By Beth Ann Matkovich

Today’s business world is highly competitive. Unexpected corporate downsizing has flooded the marketplace with consultants and small businesses of every type. The dominant factor, of course, is money. How can a company, large or small, in need of qualified employees maintain operations without overspending its budget, especially if their job needs are for technical workers in areas other than the general administrative help provided by most temporary agencies.

Alternative employment pools are an increasingly popular option. There are dozens of agencies around the midstate that contract and lease one employee or an entire staff for short or long term assignments to businesses in need. Not only do these agencies recruit and hire the right person(s) for the job, they also cover payroll, taxes, unemployment, worker’s compensation and other benefits. This frees the contracting employer of the hassle of interviewing and budgeting for additional employees. Some firms contract only financial personnel such as tax professionals, accountants and auditors while some work solely with information technology or engineer staffing; and still others do it all.

The Byrnes Group in Camp Hill, for example, handles accounting, engineering, IT and administrative personnel. Keystone Personnel in Lemoyne also handles IT, engineering and office support employees, as well as sales and marketing professionals. York’s employment East also contracts employees in these fields. But, you may think, aren’t these companies temp agencies? Well, yes and no. The Byrnes Group, Keystone Personnel and Employment East are temporary agencies which place employees on short term assignments. However, employee contracting is not the same as temporary placement. Contract positions require a particular level of experience, educational qualification, or both. In addition, under a contract arrangement the professional is an employee of the agency, not the contracting business. Thus, employees receive their paychecks, benefits, and performance reviews from the agency.

Alternative Resources Corp., located in Baltimore, is an exclusive IT staff contractor. If a small or start-up business needs to develop or upgrade its computer system, Alternative Resources can provide one or more employees to do the network design, upgrade and programming. Once the system is up and running, the employee(s) can teach the client how to operate the system.The client can then retain the contract to manage the system, or both. Similarly, Financial Search Group of Harrisburg contracts only financial professionals. Companies that don’t have the time or resources to hire an accountant, auditor or tax specialist can contract through Financial Search Group.

With so many small businesses emerging around the midstate and across the country, employee contracting is not as widespread as one might think. According to Sherry Shumaker, owner of Keystone Personnel, contract staffing constitutes only 25-30 percent of her business, but the industry demand is growing. “It’s a booming business, a godsend to both small and large companies,” Shumaker says. Despite its modest popularity, the contracting process is very convenient and actually quite simple. For example, if Mr. Small Shop needs an employee or staff to fill a particular position(s), he contacts the staffing agency, describes what he needs and for how long, how much he’s willing to spend, and what he’s looking for in education requirements and professional experience, along with what benefits he would like to offer. From there, he’s worry-free. The contracting agency will advertise, recruit, interview and hire the candidate that best fits Mr. Shop’s needs.

Most agencies are similar in their contracting services, but differ in their fees. After Mr. Shop describes how much he wants to spend and what benefits he would like to offer, Keystone will develop a package for the employee(s) and administration and charge invoice for one lump sum. However, there is a standard agency fee of one percent per $1,000 of the employee’s salary, not to exceed $20,000. Financial Search Group charges by the hour, with their cut depending on the employee’s education level or position. Employment East’s fees depend upon the employee’s employment code, ranging from industrial to clerical to professional, with different costs applying to each.

Agencies will contract employees for any length of time, depending on the client’s need. Financial Search Group employees can work anywhere from one week to one year. The average contract for Keystone employees is one year, although some have worked as little as six months to as many as five years. After a contract has begun, many agencies allow employees to be hired away from the agency. At Keystone, Byrnes, Employment East, and Financial Search Group, companies can hire contracted employees away from the agency after a designated amount of time. For most, it’s three months. Others negotiate a contract transfer or a “buyout fee” on a case-by-case basis.

Another selling point is that several of the agencies located around the midstate serve both local and national clients. Although locally owned, Keystone Personnel is part of a nationwide network that can transfer out-of-region clients to contracting agencies in the client’s respective area. York-based Employment East contracts employees to clients across the country from its one office. Financial Search Group is headquartered in Pittsburgh, but retains offices in Harrisburg and Cleveland. Alternative Resources has 60 offices nationwide and a pool of 50,000 contract employees. Thus, if a small company has a large client in another city or state, most likely any of these agencies can provide staff to meet the company’s needs.

With all of the benefits and conveniences of employee contracting, small businesses no longer have to suffer from a lack of resources or manpower in today’s competitive marketplace. Employment agencies such as Keystone, Byrnes, Employment East and Financial Search Group, are all located in the Harrisburg area and can provide personnel according to the company’s needs. Even a one-man shop can have a staff as large as its corporate competitor. From advertising and recruiting to payroll and performance reviews, these agencies offer it all.