Contract Employees

A company was facing a tough market and for last three quarters the profits were not showing any improvement. The company decided to strategically cut costs across the organization.

Manpower was identified as the main cost center and the think tanks of the organization came up with a solution to decrease manpower cost. They decide to outsource their staffing requirement to an external vendor. For a start they would keep 20% of their staff on contractual basis and gradually increase the percentage. This decision would reduce many manpower overheads for the organization and save time and human resource required to manage the manpower related tasks.

The organization was already using KensiumHR modules – Recruitment, Training Management, Performance Management, and Employee Management. Therefore it was an easy call for the management to add on KensiumHR’s Contractor Management module.

The KensiumHR Contractor Module enabled the organization to:

Contract Employee Management

  • Manage different contractors by creating a separate account for each contractor
  • Ensure the contract schedule is maintained by setting up the validity period for the contract
  • Evaluate the cost benefit analysis by keeping track of the Contract Value for each contractor
  • Integrate contract employees into the organization by specifying policies applicable to them  


  • Assist the reporting managers for keeping track of the contract employee’s non-attendance, leave applications, or any deviations from the norm
  • Provide vendors access to various reports to manage and track their employees remotely

Contract Management

  • Maintain all records pertaining to the employment of the contract employee
  • Plan manpower ratios effectively by easily converting the contract employee status to regular employee
  • Balance the manpower planning by keeping the concerned officers informed in advance about the impending contract expiration
  • Secure the company data from previous vendors by suspending all access to them automatically on expiration of the contract

The KensiumHR Contractor Module provided the much need tool for the organization to help reduce manpower management cost and have a flexible manpower pool which can be easily tailored as per the changes in market whether it demands further cost reduction or increase in manpower. This module enabled the organization to easily establish the new manpower model and seamlessly integrate the same with the existing system. It also allowed the organization to effectively coordinate with the vendors and ensure smooth execution of the employee contracts.

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We are a fast growing full service information technology services providers with a deep knowledge of business functions in a variety of industries.This enables us to deliver innovative technology based solutions to meet our clients business needs.

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