Advance Services: Golden Rule
Professional Services
Written by Liz Jones   
Friday, 30 November 2007
Advance Services: Golden Rule - American Executive - RedCoat PublishingAdvance Services: Golden Rule - American Executive - RedCoat Publishing
Paul Sandall explains how the success of this company stems from following a few simple adages, including treat others the way you wish to be treated.

When Paul Sandall moved to Nebraska in 1989 to be closer to family, he began working for a small staffing firm. Within a few years, he knew he could do it better.

Sandall started Advance Services in Norfolk, Neb. in 1994 with an uncanny sense of confidence. “I was probably more gutsy than educated back then, so I opened up shop in Norfolk and lived in my in-law’s basement until I got it off the ground. I had never been so sure of anything in my life as I was when I started this business,” he said.

Advance Services: Golden Rule - American Executive - RedCoat Publishing
Paul Sandall, President
Sandall, president of Advance Services, had previously been engaged in day-labor staffing, which operates on a first-come, first-served basis. He realized a longer-term staffing model would result in more satisfied clients and employees. “Instead of sending the first 10 people who walked in the door to a job site, I wanted to spend more time with clients and employees up front to make a better match,” he said. And in the town of Norfolk with a population of less than 25,000, Sandall was not only able to develop a tight relationship with customers, but also keep overhead low.

Actions speak louder than words
From the in-law’s basement, Advance Services has grown to 33 locations across seven states, issuing between 3,000 and 4,500 pay checks every week. According to Sandall, 75% of Advance Services’ business is in the general labor market, its largest customers in the seed corn industry. Because the labor demands in the seed corn industry are heaviest in the summer and fall, Advance Services supplements with customers whose operations peak during the winter, such as animal feed operations and manufacturers. “I call it a marketing orchestrated dance,” Sandall laughed.

He attributes the success of his company to its business model, which is based on the Golden Rule. “How you treat applicants when they walk in the door is how they will treat you, so you have to give them individual attention. Instead of tossing an application at them, we identify the applicant’s needs by engaging them in conversation. It sounds simple, but it can make all the difference.”

Once contract employees are situated, the company doesn’t just disappear. It keeps the relationship strong by interacting frequently—in and out of the office. “We get out there to rub elbows with our contract employees during the week, but we also see them at the grocery store or at church,” Sandall said. “We’ve removed all communication barriers.”

Advance Services also spends plenty of time with customers up front to understand their needs. According to Sandall, the initial analysis goes far beyond how many employees the customer needs and when. “We want to know what product they’re trying to get out the door, what deadline they’re trying to meet, what goals they need to accomplish, and what our role will be, besides supplying people,” he said.

Over the years, Sandall has found that the role Advance Services plays in the client experience now extends far beyond supplying them with qualified contract employees thanks to technology. For instance, the company is able to bill clients in a variety of ways—electronically, via direct mail, by department—whatever helps its customers keep track of their expenses. The company is currently installing software that will enable clients to access their own invoices over the Internet.

For years, Sandall explained, Advance Services operated using modified Excel spreadsheets, but three years ago, it invested in Ultra-Staff software provided by Automated Business Designs. The software allows the company to retrieve real-time information from all 33 offices and relay it directly to customers (as opposed to waiting until the next pay period). “Our clients want to see how the money they are spending with us plays out in their overall investment.”

An ounce of prevention
Since the early 2000s, Advance Services has been providing its contract supplemental employees with 401(k) and group health benefits after 90 days on the job. In fact, it pays half the coverage, and although employees are only charged $5 to $7 a week, the plan covers everything but long-term illnesses. “We felt long-term health insurance wasn’t necessary because assignments don’t typically last longer than a year and a half.”

To keep its cost of services low, the company implemented an injury prevention initiative several years ago. Every staff person is required to receive certification in Advance Services’ proprietary safety program, Front Line Basics. Constant follow up and a rewards program developed in 2000 keep safety at the fore. For every injury-free week, contract employees earn “safety bucks,” which they can use to purchase merchandise, such as T-shirts, hats, and coolers, embellished with the company’s name.

At the same time, it switched from a guaranteed cost program to a high-deductible workers’ comp plan, meaning it has to bear most of the exposure on an injury claim. The difference is that Advance Services treats it like a self-funded program, and as a result, its premiums are low.

In 2008, Sandall expects to roll out a supplemental rewards program, Don’t Gamble With Your Safety. Slot machines (rigged not to pay out cash) will be installed in each location, and when an employee has an injury-free week, he or she receives a coin. Each picture combination corresponds to a “safety bucks” value, which the employee can use to buy merchandise. “We rolled it out in one location as a trial, and people loved it,” Sandall said.

Advance Services’ injury rates are lower than any other staffing company in the region. Some of its clients have adopted similar practices. “We are not always on site, so we can’t manage our contract employees on the job, but we can increase their safety consciousness. We have learned that once an injury has happened, there is very little you can do to reduce the costs. That is why our focus is preventing injuries in the first place.”

 
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