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The Honolulu Advertiser
Posted on: Monday, October 25, 2004

Businesses use temp jobs as tryouts

By Erika D. Smith
Knight Ridder News Service

If you think temporary employment agencies are good only for replacing your flu-stricken secretary, think again.

In fact, think "try it before you buy it."

Temp agencies provide a way to hire employees in a variety of occupations quickly and without a long-term commitment. They are a testing ground and a training ground. But most importantly, using temp agencies can help an employer save money.

"We do all the groundwork," explained Sherri Witte, chief executive and co-owner of Superior Staffing in Akron, Ohio.

Hiring an employee isn't cheap, especially up front.

There's the cost of advertising the open position and the time spent on interviews. Then there are the background checks, any drug tests and the cost of putting an employee on your company's payroll.

And once all that is done, there's no guarantee that employee will be loyal and productive, or even mesh with your company's culture.

Employers can minimize such risks by taking on a temp.

As with many agencies, when a person walks into Superior Staffing, he is required to fill out an application and submit to various exams to gauge his skills. The agency also conducts background checks and drug tests on request.

Every applicant is assigned to a placement counselor who specializes in a specific industry, such as information technology or nursing. "Their job is to find a company where that person fits," Witte said.

To put someone to work, employers must enter into a contract with the temp agency. At Superior Staffing, they agree to hire people for 480 hours full-time or 300 hours part-time.

Companies pay a fee to the temp agency, which pays the employee's salary.

Witte said she couldn't cite a price range, because every company's overhead is different. For instance, it might cost more to hire an IT specialist than it would a mailroom clerk.

"But when you think about the cost of hiring," she said, "it's almost always cheaper."

Someone working through a temp agency will remain that agency's employee until you hire him or her. So both parties have the option of pulling out early.

Witte said about 80 percent of Superior Staffing's corporate clients end up hiring a temp permanently, while 20 percent are just interested in interim workers. That's a switch from two decades ago, and it's an industrywide trend as companies tiptoe back into the job market.

"We always see it first," Witte said of any economic turnaround.

The concept of impermanent work is quite popular in Europe.

The reason is simple:

"It's very much harder in Europe to dismiss someone once you've hired them full-time," Hisrich said. "You're very careful who you hire."

Even if they're not hired permanently, the process can work in the temporary employee's favor.

It's easy to gain a lot of exposure and experience working for a temp agency, said Kathryn Musholt, a career counselor at KSM Careers & Consulting in Akron.

"They can work at a variety of places without a commitment to one," she said. "And if the company likes them, they can ask them to stay. It can be a win-win situation for both sides."

Other benefits include a similar pay scale to that of permanent employees, flexible hours and free training. But there are drawbacks, too, including a lack of 401(k) plans and benefits.

Often though, neither becomes an issue, because employees typically find a place they like and stay there.

"Some people stay with temp agencies for years," Musholt said. "There's nothing wrong with that."