Sacco gives three reasons for the rapid growth of temporary help services: "The business community is much more understanding and sophisticated in using temporary help services. The diversity of the temporary workers' skills has increased demand, with more alternative ways to use them. Temporary help services have branched into virtually every area you can name. Every day more than 100 positions ranging from janitor to computer programmer are filled by temporary workers.
"Second, temporary services offer flexibility that permits businesses to control the fixed costs of labor, the same as other overhead costs. If a job requires less than full-time help, it is more economical to employ temporary staffers who can do the job and who are readily accepted by business to solve personnel problems.
"The third reason is that technology has changed so rapidly that many businesses have a hard time keeping up. Equipment is an intricate part of the business operation, and has some controlling factor in the way the business is run. Businesses can't afford to have equipment sit idle or hire people who are not qualified to operate it. It takes six weeks to train a person in data processing. This is where the trained temporary employee services person steps into the picture."
New Opportunities
"As the labor shortage continues to get worse, we are going to see more and more companies using temporary employees," says Sacco. He also points out that the temporary services industry is doing a better job of identifying competent help, screening and testing applicants, and matching temporary workers to jobs. So important has the use of qualified temporary employees become to business, that seasonal temporaries are now a preplanned line item on many company budgets, according to Sacco.
The demand for temporary employees has soared from an average of 416,000 jobs a day in 1980 to more than a million in 1989. The $14 billion-a-year industry has been growing at an approximate rate of 15 to 17 percent annually for the past 10 years, according to NATS.
Temporary jobs are categorized into four groups, says Sacco. Here is the percentage of employment among temporary help industry segments as compiled by NATS:
- 63.5 percent of all temporary help jobs consist of office/ clerical positions of every kind and skill level
- 15.4 percent of temporary work involves light and heavy industrial skills, ranging from assembly line work to product demonstrations to janitorial services
- 11.2 percent of the temporary help work force encompasses technical and professional positions such as engineers, accountants, draftsmen, computer programmers, writers, and editors
- 9.9 percent of all temporary help jobs are found in the medical segment, which includes registered and licensed practical nurses, nurses’ aides, orderlies and lab technicians for hospital staffing and home health care
Earnings and Social Security
A temporary job is an excellent way for retired professionals to supplement their Social Security income. However, there are limitations on what you can earn if you are receiving social security. For example, starting in 1991, the earnings limitation for people 65 to 69 is $9,720. Under age 65 the earnings limitation is $7,080. If you are under 65, you lose $1.00 in benefits for each $2.00 earned that is above the exempt amount; if you are 65 to 69, the reduction is $1.00 for every $3.00 above the earning limitation. Once you reach 70 years of age, there are no limits on how much you can earn. But you must file an application to obtain Social Security, and rules do change. If you have questions, call the Social Security Administration's national telephone number: 800-234-5772.
When you sign up with a temporary services company, you become an employee of that company. The temporary services company pays your salary and social security taxes, workers' compensation, and unemployment insurance. The temporary service company assumes responsibility for general liability and personal property damage.
Companies use temporary help because they don't want to be employers, says Sacco. He points out that NATS is a trade association with a commitment to the industry. Member companies number 1,000 and account for 85 percent of the sales volume in a universe comprised of approximately 4,000 national, regional, and independent temporary employment services companies that operate more than 10,800 offices throughout the United States. It is also important to note that NATS members pledge to abide by all Codes of Good Practices adopted by the association.
