| Temp agencies have become indispensable partners | | | | a flexible workforce to match it. Of all the types of |
| for many companies. No longer are temps (or | | | | temporary staffing this is the one that is truly strategic. |
| contingent workers as they are sometimes called) a | | | | The Most Important Use of Temps: Flexible Staffing |
| minor expense; they are a big investment and a critical | | | | When demand dips below the water level staff is idle |
| aspect of keeping jobs filled. But managers ought to | | | | and the company is paying unnecessary salaries. |
| understand that good temp agencies do much more | | | | When demand juts above the water line the staff |
| than find "bodies" at short notice. The best agencies | | | | cannot handle the workload resulting in overtime and |
| can show you how to use flexible staffing to improve | | | | backlogs. |
| productivity. | | | | Drake's approach is to analyse the optimal level of |
| The Dramatic Rise of the Temp Agency | | | | permanent staffing then put in a plan for handling |
| Temp agencies have become so common that we | | | | peaks in demand with qualified temporary staff. While |
| forget that, they were a relatively recent invention. | | | | it takes some expertise to do, this planning is a |
| Back in the 1950s Bill Pollock and Jim Shore were both | | | | reasonably straightforward exercise--one Drake has |
| competitors selling business equipment to improve | | | | been executing successfully for many years. The |
| productivity. They both noticed that although demand | | | | results are both significant savings on staffing costs |
| went up and down, staff levels remained constant. It | | | | and improved ability to deliver to customers during |
| dawned on them that there was a need for | | | | peaks in demand. Unlike some other temp agencies, |
| temporary workers so that the level of staff could | | | | Drake has always been in the productivity business, |
| fluctuate with demand. They formed Drake Personnel | | | | not just the staffing business. |
| (now Drake International) and brought a new industry | | | | Mistakes to Avoid |
| to life. | | | | If there is one place where some companies have |
| The temp agency is an essential service because | | | | gone astray in working with their temp agency it is that |
| businesses need flexibility. They need to be able to fill | | | | they stopped seeing it as "staffing" and started seeing |
| positions at short notice, for short periods of time. The | | | | it as "purchasing." As noted in this article, the rise of |
| flexibility in staffing that temporary workers give a | | | | temporary staffing meant that temps have gone from |
| company has proven to be so valuable that the | | | | an insignificant cost to a large annual expenditure. |
| number of temps has continued to rise over the years. | | | | Furthermore, this expenditure was uncontrolled in the |
| We used to think that temporary staffing only made | | | | sense that all sorts of managers would be negotiating |
| sense for relatively low-skill jobs but now companies | | | | their own deals with different temp agencies. |
| have discovered that there can be value in bringing in | | | | Organizations responded quite reasonably in trying to |
| interim executives right up to the level of CEO. (In fact, | | | | get control of this by bringing the purchasing or |
| there is even a service, Drake's Prime50, focusing | | | | procurement function - that has expertise in cost |
| specifically on the placement of seasoned executives | | | | control - into the picture. |
| in interim assignments.) | | | | However, this can go off the rails if the procurement |
| In using temp agencies companies have stumbled upon | | | | department focuses only on cost, not on quality. A |
| some unexpected benefits. One is guaranteed | | | | company would never hire someone on the basis of |
| performance. If you bring in a temporary employee | | | | which applicant was willing to work for the least |
| and they are not working to your standard, a simple | | | | money; the quality of the candidate is a prime |
| phone call to the temp agency is all it takes to have | | | | consideration. However, when a procurement |
| them replaced. The other unexpected benefit is the | | | | department is being driven solely by targets to reduce |
| temp-to-perm phenomenon. Hiring workers as | | | | costs the easiest way to get there is to be inattentive |
| temporaries before making a decision about offering | | | | to quality. |
| them a permanent job is undoubtedly the single most | | | | The solution to this is reasonably straightforward. The |
| reliable selection method. It gives the company a | | | | mission of the procurement department must be to |
| chance to "test drive" the worker and the worker a | | | | partner with the temp agency to get top quality temp |
| chance to see what it is really like working for the | | | | workers at a reasonable cost. Hiring managers should |
| company. The U.S. National Association of Temporary | | | | be periodically surveyed to ensure the temp agency is |
| Services estimates that one out of three temporary | | | | providing the quality of staff it needs. |
| assignments leads to full-time work. | | | | Return on Investment |
| Clearing Confusion About the Types of Temps | | | | Businesses rarely do any kind of ROI around hiring |
| Frequently the labels "temporary help," "contingency | | | | temporary help, it's simply a matter of work needing to |
| staffing," and "flexible staffing," are used | | | | be done and getting help quickly. However, for flexible |
| interchangeably by the general business community. | | | | staffing it is possible to do a formal ROI, and the |
| However, temp agencies understand that these three | | | | results can be impressive. |
| types of workers are used quite differently. | | | | If you are able to reduce your permanent staffing in a |
| Temporary help is a concept whereby companies | | | | unit from 100 to 75 then it is easy to calculate the |
| bring in someone, usually for lower skilled jobs, to cover | | | | savings. Add to this the cost of overtime caused by |
| for a vacation, maternity leave or help for some | | | | peaks in demand - not to mention the loss of |
| short-term project. | | | | customers due to backlogs - and you have all the |
| Contingent staffing is a much broader concept including | | | | information you need for an ROI calculation. |
| all sorts of contractors, consultants and free agents, | | | | The returns are usually so large that it's not necessary |
| often for reasonably long periods of times. The driving | | | | to spend time sweating over specific estimates - even |
| business reason is still flexibility: companies want to be | | | | the most pessimistic estimates show flexible staffing |
| able to bring in the talent they need at the moment | | | | will provide a solid return. |
| without making a long-term commitment. | | | | Don't think of your temp agency as simply someplace |
| Flexible staffing is rooted in the original insight of Pollock | | | | you call to fill a short-term vacancy. Think of it as a |
| and Shore that big productivity gains would arise by | | | | service provider who can regularly source top talent |
| analysing the fluctuating levels of demand and creating | | | | for you and permanently reduce your costs. |