GREAT 157 IDEA: Rely on Temps and Freelancers

Talented people, especially in the high-tech arena, are fielding multiple job offers. In a seller's market, top people demand high salaries, incredible benefits, and perks. Big companies can afford to woo them, but what can you do to compete for talent?

Don't despair. There are millions of terrific people who, for one reason or another, prefer to work for a variety of firms. So they register with temporary agencies or employee leasing firms. Temping also has a strong appeal to people who are between jobs or people who just need a fresh start after a bad work experience, maternity leave, or a move across country.

Unlike the strictly clerical or secretarial agencies of the past, modern temp agencies attract top talent and frequently specialize in specific industries. There are agencies that place accountants, chief financial officers (CFOs), software engineers, marketing executives, construction managers, graphic designers, and medical doctors. No matter what kind of work you require, you can find a temporary worker to fit the bill (see Great Idea #158).

In fact, temporary workers in the labor force have increased to 10 percent from 8 percent five years ago.

Christopher Dwyer of Aberdeen Group believes such workers will increase to 25 percent by 2011.

As of October 2010, the Bureau of Labor Statistics reported the number of workers placed by temporary-staffing agencies rose to 404,000, making up 68 percent of the 593,000 jobs added by private employers.

The Department of Health and Human Services estimates the average manager spends about 15 percent of his or her time on employee-related administrative tasks.

“Hiring an agency is a cost-effective way to manage a workforce,” said Kim Shoemaker, CEO of Aclouché Inc. in Columbus, Ohio. “The staffing company ensures that all government mandates are met.”

Temps are on the agency's payroll. Best of all, if they aren't working out, just call the agency and they will be quickly replaced—usually on the same day.

If you hire dozens of workers, most employment agencies will set up an office onsite, according to Shoemaker. She said having a clear job description to present to the temporary staffing agency is critical. You also need to specify the hours of employment, the duration, and whether you want the applicant to be tested for any skills.

“Since we are the employer of record, we handle everything from verifying the hours worked to running the payroll,” said Shoemaker.

If you need more short-term or project-oriented help, consider working with a company like Elance.com.