Temporary employment: an emerging alternative for college graduates.

Employers facing rapid changes in the business environment and college graduates facing a tough job market can each benefit from temporary employment services. No longer is temporary work primarily secretarial or administrative; professional positions are increasingly available. Based on survey

results, temporary agencies could recruit college graduates more effectively by taking certain steps: harnessing the internet; reinforcing positive perceptions about temporary work; offering flexible work option; providing in-house computer training opportunities; and becoming more involved in college career-services activities.

Introduction

Reflecting the sluggish economy and increasing unemployment rate (Bureau of Labor Statistics, 2002), college graduates are facing one of the tightest job markets in years. In fact, the number of positions available to graduates decreased more than 36% from 2000 to 2001 (Mattingly, 2002). And, according to the National Association of Colleges and Employers (2002), this trend will continue as jobs for graduates are expected to decline an additional 3.6% from 2002 to 2003. Indeed, a number of recent graduates are opting to work in internships for little or no compensation just to gain some experience that will enhance their resume and make them appear more marketable (Lingle, 2002). Increasingly, however, college graduates are turning to the temporary employment industry as a viable alternative (Wethe, 2000).

Past research into the temporary employment industry has focused primarily on employees who are already employed as temporary workers. For example, Feldman, Doerpinghaus, and Turnley (1995) surveyed 186 temporary workers about the effects of various demographics and work arrangements on different dimensions of satisfaction. Additionally, Newton (1996) examined responses from 199 temporary workers on issues such as why they selected temporary work, their commitment to the client, and the benefits they received from the temporary agency. Because recent college graduates are increasingly turning to temporary employment for the first time, it is now critical to examine this group of potential employees more closely.

Therefore, the focus of this study was to gain some insight into how today's college student perceives the temporary employment industry.

The Appeal of Temporary Employment

College graduates today may find the temporary employment industry an attractive option for a number of reasons. First, some graduates may view it as a way to gain permanent employment within a firm. And, there may be some basis for this perception. According to the American Staffing Association, about 90% of firms have used temporary employment services (Wethe, 2000) and 72% of temporary employees eventually go on to permanent positions (Berchem, 2002).

Second, the changing nature of the temporary employment industry may lead to more positive perceptions among today's college graduates. Historically, temporary employment was viewed primarily as an alternative for firms needing administrative and clerical workers (Wethe, 2000), or as an industry providing work only for low-wage, low-skilled workers (Prestegard, 1999). Today, however, temporary staffing firms place a wide range of professional positions including accountants, attorneys, and physicians (Allen, 2002). Therefore, it is likely that today's college graduate views temporary employment as a viable outlet for young professionals.

Third, temporary employment may allow graduates to experience different occupations without making permanent commitments (Feldman, Doerpinghaus, and Turnley, 1994). Graduates in many fields today are faced with an extremely limited job market where competition for positions is intense. They may feel that other occupations may provide more opportunities. Temporary employment agencies provide a way for students to gain practical experience in a variety of fields and discover if a particular occupation has long-term appeal. Or, as Wethe (2000) states, "Many college graduates are using temporary staffing agencies to take a company out for a test spin, just as they would with a brand-new car."

Finally, where many industries have significantly declined over the past decade, temporary employment firms have increased dramatically. For instance, the number of temporary agencies increased from about 100 in the mid-1980s to almost 1,500 in the mid-1990s (Feldman, Doerpinghaus, and Turnley, 1995). Additionally, while temporary staffing agencies placed just under one million workers in 1990, 10 years later the industry had grown to just over 2.5 million workers (Berchem, 2002). In fact, the temporary staffing industry experienced double-digit revenue growth throughout most of the 1990s (Berchem, 2002). So today's college graduate is more likely to be familiar with temporary employment than in years past.

Sample and Results

The sample for this study comprised 229 students at a southeastern university having a relatively large number of nontraditional students. To increase the external validity of the results, students in 11 different classes across the colleges of arts and sciences, education, and business were surveyed. All classes surveyed were ones in which at least one author was involved as a student or instructor. Participation was strictly voluntary. Some of the specific classes included Management, Music, Accounting, Mass Media, and Marketing Research.

