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Temp companies on Long Island find market strong: Firms say using temporary employees helps businesses weather ups and downs of the economy(Newsday (Melville, NY) (KRT) Via Acquire Media NewsEdge) Sep. 2--The government employs a variety of barometers to gauge the health of the nation's economy. There's the gross domestic product, the consumer price index, the index of leading economic indicators, the consumer confidence survey, among others. But some might argue that tracking the ebb and flow of temporary staffing companies would suffice just as well. It's a sector worth watching, said Gary Huth, labor market analyst with the New York State Labor Department, because of its sensitivity to the economy. As employers face economic challenges, they'll first cut back on temp staff before laying off their permanent workers, he said. Likewise, when the economy starts to improve, employers may not want to hire permanent staff right away, so they bring in temps, who may eventually be hired full-time. Long Island is home to a number of staffing firms, including GreyStone Staffing, Manpower, Kelly Services, Adecco and Lloyd Staffing. Besides temporary placements, staffing companies also offer permanent job assignments. Adecco, based in Melville, is part of Swiss-based Adecco SA, which last reported $35 billion in revenue worldwide, with a staffing service that connects more than 700,000 temp associates and business clients through 6,600 offices in more than 70 countries. Locally, Adecco Group North America employs a staff of 24 and places about 2,500 temps a year on Long Island. Lloyd, which is also based in Melville and employs about 158 of its own staff and 7,000 to 8,000 active temp workers a year on Long Island, saw revenue last year of $55 million, up 2 percent from the previous year. It has been based on Long Island for 37 years and also has offices in Manhattan, New Jersey, Maryland, Florida, Texas and California. Six offices are company-owned, with five run by franchisees, and the firm is looking to grow by selling more franchises. According to the company's president, the country's economic woes have not trickled down to Lloyd. Weathering the economy "Lloyd has not experienced any significant business challenges despite the current economy," said president Keith Banks. "Long Island appears to be holding steady, though nationally the BLS reports that 40 percent of the jobs lost this year have been in our industry. Some firms remain steady in their use of temporaries as a long-range workforce strategy, while others use it defensively to combat economic downturns. These firms use contingent labor as workforce shock-absorbers." Indeed, the industry as a whole, like many others across the country, has not escaped unscathed from the nation's prolonged economic slump. According to the trade group American Staffing Association, staffing employment nationwide was down 6.5 percent in the second quarter compared to the same quarter last year, employing 2.8 million temp and contract workers per day from April to June. Still, that drop is less severe than the "precipitous drop characteristic of previous recessions," when staffing employment dropped 15.7 percent in the second quarter of 2001, said Richard Wahlquist, president of the Alexandria, Va.-based association. It's no surprise then, given the subprime and credit crises, that staffing needs from many employers in the financial services sector and the vendors that serve them are down, said Bob Kovalsky, senior vice president for Adecco. Long Island's financial activities sector, which includes financial services, lost 3,200 jobs from July 2007 to July 2008, according to the state labor department, dropping from 81,500 to to 78,300. But for other employers, especially those in retail, insurance, telecommunications and business services, Kovalsky said, Adecco is seeing strong demand, particularly for positions in customer service, sales support, accounting and creative services/graphic design. Amanda Oliveri, regional sales and operations manager in Lloyd's Great Neck office, echoes that assessment. She said that besides seeing strength in the health care sector, she's also seeing strong demand for staff in finance and accounting functions, ranging from senior-level positions to those in accounts receivable, clerical and data entry work. Among job candidates, she said, she is seeing a rise in the number of administrative assistants who have been downsized from "companies that are running lean and mean." Also, she says, there has been an increase in the number of teachers who have either been laid off or who are seeking supplemental income. More applicants As the economy worsens, Lloyd is seeing more job applicants, said Nancy Schuman, vice president of marketing, especially through its online application process. In the first six months of this year, its Long Island offices interviewed 4,908 temp applicants, up 5 percent over 2007, she said. Kovalsky said his company is seeing more temp job candidates come in with a broader range of skills and experience than in past years, which makes a good match for what clients say they are seeking: staffers who are flexible and looking to "take on more responsibility, willing to grow with the organization." For instance, he said, a temp may initially be assigned to an administrative assistant role, then be moved to a marketing function, then moved again to a human resources support role. So, he says, those job candidates who "look very specifically into one industry and one job title will be at a disadvantage." Adapting to temp work In that regard, Joan Lee could be exhibit A. Lee, 42, a former benefits administrator who relocated last year from Baltimore to Kew Gardens to be closer to her family, found the value in being more flexible in her job search. When her approach was to search for a permanent job in her field, she said, "I didn't work for over six months trying to get back into benefits administration." But when she took the temp route, Lloyd Staffing placed her in a long-term medical secretary assignment, rotating among offices with North Shore-Long Island Jewish Health System, which has given her experience in the health care sector. Lee said that the positions you think you want may not be available, but it's wise to be receptive to learning something new, so "be willing to be open-minded." To be sure, the industry has changed as the times have. Job seekers can start the process from their home computers by checking the staffing firms' Web sites and even applying online, in some cases completing certain Web-based screening tests in areas such as math, English usage and office skills. They can then expect a face-to-face interview in the staffing firm's office, and sometimes even on-site interviews with the prospective employer. Candidates who pass muster can then be assigned to a work site, but have the option of declining the job if they have a scheduling conflict. For Lee, a willingness to be flexible has produced many benefits, among them a career detour. She is studying for a career in the fashion design field, learning how to take exact measurements for various parts of a garment, including the seams, hems, darts and pleats. For analysts such as Huth, the future for local temporary staffing companies is less clear. He said he sees Long Island "at a tipping point," trying to determine if things will deteriorate further or if "we'll muddle through." To see more of Newsday, or to subscribe to the newspaper, go to http://www.newsday.com Copyright (c) 2008, Newsday, Melville, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |