Companies Only Hiring Temps

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.

“You can build good crews with temp services,” he said, noting that the company -- which packages products including sauces and icings in pouches, bottles and jars -- is seeking to fill another 28 positions.

Create-A-Pack is among a growing number of businesses turning to staffing companies for temporary workers, reflecting employer concern about the U.S. economic outlook. The number of people on the payrolls of temp-staffing businesses grew 10.7 percent in June to 2.5 million from a year earlier, the biggest increase since May 2011, based on data from the Labor Department.

Demand for temporary employees is gaining momentum as companies seek more flexible staffing arrangements, according to Tobey Sommer, director of equity research in Nashville at SunTrust Robinson Humphrey Inc. This has helped create a shift within the labor force, as a “not-easily-forgotten recession” has made many executives cautious about hiring, he said. Read more >>