Two surveys were designed to capture students' perceptions of the temporary employment industry. The first was prepared for students who had previously worked through a temporary agency, while the second was designed for students who had never done so. Both surveys asked respondents to select (based on the alternatives listed) the three primary sources they typically used to find out about jobs, the three opportunities that agencies could provide to make temporary employment more appealing, the pay range that could be expected for a temporary position, and basic demographic information. Both surveys also contained similar five-point, Likert-type items that allowed us to make some comparisons between the two groups on their perceptions regarding the treatment they could expect as a temporary employee. Additionally, the survey for individuals with previous temporary employment experience asked respondents how many different temporary positions they had held, the number of months they worked in each position, an d (based on the alternatives listed) the primary type of work they had performed.

Results from the survey revealed an interesting and diverse respondent profile. Of the 229 respondents, 22 % indicated that they had previously worked through a temporary employment agency and the remaining 78 % noted that they did not have any previous experience with temporary employment.

Fifty-four percent of the respondents were female and 46 % male. Of those surveyed, 43 % were between 18 and 21 years old, 53 % were between 22 and 29, and 4 % were over 30. Seventy-five percent of the respondents were white, 22 % were African-American, and 3 % were other races.

Of the respondents who had worked previously through a temporary agency, 49 % had worked in an industrial-type job, 25 % had performed clerical duties, and 16 % had worked in technical positions. Additionally, 69 % of the respondents with previous experience had only worked in one position, and about 66 % had worked for three months or less in their temporary job.

Our respondents appeared to have reasonable expectations about the pay rates typically provided by temporary agencies. Seventy-three percent believed that temporary firms paid less than $10 per hour, while only 27 % indicated they expected the rate of pay to be more than $10.

We also asked the respondents to select the three most important opportunities that they believed temporary agencies were capable of providing. Table 1 presents the results. As anticipated, opportunities for permanent jobs and competitive benefits were the most desired. However, flexible work alternatives, clear information on job requirements, and training opportunities were also considered desirable by many of the respondents. These results compare favorably to Newton (1996), who found that workers primarily selected temporary positions because they wanted to make contact with potential permanent employers, gain experience or job skills, or secure more flexible work hours.

Finally, to better understand how temporary agencies can effectively recruit college graduates, we asked our students to select the three primary sources (other than campus career centers), they were likely to use to find available jobs. Table 2 summaries the responses. While word-of-mouth and local newspapers were mentioned frequently, a majority of the respondents also selected the Internet. This finding illustrates the increasing importance of computer technology in reaching potential workers.

Differences Between Respondent Groups

In our analysis, we also discovered some important differences between the two groups of respondents on a number of additional issues related to temporary employment. We provided both groups a number of Likert-type items and asked them to describe their level of agreement. For example, to assess the perceptions of how temporary employees are generally treated by others, we presented statements such as, "Individuals who work through temporary employment agencies are treated well on the job by co-workers." Respondents were asked to rate these statements on a five-point scale that ranged from 1 (strongly disagree) to 5 (strongly agree). Those with previous experience were asked to respond based on what they had actually encountered, and those with no experience were asked to respond based on their perceptions. The group means were then analyzed using independent-samples t-tests. The results of this analysis are summarized in Table 3.

Interestingly, individuals who had worked previously in the temporary employment industry had significantly better opinions of the treatment they received by the temporary agency, co-workers, and managers. The difference was particularly evident in response to treatment by co-workers. It is possible that students with no experience in temporary employment believe that they will be treated as an outsider and may be somewhat ostracized by other workers. However, the reality may be that temporary workers are becoming more accepted. Due to the increasing importance of temporary employment, it is likely that firms make a legitimate effort to integrate temporary workers into the conventional workforce by including them in various training programs, information sessions, and social functions.

We also found a significant difference between the groups in how well they believe temporary workers are trained for their positions. Those with previous experience felt that they were better prepared for the positions in which they were placed. Again, due to the increase in the number of temporary workers, employers may be devoting substantially more resources to design and deliver training programs specifically geared toward temporary employees. Thus, those with experience working through these firms may have experienced firsthand the commitment to training.

