Pilot project tries wage employment outsourcing
Spectrum Volume 18 Issue 18 - January 25, 1996
Personnel Services is conducting a pilot project examining the effectiveness of outside temporary employment agencies as a resource-saving mechanism. Virginia Tech began exploring the use of outside temporary agencies earlier this year as part of the university restructuring and process improvement initiatives. The delays our departments experience awaiting approval under the state hiring freeze and the amount of resources the university expends during wage employment processes were two factors also associated with this decision.
Virginia Tech has entered into a contract with the following local temporary-employment agencies: Adia, Bright, Kelly, Manpower, Norrell, Southern, and Western. This contract contains 54 frequently used job titles in areas such as office services/secretarial, program support, fiscal techician/assistant, housekeeping, food service, grounds, skilled crafts, and storekeeping. Based on the requests for temporary wage employment, additional titles may be added as needed.
Advantages for participating departments include the elimination of time-card processing, exemption from the 1,500-hour restriction, elimination of state hiring-exemption approval for Educational- and General-funded wage positions, and expedited filling of vacant positions (usually within 72 hours). Additionally, the temporary agencies are responsible for all payroll taxes including unemployment insurance, worker's compensation, payroll reports, and other federal and state requirements.
Various benefits are provided to employees such as vacation and holiday pay, medical/life insurance, and performance and referral bonuses, depending upon the agency awarded the contract. The exemption from some state mandates should provide additional employment opportunities and/or work hours.
Using a temporary agency will provide both time and financial savings for the university, freeing resources that may be reallocated to other tasks. The goal is to establish a more efficient, flexible, and decentralized process for wage employment. Departmental participation is voluntary; however, Personnel Services is currently working with a number of departments to implement this option to the current wage-employment process.
For more information about this service, please call Muriel Flynn, human resources manager, at 1-5301.