| Staff Force: Labor Crunch |
| Professional Services | |||
| Written by John Zorabedian | |||
| Thursday, 01 May 2008 | |||
 David Howard leads this industrial and clerical staffing company at a time when demand is high and the immigration question looms.
 David Howard, President Through the government’s e-verify program initiated last August, SFI verifies employment eligibility of the company’s workforce. SFI joined the government program during its pilot phase over three years ago, which Howard said may have hurt business slightly against competitors that don’t verify immigration status as closely. “It’s probably hurt our business a little bit because a lot of our competitors don’t use it,” Howard said. “They hire anyone that’s out there. But we make sure we’re sending out an employee that is legally eligible to work in the United States. I’m not saying we’re perfect, but this e-verify system not only protects us, it also protects our clients.” That’s the point Howard hopes more employers will pick up on as the threat of heavy government fines for hiring illegal workers trickles down. SFI’s competitive strategy is to mitigate that risk for employers, as well as protecting employers from workers’ compensation claims in the industrial sector. Howard said his company’s value to employers comes as a way to outsource risk in the hiring process—and the whole process of performing background checks and immigration status that have added pressure on human resource departments everywhere. Workers’ comp The US staffing industry grew by 6.2% in 2006 to sales of $87 billion, according to the American Staffing Association (ASA), about twice the growth rate of the overall economy. The ASA projects that the staffing industry will add more than 1.5 million jobs by 2014, the most of any industry. One reason why staffing firms are experiencing such great expansion is the ability of temporary employees to give companies flexibility in their work force to meet fluctuating demands and quickly add workers during times of expansion. In the manufacturing sector, which the ASA projects will add about 250,000 jobs through staffing companies by 2014, outsourcing to a staffing company can also reduce costly workers’ compensation claims. SFI is Workers’ Compensation Risk certified (WRC) by Risk Control Services, a third-party monitoring organization, as a provider of safe working environments. “We also work with the clients to make sure they have a safe environment for their own people,” Howard said. “We do that as an added service, a risk management program for all clients.” Howard said he strenuously avoids what he calls “predator” employers and employees—those that employ practices or workers that could lead to workers’ compensation claims through unsafe working conditions or fraudulent claims. “A predator can be a client that takes advantage of us or an employee that goes out there and fakes an injury,” Howard said. “We have a strong risk management program. We take care of our employees.” That risk management also includes certified forklift training for employees and thorough background checks to protect employers and SFI. For many potential clients, that is a big source of relief, Howard said. “They just don’t want to fool with writing the payroll checks, or they want us to carry the workers’ comp,” he said. “That takes a bit of the payroll headache away from them.” Permanent placement SFI recently launched a permanent placement division at its Houston headquarters and in Dallas to augment its temporary placement services. Howard said this move will help SFI service big clients in healthcare, nursing, and other professional jobs. Howard has gradually worked up the staffing industry’s chain from no-collar hard labor, to blue-collar light industrial, clerical, and skills and trades. Howard got his start in the staffing industry in 1977 by working for a manual labor company called Peak Load. “When you’re helping people find jobs, it’s a rewarding industry and is good for the economics of our state,” Howard said. “The industry has produced thousands of jobs across the state. We provide a bridge for employment for people who want to work.” And although the challenge of a labor crunch has led some employers to use unscrupulous or even illegal means to hire workers, Howard said SFI always strives to do the right and ethical thing. As a past president of the Texas Association of Staffing, Howard said the industry group looks to protect its members from unfair laws, but at the same time as it seeks to protect workers from predatory environments. “When you’re part of the Texas Association of Staffing and the American Staff Association, you do things ethically, and you take care of your people and your clients,” he said. |
|||
| < Previous Story | Next Story > |
|---|
© 2008 American Executive - RedCoat Publishing. All rights reserved.
American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
