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Labor from temp services?

8277 Views 25 Replies 16 Participants Last post by  CLP162
Was wondering if anybody here has ever used a temporary service to hire people before, laborers specifically. I'm talking about Manpower, Express, temp agencies. What do they charge and cover as far as insurance, etc?
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LaborFinders here charge $12.00 w/ a min. of 4 hrs. They cover ins. and workers comp. They also have limits on use of power tools, heights and a few other items. I use them strictly for bull work, moving heavy stuff and hand digging.
I did manage to hire an excellent drywaller that I hired from them to carry drywall up 3 flights of stairs. The guy WAS union and his doctor would not release him to go back to work. Union's loss = my gain.
Mostly expect a bunch of hangovers and unskilled labor.
I do a few rehabs every year mixed in with my regular electrical work. I use guys from LaborReady just for the demo phase only. I can get half a dozen guys to gut a place and have it all in roll off dumpsters in a very short period of time. I've never run across a guy from a temp place that I thought had any real trade skills. After all, in today's market would a guy with bonafide trade skills be working for a temp agency? The answer in my estimation is "maybe", but he/she surely has other issues or they wouldn't be working for a temp service. These other issues may make them unemployable by a traditional employer.
Had the pleasure of running a job for a guy who used only temp labor. It was quite an education. :eek: If you listen to the chit-chat during the day, you can learn a lot about smoking crack, where to buy illegal firearms, and how life is in prison. They were ALL on work release from jail. I didn't invite any of them home for dinner...
So you're basically saying that it's alot like hiring from a newspaper want ad. :rolleyes: Finding quality help has really always been my biggest problem, too many show up with a brand new tool belt, hammer, & tape, claiming to be "experienced" carpenters. My first question weeds about 2/3 out immediately, {Explain what plumb means?} And don't they teach these kids in school about wearing proper attire when appling for a job? I can't believe how many young guys show up for an interview for a construction job wearing baggy a$$ed pants, that are just fallin off their butt!!

I had an inspiration after posting this thread last night. Well actually just going to copy an idea I read about over on W&C board (drywall & plaster hangout). Someone in an old post there was talking about recruiting new help from local HS Voc-Tech Class. I'm going to look into that today.

How about it? Anyone tried this approach before?
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housedocs said:
Someone in an old post there was talking about recruiting new help from local HS Voc-Tech Class. I'm going to look into that today.

How about it? Anyone tried this approach before?
I've never done it but after I grow to a comfortable point it is one of my plans to give college kids in construction mgt classes some real hands on skills so they don't go into the market place with theory only. Also kids in technical high schools who want summer jobs.
housedocs said:
...Someone in an old post there was talking about recruiting new help from local HS Voc-Tech Class. I'm going to look into that today...How about it? Anyone tried this approach before?...
Yes, and construction tech students from local 2 year colleges, engineering students from 4 year colleges, and recent grads. I have had mixed results, but it has worked out a lot better than anything else that I have tried.

We had a large highway contractor in area who hired ONLY graduate engineers. They still need a lot of training, but at least they have a basic idea of what's going on.

Many temp outfits routinely recruit work release prisoners, and guys who are on parole and probation. Be careful.
housedocs said:
Was wondering if anybody here has ever used a temporary service to hire people before, laborers specifically. I'm talking about Manpower, Express, temp agencies. What do they charge and cover as far as insurance, etc?
Before I begin I need to clarify that I'm currently working for both the family construction business and at construction temp staffing company (more skilled guys, not so much laborers). I won't spam on this issue, but you need to know my background in case I show a bias....lol.

There really are two seperate classes of temp staffing agencies. What you've listed is basically day labor services. These are pretty much industrial staffing companies that hire factory labor and send them pretty much anywhere. We still one called labor ready in the field when we need a pair of hands for pushing a broom or cleaning up shingles. Every once in a while we get someone who's great for a while but I don't think we've ever hired anyone permanently from labor ready.

Every type of temp service I know charges a flat rate per hour (rates depending upon location) that covers taxes and workers compensation only - you are still responsible for general liability insurance. This is important as you are responsible for supervising these guys on the job and if, because of lack of supervision, they break a $2,000 window - the company that sent them to you is not liable.

Tim
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There are some very good temp services in some areas of the country. The guys from these services are worth having on the job site. You may even find yourself some good permanent employees. If you have time to stop by the main office for info, take a look at the temp workers who are waiting in the lobby. Just like mothers-in-law, one quick peek is usually all it takes...
I have used temp labor quite a bit. Mostly for tearing off and cleaning up.
Overall you have to have close supervision on site if you are to avoid problems or have a lack of performance.
Most of the time I have found these individuals to not be able to fit into the mainstream work force for one reason or another, and there are many reasons. There have been many times when I have been able to get a group of guys who have never worked together, work as a team and be extremely productive. I offer cash incentives at the end of the day, or project.
Lets face it, overall the temp agencys dont realy pay these guys much, so some cash money based on merit goes a long way. All invloved know it is temporary so we try to make it so it benefits all. Some of the best workers I have ever seen have been temps. On the other hand some individuals just are not motivated.
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Red Cedar said:
...I offer cash incentives at the end of the day, or project...
:Thumbs:
temps

One other thing I should have mentioned. The best thing you can do to get the performance you want out of the temp is take a couple minutes at the beginning of the day, introduce yourself, get their name and all that jazz then tell them specifically what has to be done that day and how. If you start the day by setting specific expectations for that day, they will generally get in synch with you and your crew MUCH quicker.