Additionally, we found a significant difference between the two groups in their perception that temporary jobs would lead to permanent positions. However, in this case, it was the respondents with no temporary work experience who had the more positive outlook. This may be because most of the individuals in this survey who had worked in temporary positions had done so for less than three months and were unlikely to have been offered a permanent position. In fact, 49 % of the respondents with previous temporary work experience reported that they had simply performed the work because they needed a summer job, while only 14 % noted that they originally believed the temporary work would lead to a permanent position. In addition, those with previous temporary work experience may better understand the primary role of temporary employment agencies. Temporary staffing firms earn income while an individual is actually working through their agency. While many temporary firms establish relationships with their client fi rms that allow workers to be permanently retained after a period of time, the primary role of the temporary agency is generally not to find permanent employment for individuals.

We also asked respondents about their perceptions regarding the ability of temporary agencies to find a good fit between their qualifications and the jobs to which they would be assigned. While both groups of respondents generally believed that temporary agencies made an effort to properly match individuals with appropriate jobs, there were no significant differences between the groups. Similarly, the groups did not differ in terms of their perception about the feedback they would receive regarding job performance.

Managerial Implications

Given today's economy, more firms are reluctant to fill permanent positions and are, therefore, more inclined to use temporary employment to meet fluctuating demand. In turn, more of today's college graduates are turning to temporary employment agencies as a way to gain practical experience and eventually find permanent employment. Therefore, it is important for managers in both the temporary employment industry and client firms to better understand this group of potential employees. Based on this study, we can offer a number of suggestions that will allow temporary staffing agencies to recruit college graduates more effectively.

* Use the Internet

Students feel comfortable using the Internet and typically use it as an initial source of information. As our survey suggests, they consider it a primary source of job information. However, many temporary agencies have not yet embraced the Internet as a primary recruitment tool. It may be that staffing firms believe that the typical temporary employee may not be computer-literate or that the firms themselves do not have the necessary resources in-house to maintain a Web site. However, if temporary agencies want to compete for younger, educated workers, the Internet should be considered.

* Manage perceptions

Based on our results, we found that respondents who had never worked through a temporary agency had significantly lower perceptions of how they would be treated by the staffing agency, co-workers, and managers than those who had actually experienced temporary employment. As temporary firms continue to expand into providing more professional employees (many of whom are not familiar with the temporary industry), it is essential that they develop recruitment tools or procedures that provide an accurate portrayal of what the individual will experience. For instance, open houses that allow potential applicants to interact with the temporary agency staff or realistic job previews (e.g., videos, brochures, etc.) that include testimonials from previous employees might be useful.

* Offer alternative work options

More than half of our respondents identified flexible work arrangements as one of the three most important opportunities they believed temporary agencies could provide. Today's younger workers actively seek a reasonable balance between their work and personal lives. They typically value work alternatives that allow them to pursue interests outside the workplace, and to the extent that temporary staffing agencies can provide flexibility, they may be more willing to sacrifice more stable employment opportunities. Temporary agencies that can successfully negotiate flextime schedules, compressed work weeks, and telecommuting opportunities will likely be more appealing to today's college graduates.

* Provide in-house software training

Increasingly, adults are seeking training opportunities to enhance their skills sets. For instance, one university that caters to working adults recently reported a 19 % increase in enrollment (Marcial, 2002). Similarly, our research revealed that about one-quarter of the respondents identified training programs as one of the top three opportunities they believed temporary agencies should provide. One skill, in particular, that seems to be especially important to working adults and to employers is the ability to perform basic computer software applications, such as develop spreadsheets, set up databases, and use word processing. In fact, these abilities are required today even in many blue-collar jobs. These basic computer skills can be provided in-house by temporary agencies at a relatively low cost. Not only will this allow staffing agencies to make their temporary employees more marketable, it might also motivate college graduates to consider the temporary industry because they are developing skill sets th at will enhance their ability to compete successfully for better jobs in the future.

* Establish and build relationships

A number of respondents expressed an interest in working through temporary firms as a way to begin their career. One individual stated, "Temporary agencies are a solid place for college students to gain professional experience." Another suggested, "I think temporary staffing is beneficial for people who are not sure what type of career they want to pursue because it allows you to try different types of jobs." So there appeared to be a willingness on the part of students to consider temporary employment. However, it was also apparent through other comments that some students were a little unsure of what temporary staffing agencies can offer. For instance, one respondent noted, "I really do not know enough about temporary work to make an informed decision." Temporary staffing firms might consider becoming more involved with career services at colleges and universities, participating in job fairs, and speaking to student groups on campus.

