Increase in Temp Workforce Follows The Economy

Following the economy
Volatile market conditions require companies to be more agile and responsive to changing circumstances, and supplementing work teams with interim workers may allow them to adjust staffing levels quickly and cost-effectively according to demand.
Tom Smith, production manager at Vancouver-based Kaso Plastics, said the custom plastic injection molding company budgets for temporary workers and typically supplements about 8 percent of its production staff with them.
“We use them for the jumps up and down in production mostly,” he said.
Currently, 11 out of the production area’s 99 employees are temporary – higher than usual, Smith said.
Kaso primarily uses temps for entry-level positions, but with the right skill sets, they may have an opportunity to move up in the company.
The use of temporary workers changes with the labor market, said Lisa Nisenfeld, executive director of the Southwest Washington Workforce Development Council.
When there’s abundant skilled labor, companies often use staffing services as their front door and can give workers a try.
When the labor market gets tighter, companies have to compete for workers, which often means offering a direct job, Nisenfeld said. Then, staffing services shift to become another source for potential workers because they have connections with a large number of people.
In times of economic downturn, companies may find benefit in relying on temporary workers.
“Temporary service allows companies to get someone in there, get a project done and not have to worry about firing or unemployment costs,” said Allison Beam, staffing consultant for Boly Welch, a staffing service that serves Vancouver and Portland.
By using temporary workers, employers don’t have to pay permanent salaries or benefits. The practice may even boost productivity and retention rates because it eases the work burden on full-time staff, the national study indicates.
Kelly Services Inc.’s Vancouver branch is placing about 150 people a week – up about 33 percent over last year, said Branch Manager Susan Schneiderman.
“I think businesses have been in the throws of growth but aren’t sure they can sustain the growth,” she said.
Companies are using temporary assignments as a way to evaluate prospective full-time employees, and more and more are using them on a project basis.
“The value of employment services is being recognized,” Schneiderman said. “We no longer have to introduce a company to the idea of a contingent workforce.”
Smith said using a staffing service saves him from worrying about staffing so much.
“Through the ups and downs, I can add and reduce the temporary staff quickly,” he said. “To be honest, we can weed through them pretty easily. There aren’t a lot of ties to a temp, and I just call the staffing service and say this person’s not working out.”
Companies are increasingly worried about whether a worker fits into a work environment, not only about whether a worker has the ability to do the job, Beam said.
On the flip side, workers are also feeling out the company.
Gen X-ers and Gen Y-ers are demanding job satisfaction, Schneiderman said.
Many temporary workers are between long-term jobs and temping is a source of supplemental income, but some are using it for support until they find the right thing, Nisenfeld said.
“People are more concerned about the fit and some are willing to wait for the right job,” she said. “It’s not just about salary and skills anymore.”