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Sometimes answers come from the oddest places—Bonnie Bair found hers at a funeral. The president of a California consulting company, Bair knew that a decade of hard work had made her a dangerously burned-out entrepreneur. "Although we were succeeding as a company, I personally didn’t know if I could keep it all going—or if I even wanted to," she recalls. "I needed a break, some time to recharge my batteries. I decided that I needed another me, a temporary CEO."

After a deliberate search yielded nothing, Bair was lost. Then she met Alison Buttenheim at a colleague’s funeral. Buttenheim had a Stanford MBA specializing in management systems. She and Bair, an MBA graduate from UCLA, were a perfect match. For the next six weeks, Buttenheim took over the firm, managing the day-to-day operations while Bair enjoyed a much-needed retreat. Upon returning to work, and feeling fully energized again, Bair followed many of Buttenheim’s recommendations, one of which was adding a new director of operations to alleviate her workload.

Maybe you only need help for a certain project, like installing a new computer system or promoting a special event. Perhaps you are short-handed during your industry’s busiest season, or want to experiment before making a permanent hiring decision: Do we really need an in-house designer? Is Bud the right person to handle data entry and marketing research? Or maybe, in keeping with the ever-growing trend of the 1990s, you need to increase staff but can’t afford to pay for employee benefits. While most small business owners can’t count on finding staffing help at funerals or dinner parties, there are numerous other options at your disposal.

The Temp Landscape: No End in Sight

Temporary workers could step in to save the day under any of these scenarios. In 1996, temporary help services reached an all-time high of $43.6 billion in revenue, up from $31.5 billion in 1995. Many experts attribute this growth to the corporate restructuring and layoffs that have flooded the market with experienced managers. Thousands of these business people are now setting up shop as entrepreneurs and/or working through the temporary staffing services that abound today. Small businesses using temporary employees can minimize fixed costs, maximize profitability and help maintain flexibility.

According to Bruce Steinberg, spokesman of The National Association of Temporary and Staffing Services, the temporary employee market has increased steadily since 1980 and grown 118 percent since 1990. Analysts predict that the demand for temporary workers will continue to flourish well into the next millennium. "America’s strong economy is booming, in part, because temps allow companies to be more productive," Steinberg asserts. "You can bring in extra people just to meet current market needs. There is no surplus production, and employment costs are more closely linked to actual demand."

Unfortunately, that dependence on market fluctuations has caused much anxiety among the workforce. "Today’s fast-paced economy has made the 25-year employee almost obsolete," adds Steinberg. "Job security is being replaced with employment continuity. If you have the right skills and good relationships with staffing services, you’ll always have a job."

Today’s 8,000 staffing services are structured in several ways. Employee leasing companies are among the most useful to small businesses. They serve as professional employers for temporary workers, withholding and paying taxes and granting some benefits. Temporary staffing services hire their own employees to support outside companies, who are then supervised by the client. In addition, there are staffing providers who offer ongoing support for a specific operation; managed service providers who supply and supervise employees for a specific function, such as shipping or data processing; and payroll services, which manage customer-recruited employees.

"Because of their 50 percent markup for workers, most small businesses should use big temp agencies with care–they are a convenience, but a costly one," cautions Diane Thrailkill, author of The Executive Temp. "On the other hand, when your back is against the wall and you only need help for a day or two, an established, full-service staffing service is your best shot at finding the exact skills you need in the shortest amount of time."

However, for a few pennies more you may find highly skilled workers through a smaller "boutique" company that specializes in a particular profession and has come to know needs like yours. As Birl Martin, director of Bankers On Call Inc. in Los Angeles, explains, "We’re experts in the financial industry and know exactly what it takes to be a controller or a credit analyst. There’s no guesswork involved here, as there may be with a general agency that wears many hats. Nor is there any margin for error. We’ll only send you highly qualified workers."

Both large and small staffing services will work with your firm to identify the skills needed and to screen available applicants. That process includes skills testing, reference checks and identifying the particular responsibilities of the position. If the candidate you receive does not work, the agency is obligated to replace that person immediately. Keep in mind that an effective match is possible only if you have clearly pinpointed specific needs.

Most often, small operations seek temporaries to meet high customer demand during the market’s busiest seasons. For those companies whose market fluctuates frequently, accordion management or the hiring of temporary workers to expand a workforce is painless and profitable.

Some small businesses use clever tactics when it comes to meeting their customers’ seasonal demands.

- Each summer, Ibiley School Uniforms of Miami (see sidebar) recruits students and off-duty school district personnel to handle the orders that come in July and August and constitute most of the company’s annual sales.

- Rhino Foods Inc. of Burlington, Vermont established an employee-exchange program that places workers in other like-minded companies during slowdowns.

