Hiring temps enhances bottom line: temporary agencies provide lasting advantages.

• Author: Myers, Deborah J.
• Position: Industry Overview

During tough and uncertain economic times, it may seem counterproductive to pay for yet another service. When you're trying to stay in the black, you try to decrease overhead. However, hiring employees through a temporary service may provide big savings to your company.

When you consider the cost of replacing an employee, including recruiting, screening, interviewing and training, a temporary agency can reduce your administrative overhead.

"All the paperwork for employment goes through us," said Cindy Schebler, president of Personnel Plus in Anchorage. "It's a lot less work for the employer to go through an agency."

Especially for skilled positions, such as in the health care field, temp agencies can save you a lot of time.

"RNs have extensive paperwork to go through," said Diane Bachman, office manager at Alaska Executive Search in Anchorage. "We certify licenses and all certifications."

Temporary agencies also will provide criminal background checks, drug and alcohol tests and reference checks.

"We can provide employees ready to go," said Tracy Hazen, Alaska manager for Kelly Services Anchorage. "It offers employers a flexible work force."

Temporary agencies handle all of the administrative aspects of the temporary employee because, legally, the temp worker is not your employee but is the staffing agency's employee.

"We take care of payroll and workers' compensation insurance because we are the employer," Hazen said. "We are responsible for that."

Because temp agencies are the actual employers, they also handle any legal problems that may arise if employees become disgruntled.

"With all the wrongful termination suits and workers' compensation problems, we take the risk for the (company)," said Jason LeBoeuf, branch manager for Labor Ready in Anchorage.

LeBoeuf is referring to employees who work for a short period of time and then feign injury to collect workers' compensation.

"We can help alleviate the problems of fraudulent employees," he added.

Temp agencies working with small companies may be able to obtain bigger savings on workers' compensation insurance because of volume. The temp agency may employ many more people and thereby get a price break on the insurance premiums.

For mid-sized companies, the number of employees on staff can also make a difference. Temp agencies also can help if your company is close to having enough employees to raise your workers' compensation insurance rates. By using a handful of temps, you can save on...