Conclusion

The nature of the temporary employment industry is evolving. No longer do temporary staffing firms simply place low-skilled, blue-collar workers. Today, many temporary agencies are becoming increasingly involved with highly skilled, well-educated workers as well. This change reflects both organizations that are reluctant to hire permanent employees in a volatile economy and to individuals who are increasingly interested in flexible work alternatives. And, faced with one of the tightest job markets in years, college graduates are beginning to realize the opportunities that temporary employment can offer. This study examined how today's college student perceives the temporary staffing industry and offered suggestions on how temporary firms can better recruit this emerging applicant pool.

Table 1

Desired Options From Temporary Agencies

                                   Percent Listing
                                   Option as Top
                                   Three in
                                   Importance

Permanent Job Opportunities             70%
Competitive Benefits                    63
Flexible Work Alternatives              51
Precise Details on Available Jobs       27
Training Opportunities                  24
Feedback on Performance                 13
More Challenging Work                   11

Table 2

Primary Sources Used To Find Jobs

                 Percent Listing
                 Source as Top
                 Three in Importance

Word-of-Mouth         83%
Internet              58
Local Newspaper       53
Billboards            15
Radio                  8
Television             5

Table 3

Respondents' Perceptions

                                    Previous    No Previous
                                   Experience-  Experience-
                                    Mean (1)     Mean (1)    t Value

Good Treatment by Temporary Staff     3.76         3.29       4.03 **
Good Treatment by Co-Workers          4.22         3.07       8.93 **
Good Treatment by Managers            3.92         3.16       5.73 **
Proper Training Provided              3.28         2.97       2.17 *
Temp Jobs Lead To Permanent Jobs      2.58         3.23      -3.77 **
Jobs Assigned Are a Good Fit          3.29         3.48      -1.26
Adequate Feedback Given on            3.26         3.21        .39
 Performance

** p < .01

* p < .05

(1)Mean scores based on 5 point Likert-type scale: 1-Stongly Disagree to
5-Strongly Agree

REFERENCES

Allen, P. (2002). The contingent workforce: Challenges and new directions. American Business Review, 20, 103-110.

Berchem, S. P. (2002). Poised for growth: ASA's annual economic analysis of the staffing industry. Retrieved September, 2002, from the World Wide Web: http:/f www.staffingtoday.net.

Bureau of Labor Statistics. (2002). Retrieved September, 2002, from the World Wide Web http://www.dol.gov.

Feldman, D., Doerpinghaus, H., Turnley, W. (1994). Managing temporary workers: A permanent HRM challenge. Organizational Dynamics, 23, 49-64.

Feldman, D., Doerpinghaus, H., Turnley, W. (1995). Employee reactions to temporary jobs. Journal of Managerial Issues, 7, 127-139.

Lingle, C. (2002). Graduates struggle with difficult job market. The Denver Business Journal, 53:51, Al.

Marcial, G.G. (2002). A gold star for Strayer. Business Week 3799, 89.

Mattingly, S. W. (2002). Impact of tight job market felt by college graduates. Business First, 18, 1-3.

National Association of Colleges and Employers. (2002). NA CE's Job Outlook: Fall Preview,

Retrieved September, 2002, from the World Wide Web: http://www.naceweb.org.

Newton, L. (1996). Stiff competition for talented temps. HR Magazine, May, 91-94.

Prestegard, S. (1999). A landmark in the employment business. Marketplace, 10:12, 12.

Wethe, D. (2000). Temp agencies show growth in hot economy. Dallas Business Journal, 23, 30.

Dr. Gainey's research has appeared in numerous journals including Personnel Psychology, Industrial Relations, and the Human Resource Management Journal. Laura Barnett, Charity Davis, and Michelle T. Bell participated in the study conducted for this article as students in the Human Resources Management program at the State University of West Georgia. Bill Curvino, president of Restaff Inc., of Atlanta, has been in the temporary staffing industry for over 10 years.