Using
Temporary Help Services
How do you cope with unexpected personnel shortages? Many businesses
are facing this question whether the cause is seasonal peaking, inventory
taking, special projects, several employees on sick leave at the same
time, or an unexpected increase in business.
Many companies are finding a convenient and economical solution to such
problems in the services of temporary personnel firms. This guide explains
these services, points out some of their advantages and outlines some
steps that can be taken to ensure getting the best possible results from
using them.
Almost every business needs extra help at one time or another. A rush
order comes in. The work load suddenly zooms and then drops back to normal
when the rush order is finished. More employees than usual are absent
because of illness or vacations. A special project has to have attention
right away. Seasonal demands must be met or inventories must be taken
without disrupting your usual business. The extra-heavy workload puts a
strain on you, on your employees, and on your budget because of the
overtime it requires.
These temporary shortages of personnel are especially hard for the
owner-manager of the smaller businesses to handle. Their staff is small.
There is little leeway for shifting schedules. Yet they cannot afford to
keep on their payrolls workers who are not needed when the workload is at
a normal level.
The use of temporary personnel is a relatively new approach to solving
many of the personnel problems facing both large and small businesses. You
can hire these extra workers by recruiting them yourself or using a
private employment agency. Or you can call on a temporary personnel
service firm to meet your needs. These specialized firms are usually
equipped to supply you with a wide variety of people, or, in the case of
some of the larger services, handle a complete department including
supervisors and workers.
What Is a Temporary Personnel Service?
A temporary personnel service is not an employment agency. Like many
service firms, it hires people as its own employees and assigns them to
companies requesting assistance. This means that when you use such a
service, you are not hiring an employee; you are buying the use of their
time. The temporary personnel firm is responsible for payroll,
bookkeeping, tax deductions, workers compensation, fringe benefits and all
other similar costs connected with the employee. You are relieved of the
burden of recruiting, interviewing, screening and even testing and
training if these are necessary. Most national temporary personnel
companies also offer performance guarantees and fidelity bonding at no
added cost to their clients. In addition, you are relieved of the need for
government forms and for reporting withholding tax, etc. The temporary
service firm takes these responsibilities.
You may contract for a secretary, a word processing operator, a
bookkeeper, a switchboard operator, a product demonstrator, a packer,
added sales personnel or any of many other types of office, professional,
and industrial workers. You may contract for temporary personnel for a day
or for a much longer period of time.
Whatever help you need, a temporary personnel service will try to
provide the right person for the job. Some temporary personnel companies
specialize in one type of help, such as office workers. Others can supply
a broad range of personnel from unskilled labor to accountants and
engineers.
Some of the other areas where temporary personnel are profitable to use
include a temporary second shift to allow you to make the most use of
expensive equipment investments. Sales blitzes to introduce new products,
special quarterly or year end invoicing problems, special telephone sales
programs or order taking, and seasonal catalog sales are examples. Some
companies contract for teams of temporary people to perform microfilming
of documents, retrieval of information, and maintenance of files.
Temporaries also find wide use at trade shows, product sampling or
demonstrations. National temporary firms can offer the smaller company a
means of handling a national marketing effort that allows them to compete
with larger organizations without excessive permanent overhead.
Why Not Hire Your Own Temporary Personnel?
Hiring temporary workers on your own has several important
disadvantages. For one thing, it may hamper your efforts to attract good
permanent employees. Layoffs when an emergency has passed can lower moral
among the regular employees and, if it happens too often, gives your firm
a reputation for instability.
Another disadvantage is that you may not be able to get help when you
need it. There may be times when the labor market is tight and the skills
you need are not readily available. Also, you may feel that the time you
spend in orienting new people for short-term employment is largely wasted.
The financial aspects of hiring short-term personnel is also of major
importance. On the surface it may appear that using temporary personnel
costs more than hiring additional employees yourself, but there are many
costs that are not usually considered. As an example, mandatory costs,
such as social security, unemployment insurance, workers compensation,
etc., amounts to over 11% of the basic salary. Payment for time not worked
including vacations, holidays and sick days, amounts to almost 9%. Then
there are company paid benefits such as health insurance, pension plans,
discounts and recordkeeping, payroll and other paperwork amounts to
another 6-7%. Total hidden costs are in the neighborhood of 42%.
Advantages of Using a Temporary Services Firm
People supplied by a temporary service firm are quickly available.
Usually they can start the day after the request has been made and, in
some cases, can even be made available the same day. Experienced and well
qualified, they need little, if any, assistance. They usually walk in and
begin functioning right away. Using people from this source, you can
adjust to fast-breaking opportunities or problems without interrupting
your regular production schedule.
Some companies need temporary help every week for a few hours, for
example for payroll computation. Others need temporary workers for full
days at various time - regularly or occasionally.