Do Your Own Outsourcing

Thrailkill suggests that, with more lead time and a little legwork, small firms can successfully acquire quality temporary help on their own. Think about your ideal employee: a self-starter, dependable and efficient, who works well with your particular management style. Be very clear about the temporary workers’ necessary skills and range of duties; be realistic about task duration and salary.

Once you’ve developed a pragmatic job description, try a few new recruiting strategies. Rather than running ads in your biggest daily newspaper, check the "Situations Wanted" section for hungry talent. Advertise for experienced help in specialty journals such as legal newspapers and trade association newsletters. For less specialized temporaries, small businesses will find entry-level help through career placement centers at local colleges. Ads in theatrical magazines will draw moonlighting actors and artists.

The Optimal Temp

Getting the best on-the-job performance from your temporary workers means treating them like full-time, permanent employees. Offer them the same professional training, bonuses or incentives and the opportunity for company "perks." Include them in your company functions and celebrations.

"That way, the temp is participating in your culture, and you can judge their work with complete equity," advises one Minnesota marketing whiz who has hired two-thirds of his 80-member staff from the temp pool. "At the same time, with no financial investment, you’re making a positive statement about their value to you."

Some temps love the flexibility and diversity of the nomadic lifestyle. It can even be more lucrative. The Federal Reserve Bank of Chicago found that higher skilled white collar temps earn slightly more than their permanent counterparts. Yet the Bureau of Labor Statistics reports that 60 percent of the temporary workforce wants full-time positions. For both worker and employer, temping is a great auditioning tool. In a survey by the National Association of Temporary and Staffing Services, 75 percent of all workers said they temped to find full-time positions, and 30 percent received permanent offers.

As long as this lean and mean era of business continues, there will be an ample supply of talented temporaries. Look carefully as you seek their services. You cannot always predict where that relationship will go. While it may only last until the next paycheck, you might also find a partner to take your company to higher ground.

 

Commitment to Community Gives More than Temporary Success

While a number of agencies specialize in supplying temporary employees, some companies find their temps through less traditional means. Eduardo Barea, president of Ibiley School Uniforms in Miami and 1997 U.S. Small Business Administration Florida Small Business Person, attributes at least part of his success to a worker pool generated by the community. During busy seasons, Barea supplements his workforce with students and off-duty school personnel to handle orders.

Barea’s commitment to the community is widespread and he has definitely made friends among the parents of Miami school children. When the Dade County School District decided to require uniforms, Barea offered a deal that the district could not refuse. For every 20 sets of uniforms sold, Ibiley gives a free set to help low-income students, asking only that the parents put in five hours of community service. To date, Ibiley has donated more than 9,000 uniforms to children in need.

As if that were not enough, Barea has sought to promote the uniforms by attending PTA meetings to educate parents about their benefits. He has also organized numerous pizza parties at school cafeterias to give the uniform concept community exposure and to help school principals raise awareness among the families. These ventures resulted in 42 county school contracts with Ibiley, raising revenues to $3.1 million. In 1996, the number of schools that adopted mandatory uniforms more than doubled.

Barea is not alone in this venture. He calls his wife, Lely, a cornerstone of Ibiley’s success. "My wife is the backbone of this business. She makes sure everything happens." It was Lely’s parents’ company, Ibiley Manufacturing, that gave birth to Ibiley School Uniforms and the couple’s relationship. Ibiley School Uniforms is not simply a model of entrepreneurial success, it is a model of commitment to the people it serves.

 

Banking to a Different Beat

"‘Boutique agency’ describes us perfectly," declares Birl Martin, director of Bankers on Call Inc., which he founded four years ago in Los Angeles. "When you’re looking for a credit analyst, we know exactly what experience and technical skills are needed. And our clients understand the effort it takes to get the job done. That’s why they keep coming back."

Bankers on Call specializes in recruiting interim professionals for the banking and financial industries—including mortgage banks, credit unions and trust companies—throughout the western United States. Seeking to fill approximately 25 to 30 middle to upper management positions per month, Martin is confident of his ability to gain immediate access to the best candidates available.

That assurance comes from Bankers on Call’s close relationship with sister company Russell Stevens, a financial executive placement firm. "Unlike general service agencies, we know who we’re dealing with and have the experience to make evaluations," Martin notes. "We’re there to save our clients’ time and produce necessary results. Our temps do not require any training."

Bank audits and first quarter bank business make his phone ring. "We also assist companies contemplating a merger or acquisition," explains Martin. He foresees temp services as an ongoing trend. "Right now in the Midwest, a severe shortage of bankers exists. It’s starting to hit us out here, too."


Excerpted with permission from Small Business Success, Volume XI, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration.