Templist/Pettersson/dt1st/mark2nd
Executive Summary:
The strong economy and low unemployment last year meant big business for local temporary placement firms. Combined revenues for the top 25 firms in L.A. County increased by 17 percent in 1997 over the previous year. That outpaced the national growth rate; total revenues for temporary health services in the United States rose 15 percent in 1997, according to the National Association of Temporary and Staffing Services.
Many companies are reluctant to hire permanent staff after the years of downsizing, according to Sue Foigelman, area manager of Manpower Staffing Services. “Companies seek people with more flexibility,” said Foigelman, “and temporary work has become more socially acceptable than it was in the past.”
With temporary work becoming more a norm than an exception, placement firms are filling a void created by the disappearance of the former relationship between companies and their employees. To attract workers in a tight job market, many temp agencies try to make employees feel like they’re part of a larger organization.
The Pacesetter:
Manpower Temporary Services is the largest temporary placement firm in Los Angeles County with $118 million in local revenues, an 18 percent increase over last year. Manpower separates its temp workers into three core categories: office, industrial and technical.
Sue Foigelman, one of Manpower’s area managers in Los Angeles, notes the changing attitude of companies as well as employees toward temporary work. “Traditionally, temporary employment was restricted to students and housewives,” said Foigelman, “but it has become an attractive alternative to permanent jobs for many people because of the flexibility it offers.”
Foigelman notes that Manpower offers its workers benefits, such as paid vacation, medical insurance, and stock options, which are not commonly associated with temporary employment. It also provides free training to make employees proficient with the most up-to-date software and computer technology.
Despite last year’s strong performance for its L.A. office, Milwaukee-based parent company Manpower Inc. has been taking a pounding on Wall Street lately. Its stock closed at $21.06 on Sept. 29, down from a 52-week high of $45.75. The company announced net income for the second quarter ended June 30 of $26.2 million (32 cents per diluted share), compared to $40.9 million (49 cents) for the same period the previous year.
