YoY
Women Participation in Flexi workforce continued with 27%
Gender distribution of flexi workers- % Age distribution of flexi workers? (%)
50
90 2020 2021 2022
2020 2021 2022 45
80
40
70
35
60
30
50
25
40
20
30
15
20
10
10 5
0 0
Men Women < 24 yrs 25 - 30 yrs 31 - 45 yrs 46 - 54 yrs > 55 yrs
Gender Distribution Age Distribution

• In flexi employment Women workforce participation maintained a steady 27%
YoY.
• Most opportunities for flexi staff last year moved from outdoor sales to
essential delivery services.
• Over 73% flexi jobs are dominated by men.
• There was a +6% increase where people with 31-45 yrs of age participated in
the workforce moving up from 22% to 28%.
• Flexi workers in the age of 25- 30 yrs, continued to be the highest participants
with over 40% in the workforce.
• Interestingly, the majority participation in the flexi working population are
shifting to 31-45 yrs of age
• Almost 66% flexi workers are upto 30 yrs who participate in the workforce.
Flexi workers gainfully employed were +8% with higher skills YoY; +8% with medium education
Share of students among all Flexi Workers? (%)
• Average of 5% YoY students join flexi jobs in India
Students
5% • Initial level of education & Skills of employed flexi workers
Students • High level of education that cover Graduates and above, continued with 55% of the
4% flexi workforce in demand.
Students Requirement
5% for entry • The flexi workers with medium and low education level were significantly higher in
level Flexi demand from previous years with 32% and 14% respectively, as general staffing
jobs: picked up. Medium level education will be secondary education and low education
Education
Others
and skills will be represented through below secondary education.
95%
• In 2022 about 48% employed flexi workers were high skills, which is +8% higher than
Others
96%
previous years
Others • Flexi workers with medium and low skills also continued to gainfully employed with
95% 34% and 17% respective participation.

Initial level of education of Flexi workers? (%) Level of skills required to execute flexi work assignments? (%)

High High
2022 2022
Medium 2021 Medium 2021
2020 2020
Low Low

0 10 20 30 40 50
0 10 20 30 40 50 60 70
 +10% growth in flexi work compared to other formats of employment
Share of flexi work in the last 12 months? (%) Labour market situation for workers before and 12
100 months after working as flexi staff ? %
2020 2021 2022
80 38
42
Flexi Worker 39
60 32

17
40 14
Employed- Open End 11
15
20 25
31
0 Employed- Fixed Term 28
26
Flexi Work Others
42
Student 3
• Y22 witnessed +10% demand growth in flexi employment at 8 2022
61% compared to other formats of employment. 7 8
• Labour Market changes for Flexi worker 2022 vs 2021: Inactive 6
2021
Flexi Industry
Growth, & • Employment market saw 38% flexi workers continuing in 6
Labour flexi job YoY. 2020
Market 3 9 13
situation for
• 2022 continued to witness +3% increase YoY in open ended Umemployed
contracts 14 2019
flexi staff pre
post 12 • Workers associated with Fixed term employment dipped
months marginally -6% YoY 0 5 10 15 20 25 30 35 40 45
• The rate of unemployed Flexi worker after 12 months of
employment was at 9% in 2022. With 7% becoming inactive
as flexiworker
2022: 82% flexi workforce satisfied with their employment situation; 71% will prefer to continue as flexi employee

>80%
% Flexi workforce employed with
Formal Staffing companies show that
they are satisfied with their
% employment situation YoY

% %

Source: Indian Staffing Federation: Annual Flexi Employment Growth Report 2022
%

>70%
Flexi workforce ‘prefer’ to continue %
as flexi worker with Formal Staffing
companies Source: Indian Staffing Federation: Annual Flexi Employment Growth Report 2022
2022: 15% flexi workforce received a permanent employment; 50% flexi workforce were trained/upskilled to meet
employment demands

% >50%
Flexi workforce received training/
upskilling while employed with a
% formal staffing company

% %

Source: Indian Staffing Federation: Annual Flexi Employment Growth Report 2022

%
~15%
Flexi workforce gets absorbed as %
Permanent employee with acquired
experience YoY (2022). Source: Indian Staffing Federation: Annual Flexi Employment Growth Report 2022

Flexi work becomes their ‘first

stepping stone to permanent jobs
40% flexi workforce work under open contract; 74% work full time as flexi employee

Average number of
Share of flexi worker Share of flexi workers
hours which flexi
under an open-ended working on a full-time
workers on assignment
contract? basis?
work during one week?

40% (2022) 74% (2022)

48
36% (2021) 67% (2021)
hrs/week

15% (2020) 95% (2020)

Disclaimer
The research is a property of Indian Staffing Federation (ISF), apex body of the Flexi staffing Industry in India.
The research report has been produced with no biases towards any person/company/industry, however, has not been conducted in controlled environment with the respondents. The respondents were free
to reply basis their experience to the defined and close ended questions, executed and collected via a survey. The report published is for the consumption - partners, media, federation members and
respondents only. This may not be used in any part for commercial purposes without prior consent from ISF. Anyone using the report for reproduction, will need to seek consent from ISF and attribute the
credits accordingly.

About Indian Staffing Federation

Indian Staffing Federation (ISF) was formed with one common goal - Staffing India's Growth. The purpose of ISF is to enhance long-term growth of the staffing industry and to ensure its continued ability to
make positive contributions to the economy and society. The principal focus of the Federation's activities is to strengthen triangular employment relationships, in which the staffing company is the employer
of the temporary worker, who works under the supervision of the user company. ISF represents close to about 100 staffing companies as its members. Further details www.isf.org.in

About the Research

Indian Staffing Federation (ISF) conducts its quarterly research, to explore the growth of flexi staffing employment through organised staffing companies. Through a survey based research ISF has tried to
understand the employment generated in the quarters and gathered a sentiment of the next quarter, to come up with annual report. The survey also covered various dimensions of employment factors
impacting across top 15 sectors.

Methodology
The research is based on primary email sent to over 100 staffing members across the country for data collection in a span of 60 days, every Qtr. The research was completed with online input collection from
staffing operations/leaders within their company. The data has been closely evaluated to avoid any misrepresentation and avoid manual biases.

Contact
Abhishek Mishra
Manager- Research
abhishek@isf.org.in; suchita@isf.org.in

www.isf.org.in