Employees are assets but workforce is a liability.
“Employees are our assets” almost every CEO has perhaps used it at least once in his lifetime. However, adding these assets under these uncertain economic conditions has become somewhat difficult. Companies, big and small alike, often do not have a steady influx of projects. You may have projects to engage 600 people in one part of the year in other parts of the year you may not have enough work for 200 people. In such cases it is impossible to maintain a workforce of 600 throughout the year. This problem has given rise to new breed of manpower sourcing agencies. We often refer to them as body shoppers. These firms provide temporary workforce to those companies in need. Some larger companies also utilize their bench by lending their workforce to other companies on a temporary basis. From the example above, the company would employ 200 people and hire contractors when their workforce need gets escalated. Body shoppers employ contractors and supply them on a need basis. R...