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Temporary Services Industry Growing At Pace With Iowa's Economy

Even with Golden Circle employment levels at record lows, the temporary services industry is keeping pace with the increasing demands of client companies for workers. Doug Duke, Iowa Market Manager for Pro Staff, with offices in both West Des Moines and Des Moines, said a commitment to quality and service to both the client company and temporary employee are keys to the industry's success.

"The strong economy has provided diversified opportunities for employment along with a growing need by both employers and employees for flexible schedules, good wages, and solid benefit packages. That all attracts quality temporaries,"


He said the strong economy actually benefits firms such as Pro Staff because client companies have a greater challenge in hiring qualified employees. For example, in 1999, Pro Staff processed more than 80,000 W2s for its organization. He also said Pro Staff has increased at or above the national average for the last 17 years.

"While Des Moines is one of the hubs for the insurance industry, the increase in call centers has been the most visible changes impacting our industry in Des Moines,"
Duke said. "These call centers include insurance, credit card, products services, dot.coms, etc."

Pro Staff is a broad-based agency that provides employees for areas such as light industrial, office and administrative, customer service, accounting, finance, mortgage services, IT, and engineering.

"Due to low unemployment and a high demand for employees, candidates have raised their employment expectations beyond that of just solid pay for performance," Duke said. "Work environment, dress code, flex schedules, and other value-added incentives have become increasingly important in determining their employment choices."

The emergence of strong benefits packages is another draw for the industry, he said, adding that Pro Staff was the very first staffing service to offer it's contingent (temporary) workforce benefits.

"Vacation pay, holiday pay, medical insurance, 401K plans, scholarship programs and referral bonuses have all become common. With the exception of health insurance, most of those benefits become eligible, for their employees, when they reach 1000 - 1200 hours. A variety of health insurance options are available immediately upon placement."

Duke said his firm also provides "instructor lead training" -- a program that assists candidates in improving their skills in an effort to place them on a desired career path.

With a corporate emphasis on temporary-to-hire for Pro Staff, Duke said the average temporary employment for his firm is 60 - 120 days before they are hired permanently by the client.

"The trend is moving away from simply short-term contingents, although this is still a service we provide, into temporary-to-hire and project staffing," he said. "The trend is growing from providing general labor and clerical
positions to highly specialized professional fields, such as accounting."


Any business may find itself in need of a temporary services firm, Duke said, especially in this robust economy. "Many industries will need support with placing the right people with the right job. It is ever evolving. We work with small operations to major corporations. As the staffing industry has improved it's own standards and employment offerings, the acceptance and usage by major corporations has increased tremendously."

Duke said Pro Staff never charges the employees they put to work. The client company pays fees ."Rates to business clients vary based on many factors such as type of work - temporary, temporary-to-hire or permanent placement, skills/education requirements, years of experience/expertise desired, the number of employees required, and the length of assignments, etc."

Entry level pay levels for many jobs listed with Pro Staff pay from $8 to $9 per hour, he said. However, he said pay levels can grow into six figures for professional and/or management personnel.

Duke said the entire industry has taken large steps beyond its early reputation when the contingent workforces experienced a high turnover rate due to substandard pay, the types of employment opportunities offered, the uncertainty of continued employment, and client acceptance of temporaries in the workplace. "Now, the contingent (temporary) workforce can represent up to 35-percent of the pool of people getting a business' work done," he said. "The industry provides clients with several alternatives and opportunities that didn't exist years ago."

Another trend is the growth in the retired workforce using the temporary services industry for employment. Advantages to client companies to use temporaries include: solid skill matching, large pool of candidates, trial period before hiring, and, with his firm, a risk free guarantee. To the employees, temporary employment helps to define career paths and to find a good company fit. Pro Staff provides training, resume assistance and career guidance where possible.

"We make every effort to assist anyone who requests our services. However, our recruiting efforts have focused on the under-employed segment in the past 24 months."



Copyright © 2003 C. Kelly Lohr