Here is some more reading about the temp staffing industry:
Temporary firms explore new ground
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Jim Witters
emporary employment agencies are beginning to move into their customers'
offices, and at least one local executive believes that they eventually
will replace human resources departments in many companies, large and
small.
"We can accomplish the same thing at less cost (than in-house human
resources departments)," said Paula Whipple, chief executive officer at
Jim King Cos., which recently was acquired by The Wackenhut Corp. "We
can save companies the cost of recruiting. And through us, the cost of
benefits is less."
Jim King Cos., Kelly Services and AccuStaff Inc. are three of the larger
agencies that offer on-site staffing arrangements for companies in the
Jacksonville area. The three combined provide more than 2,000 workers a
day to their local clients.
Traditional temp services fill employers' needs from the temp service's
home office, dispatching workers to companies across the city. With
on-site staffing, the temp agency and the employer become
"co-employers," in a sense, and the agency places managers in an office
at the employer's business.
Kelly Services has landed the statewide on-site account for Barnett
Banks, supplying as many as 550 workers a day. At Barnett's Jacksonville
complex on Southside Boulevard, 250 to 300 temps a day perform office
and clerical tasks, said Dan Costello, Kelly's district manager.
"This gives us a chance to get to know the customer better and it is a
cost savings for the company," Costello said.
Instead of calling several staffing agencies in search of needed
workers, Barnett and other on-site clients can use one agency. Costello
said Barnett used as many as 70 agencies across the state before
deciding on an on-site arrangement several years ago.
That means Barnett was receiving and processing 70 invoices a month for
temp services. Now the company receives one. And Kelly uses electronic
billing and fund transfers to make the payment process easier and more
efficient, Costello said.
And when Kelly cannot supply all the workers Barnett needs, Kelly's
on-site manager uses other local temp agencies to fill the order.
"We are not allowed to say, 'We can't do that,' " Costello said. "We
must get the order filled."
Figures from the National Association of Temporary Staffing Services
show temps have captured nearly 2 percent of the total employment
market. The number of temps has risen from 1.2 million in 1990 to more
than 2.3 million in 1996.
And temp agency executives say a significant amount of that growth has
come in the on-site staffing arrangements, which started to gain
popularity within the last five years.
"This is a growing part of the business," Jim King's Whipple said. "Big
businesses are being pushed into finding less expensive ways to do
business, and employee payroll is a very high cost for them."
Nannette Reeves, director of on-site staffing for AccuStaff, said
companies that traditionally have shied away from temps -- especially
telecommunications firms -- are coming into the fold.
AccuStaff provides trained customer service and telemarketer personnel
to American Transtech Inc., a subsidiary of AT&T.
The company entered the on-site staffing market about five years ago and
supplies several local employers with an average of 111 workers a day
each, Reeves said.
"If done properly, this can be a win-win-win situation for the employer,
the associate (worker) and the staffing company," Reeves said.
Costello said on-site staffing accounts for about 20 percent of Kelly's
local business.
Most types of business can benefit from on-site staffing arrangements,
but temp executives said companies must use a minimum of 50 temps a day
to realize a savings and make the venture worthwhile for the temp
agency.
Whipple said Jim King Cos. places as few as 25 workers and as many as
800 at local sites, most in manufacturing and distribution companies.
The company has about 1,450 workers in on-site staffing arrangements.
The Kelly staffers at Barnett fill in for permanent workers on vacation,
handle special projects or meet seasonal needs, Costello said. The
average length of an assignment there is three weeks.
Whipple said on-site staffing reduces the cost of employee benefits,
because the temp agencies have huge pools of workers and can negotiate
better rates.
"The temps are employees of Jim King Cos.," Whipple said. "They have an
HMO, dental coverage, a 401(k) plan, vacations, holiday pay and sick
leave. But they come to us instead of the client for those benefits."
Employees have the security of full-time status and a benefits package.
Clients realized a cost savings compared to hiring permanent employees
and having to pay benefits. And the temp agencies make a profit by
brokering the arrangement.
c 1997, Jacksonville Business Journal |
