Demand for Temps Rises

Businesses still wary of commitment; temporary staffing companies’ payrolls grew 10.7% in June.

As orders from food makers have picked up during the past year, Create-A-Pack Foods Inc. turned to a staffing company, Kelly Services Inc., to add about 100 workers.

Hiring on a temporary basis saves money if an employee doesn’t work out and expands recruiting beyond Create-A-Pack’s Ixonia, Wisconsin, headquarters, Chief Executive Officer Glenn Cochrane said.

No Foreshadowing

While hiring among temp workers has historically foreshadowed gains in the broader job market, this time may be different as companies rely on temporary staff for a longer time, said Kforce’s Blackman.

Demand Indicator

Robert Half International Inc.’s temporary-staffing business -- comprised of its Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources divisions -- also is an indicator of demand, Sommer said. If temporary- staff revenue were to grow more than 10 percent in the first three weeks of July -- which the Menlo Park, California-based company tends to provide on its earnings conference call -- this “would be a win, given 9 percent expected revenue growth in the third quarter,” he said.

Project Assignments

The same principles for other supply chains -- like just- in-time practices -- also can be applied to talent, said Teresa Carroll, senior vice president for Kelly Services.

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