Temporary Employment Plays Role in Helping Firms Compete Aggressively / Says Norrell Territory Manager

By Carter, Kim | THE JOURNAL RECORD, May 15, 1986 | Go to article overview

Temporary Employment Plays Role in Helping Firms Compete Aggressively / Says Norrell Territory Manager


Carter, Kim, THE JOURNAL RECORD


By increasing productivity and cost effectiveness, the use of temporary employment services by corporations may be one factor that will allow businesses to compete more aggressively, especially in the changing global marketplace.

The temporary employment industry is one of the three fastest growing industries in the United States, noted Curt Moore, territory manager of Norrell Temporary Services in Oklahoma City.

Last year, gross revenues for the industry nationwide hit $6 billion. At its current pace, it could reach $13.1 billion by 1990, with a projected nine of 10 businesses using temporary help.

While the industry has grown 17 percent over the last five years, Norrell Temporary Services, with 250 offices nationwide, has grown at a compounded rate of 31 percent, Moore said.

Norrell maintains two offices in Oklahoma, one in Oklahoma City, which has been open for six years, and one in Tulsa. The Oklahoma offices expect to report combined revenues of $4 million this year, and in two years anticipate revenues to double, Moore said.

According to predictions of the U.S. Department of Labor cited by Moore, by 1990, 8 percent of all workers will be temporary employees.

"There are trends occuring that makes it more advantageous and lends more creedence to our industry," he said.

The labor growth rate is currently at 1.3 percent, according to the U.S. Bureau of Labor Statistics. The rate is one half of the rate in the 1970s, when the economy absorbed the "baby boomers" bornfrom the postwar era through 1957, when the birth rate began a decline.

"The labor market is shrinking," Moore said. "In the next five years employers will find themselves scrambling for workers. It will be an employee's market.

"All those who had luxury of available people. . .will begin to use their time more wisely, focusing their efforts on entry level positions. They should focus on more core positions that contributeto long-term work."

The company can waste time by concentrating on hiring for positions that have a high turnover, rather than on those that are considered a long-term asset to growth of the firm.

As more industries deregulate, with the prime example being the finance industry, companies are being forced to re-think the way they do business and uncover ways in which they can be more competitive on a global basis, Moore said.

"Trends are forcing managers away from traditional thinking," he said. "All theses things combined make it more useful to use temporary service. It is more cost effective and can increase produtivity when utilized in the right ways."

On a planned rotating schedule, Norrell Temporary Services supplies companies with temporary help after analysis of the firm's needs has been conducted. Moore said errors associated with work has declined and productivity is maintained at high levels.

The cost of labor is reduced, Moore said, because temporary agencies can staff the required number of people during peak periods and slow periods, eliminating overstaffing and understaffing problems and associated costs. …

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