The hourly rate you pay a temporary service firm is generally higher
than the base hourly or weekly salary you would pay an employee you hired
yourself; however, the cost of getting the work done is less. Using a
temporary services firm does away with many personnel and recordkeeping
operations that are costly and time consuming. The costs of maintaining
records and filing forms for fringe benefits, payroll taxes and
administration are eliminated. So are the costs of advertising, screening
responses, interviewing, testing, checking references and all of the other
functions needed to bring a new employee into the company. In addition,
you save the cost of training, of overtime and idle periods. When you use
a temporary firm you pay for the actual time worked only. You do not have
to pay for lunch hours, vacations, sick days and other areas of
non-productivity. Every company has some department where turnover is
high. By using temporary personnel for such jobs you can improve your
turnover statistics .
When Not to Use a Temporary Service
In considering whether or not to use a temporary service, the
disadvantages to your company as well as the advantages must be
considered. In some cases regular employees who lose overtime pay because
of the temporary workers will become a morale problem. In other cases the
work may be highly specialized and require a period of training, even
though it may be short. This may make the use of temporary personnel less
economical.
Basically, if you need temporary personnel for a period of six months
or more it is advisable to hire a full time employee. There are also cases
where the job may be so complex that it requires a great deal of
supervision for a worker who is unfamiliar with your way of doing things.
In such instances, it may be more economical to pay overtime to a regular
employee than to use a temporary worker.
What Will It Cost?
Charges by temporary service firms vary widely with the type of help
you are contracting for. Obviously, rates will be higher for the more
skilled office or industrial worker than they will be for the less
skilled. Rates vary from city to city also since most temporary service
firms pay their employees the going rate in that particular area for a
given job. They charge you in accordance with this rate plus a basic
markup that covers administrative costs plus a fair profit for the
service.
You pay an hourly rate to the temporary service firm. They, in turn,
pay the employee for the hours worked and take care of payroll taxes,
workmen's compensation and so on.
Most reputable services do not charge you for the hours worked by an
unsatisfactory worker if you let them know promptly that you are
dissatisfied. Generally, you must notify them within four hours after the
employee reports for work, but this provision varies with individual
firms.
What you save by using temporary services depends on your individual
situation. If you are to get the most for your investment, you must
carefully analyze your needs and plan carefully to make the best possible
use of the time and skills of the employee being supplied by the temporary
service firm. The guidelines that follow will be helpful.
How to Select a Temporary Service Firm?
There are a great many temporary service firms throughout the country.
Many are located in large population centers, some operating regionally
and a few nationally. If you are likely to need temporary workers, it is a
good idea to do some exploring in advance.
Check with you local Chamber of Commerce, your attorney, your
accountant, your banker. Look in the yellow pages of the telephone
directory under "Employment, Temporary" or "Employment Contractors -
Temporary Help" or a similar heading.
Try to meet in person with the executive of the firm you select. A
short discussion will help them understand your operation, problems and
needs. You, in turn, can gain an understanding of just what service the
company provides.
You should evaluate the company and its ability to serve you properly
by most of these factors.
Reliability: Is the service a well established company with a
history of success and financial stability? You might want to check their
annual report if its a public company or ask for a certified financial
statement to determine if they are a stable organization.
Recruiting: Competition for skilled, reliable employees in today's
labor market is intense. The firm that has an aggressive recruiting
program is more likely to have the most skilled and reliable employees to
send you.
Testing and evaluating: What method of testing and evaluating
personnel is used to assure that you will receive quality people when
needed? Does the firm check references?
Training Programs: Certain skills are always in short supply
regardless of employment conditions. Does the company train people in
various aspects of office work, such as modern office equipment, word
processing equipment, records management, upgrading of typing and
shorthand skills, etc.? The company should carefully train operators on
the newest types of equipment and in the newest techniques.
Retention Programs: Does the company have a good program to keep
qualified employees for longer periods of time? This can assure you that
you will again get qualified people when you need them in the near future.
Professional Permanent Staff: If you want to deal with
knowledgeable professionals who will know and understand your needs, the
temporary service firm should be staffed by people experienced in the
personnel field.
Knowledge of Your Needs: Does the firm make any effort to
investigate your needs and do they seem to understand what you are
discussing with them as far as needs for personnel?
Prompt Service: The temporary service firm that has a supply of
people available for you on short notice can be most important when you
are in a rush.
Quality Control: Does the company make some effort to check back
with you and determine the quality of the individual as far as they relate
to your work?
Insurance Protection: Does the firm protect your company with ample
insurance coverage including fidelity bonds, workers compensation, and
other problems that might arise?
Guarantee: Does the temporary service firm guarantee your
satisfaction with each and every temporary employee sent to you? Does it
have a refund or guarantee policy? What are its terms?
