Temporary assignments - temporary-employee franchises

Nation's Business, July, 1991 by Meg Whittemore

Even in the current economic slowdown, franchisee Betsy Lindgren sees a bright future in a certain federal statistic: The Department of Labor says the third-fastest growth rate among employment sectors is being posted by the temporary-help industry.

Lindgren owns an Express Services Temporary franchise in Owatonna, Minn. Her strategy for success in a recession? "I make sure our customer service is at its peak performance," she says.

Lindgren supplies more than 75 manufacturing companies with temporary personnel, helps recruit executives, and offers training. "We are a one-stop shop in the field of personnel," she says.

Robert Funk, president and founder of Express Services, based in Oklahoma City, Okla., says: "There is a reshuffling going on in corporate America. The heavy burden of benefits per employee, plus the decline in the actual productive hours per day, has forced industry to look at other methods of hiring people."

Besides cost savings, companies today want specialized employees for short-term help. "We have the ability to customize a program to fit the client's specific need," says Lindgren.

Start-up costs for a franchise outlet of Express Services are $67,000 to $110,000, depending on the market size and location.

Increased competition in the temp industry is prompting various business-building tactics. For example, Uniforce Temporary Services, based in New Hyde Park, N.Y., is waiving its $15,000 fee for new franchisees who have executive-level experience in the industry. Remedy/Temp, headquartered in San Juan Capistrano, Calif., offers clients their money back if they are dissatisfied.

Helping client companies increase productivity with a diminished workforce base can spell success for temporary-employee franchises.