Temps that aren't told specifically what their expectations for the day are typically will do work they way they are used to (not the way you are) or the way it was done at their last assignment (not your way) or will stand around for fear of making a mistake.

As a guy who was a temp then lead temps in the field and now recruits and sends out "temps" (well, sorta temps), I can't stress how important that is.

Tim
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Excellent points Tim. A case of soda on ice, a couple of packs of smokes, will run less than $12.00, but will return a dozen times over, in my expierence. Most of these guys don't have a nickle and the "little things" will get them moving.
As someone who graduated hs with vocational training 20 years ago I can tell you its got its good points and bad. These kids have some book knowledge but almost no field knowledge.Just have to hope you get a good worker and eager learner
Great thoughts guys really appreciate the input!
I have a worker I have been using part time directly, and would like to get workers comp for him. I was wondering if it would be possible to have him join a temp agency, and just have him be qualified as a "trench digger" to get him on workers comp. Only has a couple of days of work per week so...
Fred - One option is to talk to the temp company and ask them about "payrolling" him or getting him set up on "employee leasing". It's cheaper per hour than the standard markup on temps and frankly the temp agency doesn't deserve the higher markup since they didn't recruit the guy - you did.

Here's another option. I haven't used them personally but I know some temp companies provide this to employees: http://www.starhrg.com/

Tim
Temp agencies don't like you "stealing" their help, so I'm amazed at the leasing thing. Cool.

They require intense supervision.
There are trully skilled ones, but they have problems.
There are diamonds you can aquire.

Here Here on the pre-job talk and incentives! They respond to that. I usually need them to get a piece of work done that shouldn't take all day. I tell them that they will get paid for eight hours regardless, even if they do it in four. Then get outta the way, lol!

And the market of Tech school help is a growing resource. It's getting better, according to the AGC. But who can beat a highly motivated Hispanic? Go to the local gathering place, sometimes a church, and hire them. Always pay them with a check and if they get into the range of a 1099, consider hiring them. Because we all know that many Hispanics are illegal and it's reasonable to expect they won't pay their own taxes. And pay them what they are worth or else you harm all workers.
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GCMan said:
Temp agencies don't like you "stealing" their help, so I'm amazed at the leasing thing. Cool.

They require intense supervision.
There are trully skilled ones, but they have problems.
There are diamonds you can aquire.

Here Here on the pre-job talk and incentives! They respond to that. I usually need them to get a piece of work done that shouldn't take all day. I tell them that they will get paid for eight hours regardless, even if they do it in four. Then get outta the way, lol!

And the market of Tech school help is a growing resource. It's getting better, according to the AGC. But who can beat a highly motivated Hispanic? Go to the local gathering place, sometimes a church, and hire them. Always pay them with a check and if they get into the range of a 1099, consider hiring them. Because we all know that many Hispanics are illegal and it's reasonable to expect they won't pay their own taxes. And pay them what they are worth or else you harm all workers.
The reason to use a temp service is to avoid the potential legal problems resulting from hiring daylaborers, when such laborers cannot be truly classified as independant contractors. Temp services handle w/c and taxes as well as the imigration issuse.
Yep, I get all hostile about the phony 1099ing of "contractors". It's wrong. You are stealing from everybody. :evil:

But there is nothing wrong with hiring a Hispanic you suspect may be illegal. The government does not require you to verify their status, and quite frankly, they don't care. Just do the right thing and withhold. And don't let them claim ten dependents. The Feds want you to keep it to a maximum of four, if I remember correctly.

In other words, the Feds have been looking the other way for many years with regards to illegals. For example, you are required to photocopy ID and SS cards and keep them in your records. Let's say an illegal furnishes you with the necessary documentation when you hire him. Then, after tax time, the IRS sends you a notification that one of your employees has a bogus SS number. They "ask" you to address this with your employee, but you mustn't punish them, which obviously includes firing. You are "requested" to recommend the employee to fill out IRS form W-7, which is specifically designed to provide valid SS numbers to illegals. But it is optional. Are you starting to get the joke? Is this the IRS we know and love? The bogus SS number notification from the IRS can be canned, circular file #13.

The only thing I want from hiring illegals is that they must get paid a fair wage, and that the employer withholds (and pays the Fed), while not allowing excessive dependent claims.

I know these guys. They send money home, sure. But they spend plenty, and if you all help with wage taxes, we all win. In fact, someone should do a market study on the price of beer in concentrated areas of illegals, lol. Some of the illegals I've been around have prolly drunk enough to pay for a beer distribution center our company built. :Thumbs:

And BergenBldr, the threshold for the 1099 is something like $500.00 per year. If dude needs a quick hand, that threshold is not crossed, and there is nothing to worry about. Just be sure to pay him with a check he can cash at the liquor store, or whatever, so it reflects on your company's earnings correctly. I never understood why people with a business pay cash.

My next point was that once your payments to this worker exceeds the threshold, THEN HIRE HIM. DO NOT 1099 HIM BECAUSE THAT IS WRONG!

Ahem...excuse the shouting :eek:
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