Plan Early
The key to the successful use of temporary employees is in planning
what type of help you will need, how much and when. The amount of accurate
information you give to the temporary service firm will determine the
efficiency they will have in supplying the correct people for your needs.
To plan properly for the use of a temporary service you must answer
these questions:
- How seasonal is my business?
- Do any of my regular employees have to work overtime to meet peak
workloads? If so, what does the overtime cost?
- If any extensive amount of overtime is needed, will there be a
performance lag and possible morale problems during regular working
hours?
- With better planning could I spread out any of the peak work loads
through the year?
- Are my deliveries made on schedule?
- Do customers often come up with rush jobs?
- If so, can I get them to plan their needs further in advance?
- Are my employees' vacations scheduled not to interfere with peak
seasons?
- What extra help do I need to cope with these problems and reduce
costs?
Plan discussion sessions with key personnel, those involved with
planning day to day operations. Study your production schedule. Note peak
periods. Compare this year with previous years. A pattern will begin to
emerge and you will be able to see where some extra help would have
avoided problems and kept your costs down. Many temporary service firms
will supply trained personnel to advise you in this regard.
What to Do When the Time Comes
If it is decided that you can use temporary help, it is extremely
important that you inform them of exactly what is needed. A good temporary
firm will have detailed description forms about your company and the
positions you are filling with their services so that they can furnish the
proper employee for you. They will ask for information such as the
department they will be working in, the duration of the assignment, your
working hours, your dress code, smoking rules, and other information that
is important for the service to know. Will you be needing a copy typist or
a clerk-typist for example? Does the secretarial position require
shorthand or are there machine transcriptions to do? What type of software
and office equipment are involved? Are there any special knowledges or
skills needed? You will find that by informing the service of your exact
needs you will have qualified people furnished to you and will not be
paying for skills that are not needed for your individual assignment. Most
of the larger temporary service firms have special advisors who will work
with you and help you plan ahead. In summary:
Estimate your needs
Decide what the specific requirements of the job are. Exactly what
talents do you need? How long will you need the employee?
Don't ask for someone with higher qualifications than the work calls
for or the cost will be unnecessarily high. On the other hand, don't try
to economize by getting under-qualified help and then expecting the worker
to carry out tasks that he or she isn't prepared to handle.
Give the temporary-help service full information
If the temporary personnel firm is to help you get the best results at
the lowest possible cost, you must give its people detailed information
about the work to be done. Tell them the nature of your business, the
working hours, when and how long you'll need help, the skills required,
the types of equipment to be operated. You may want to send samples of the
work to be done, if it is feasible. Be sure to give the exact location of
your business, transportation available, parking information, and the name
and title of the person to whom the temporary employee is to report.
Preparing for the Temporary Employee
A few steps taken before the temporary employee reports for work will
do much to make the association a success, both for the employee and for
you.
ONE - Arrange for supervision
Appoint one of your permanent employees to supervise the temporary
employee and check on the progress of the work from time to time. Be sure
this supervisor understands the job to be done and just what his or her
own responsibility is.
TWO - Tell your permanent employees
It's a good idea to let your staff know that you are taking on extra
help and that it will be temporary. Explain why the extra help is needed
and ask them to cooperate with the new employee in any way possible.
THREE - Prepare the physical facilities
Have everything ready before the temporary worker arrives. The work to
be done should be organized and laid out so that the employee can begin
producing with a minimum of time spent in adjusting to the job and the
surrounding. See that the materials needed are available and the equipment
is in place and in good working order.
FOUR - Plan the work load
Don't set up schedules that are impossible to complete within the time
you allot. Try to stay within the time limits you gave the temporary-help
service, but plan to extend the time period, if necessary, rather than
crowd the employee. Rushing and overwork can result in costly mistakes.
FIVE - Prepare detailed instructions
Describe your type of business, the products you manufacture or the
services you offer. Be specific in outlining the procedures your company
follows. Most employees of temporary-help services adjust quickly to the
methods of an individual firm because of their varied experience.
The Work Begins
You've made all the preparations. The employee has arrived and is ready
to start work. What now? How do you get a temporary worker started? What
should you expect? What if you're not satisfied?
This is the crucial stage of the relation between your company and the
temporary employee. Get off to a good start and the rest will go smoothly.
ONE - Help the employee settle in
Receive the temporary employee as you would receive one hired on a
permanent basis. Make the person feel like a member of your team. Explain
where to hang coats, the location of the washroom, the lunch hour, coffee
breaks, and so on.
Introduce the temporary employee to the permanent employee who will
supervise the work.
Introduce the temporary employee also to permanent employees in the
same department. Explain that "Ms. Jones will be here for a few days to
help out". Or, "Mr. Smith will be here this week to help get out the rush
job."
TWO - Explain the job
Go over the work assignment and the instructions. Explain company
routines. Make your directions as simple as possible and provide samples
of the work to be done. If the work is complex, explain it clearly and
make certain that your explanation is understood. Assure the temporary
employee of your staff's cooperation and willingness to help, and show
your own interest and concern.
THREE - Don't expect the impossible
How much can you expect from a temporary employee? Fully as much as you
contracted for with the service firm. Most employees of temporary
personnel firms perform well. They are experienced and versatile. Because
they have worked for a variety of businesses, they have learned to adapt
quickly to a new situation, and they know that future assignments depend
on their doing satisfactory work.
But don't expect the impossible. Don't overload temporary employees -
make a slight allowance for the fact that they are not familiar with your
business and its operations. Check the work occasionally, ask for any
questions, never leave the employee feeling stranded or left out. At the
same time, don't make them nervous by hovering over them. And don't push
or prod too much.
Judging the Overall Results
Within a few hours after the temporary worker has reported, you will be
able to judge how the work is going. If you are not satisfied, you should
not hesitate to call the temporary service firm and inform them of the
problems. Most reliable temporary service firms will call you to see how
the person is working out and take corrective action if required.
A good temporary service firm will ask you to evaluate the employee's
work at the end of the assignment.
You have a right to expect a conscientious, interested employee who
will put in a full day's work.
You should also judge the use of temporary services in your business
operation. To do this, you should keep these points in mind to help you
plan for future needs:
Did the productivity of the employee justify the cost? Was the work
completed accurately and effectively?
Did it benefit the impact on your overall operations? Were there any
disadvantages?
After you have evaluated the above points, you can consult with your
key people and the temporary service firm to evaluate your needs for the
future. You may be able to work out a program for hiring temporary
personnel throughout the year so that you will be fully covered for work
loads at all times.
Food For Thought
Who talks you out of more
things than anyone else? Your spouse? Your parents? Your boss? Your
lawyer? If you're like most people, the answer probably is: yourself.
You have an "inner voice" that has opinions on everything you do. That
inner voice has its own perspective on you as a person, and is acutely
aware of your limitations and shortcomings. Every time you attempt to
step out of your box, to try something new and challenging, that inner
voice starts in on you. "You can never do that," it says.
Well, that inner voice is wrong. You can do it if you set your mind to
it, no matter what has happened in the past. In fact, your biggest
obstacle is convincing yourself that you can. The first step in doing
that is to acknowledge that the "inner voice" exists, and then take
steps to counteract it.
The inner voice will always be there. You can't get rid of it. But you
can keep it from dominating your thoughts and actions by supplying
yourself with plenty of positive input.
Get yourself around positive, future-oriented people. Read books,
listen to tapes, talk back to the voice and say, "Yes I can!" Dwell on
the possibilities, not the risks. Model the behavior of successful
people. Take action toward your goals. Remind yourself of your
accomplishments and of the challenges you've overcome in the past.
Write down your goals and review them at least once a day. Find your
purpose in life keep yourself focused on it.
You can accomplish great things if you'll just let yourself do it.
Today is the first day of spring. It doesn't seem possible, but 1996
is almost 25% over! Are you 25% of the way to the goals you set for
yourself this year? If not, then the first day of Spring should serve
as a reminder to "spring" into action and make 1996 a memorable year.
(Note to our readers in Australia, South Africa and other places to
the south. Please forgive me for today's blatantly "hemispherist"
column, but I have a touch of spring fever! You may want to save this
and read it in September.)
Springtime is a time of renewal. Nature puts many things on hold for
the winter. Trees lose their leaves, the grass turns brown, and many
animals (including humans) tend to hibernate. Here in North America,
we've had a particularly cold winter and I, for one, am ready for
warmer weather.
We should take a lesson from nature. Why do the trees lose their
leaves? So they can get new ones, of course! A whole new set of leaves
for a new season of growth. Maybe that's why trees stick around for so
long.
What can you do to renew yourself this Spring? What "leaves" can you
move out of the way to make room for something new and productive?
Perhaps you've gotten into a rut. You do the same thing every day,
talk to the same people, eat the same lunch, drive the same way to
work, use the same old set of assumptions. Imagine what would happen
if the trees never lost their old leaves and grew new ones. The leaves
would get frail, and torn, and limp, and completely useless.
Nature is constantly renewing itself, pruning away what doesn't work
and making room for new growth. What's not working in your life? What
could you do if you were free of your old assumptions and ineffective
habits?
It is a shock for a tree to lose it's leaves in the fall. And it is an
effort for the tree to grow a new set in the spring. But it is well
worth the trauma and the effort. That annual act of renewal enables a
tiny tree to reach the sky.
At this time when nature is renewing itself, perhaps you should join
in the fun and find your own way to have a productive growing season.
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