Nevertheless, Kristi Inkinen and Marie Kumabe charged ahead with their planned venture: Remedy Intelligent Staffing, a local staffing and employment agency. Even though the Remedy franchise had existed in Hawaii before, Inkinen and Kumabe were starting from scratch with a new franchise agreement. At present, there are no other Remedy franchises in Hawaii.

The business grew slowly at first — January sales totaled $2,300. Then Inkinen and Kumabe saw their venture take off, surpassing the break-even point and generating $350,000 in sales in less than a year.

Remedy is not alone in the profitable staffing-services industry. Local businesses, big and small, find it more economical to hire part-time and full-time employees through a staffing and employment agency than working through their own human resources departments. And the tougher economic conditions have only accelerated the trend.

Staffing agencies offer employers help with finding personnel for long-term employment positions, temporary-to-permanent-hire posts and direct permanent hires. Among these, the strongest niche is hiring temporary workers from an agency on 90-day probation with an option to offer permanent employment at the end of the term.

"It's a win-win situation for both parties," said Mary Patte, president of Staffing Solutions, another local agency. "The concept was strong before Sept. 11, but after that we've seen more and more companies going for it. Companies these days are not sure of what the future is going to bring."

This segment of her business brought Patte's company almost 70 percent of its $4.6 million revenue in 2001.

The arrangement also benefits the temporary worker, who has a chance to check out the company's work atmosphere first hand.

"It's more than helping the client company," Patte said. "Now it's making both clients happy — the company and the associate [temporary worker]."

Remedy tests applicants in both hard skills and work habits to determine appropriate fits with work environments. The company uses a proprietary testing application that detects an applicant's personality traits and determines suitable work environment.

"Everyone interviews well," Inkinen said. "Only when you hire someone do you see their true colors. Through our application we test environmental and cultural fit, determine what their personality is like — whether they are an independent or a team worker. These are things you cannot see for yourself from just an interview."

Despite such intensive testing, which usually lasts at least half a day, if things don't work out both employer and temp can opt out. And the agency will send a replacement.

All this service comes at no upfront cost to temporary workers registered with the agency. Once a temporary worker is hired, the company adds a $6 to $7 per hour service rate for a $10 per hour employee. The service rate covers health insurance, benefits and payment to the staffing agency. Technically, the temporary worker remains an employee of the staffing agency and is on the agency's payroll.

Hawaii's strong military presence offers business opportunities for staffing agencies as well. Companies doing government or military contracts find that they need additional staff for the contract period, and staffing agencies step in to meet their demand. The work might be anywhere from six months to a year, Patte of Staffing Solutions said.

"This is growing to be quite big," she said. "It's at 10 percent of our business right now and growing."

The past year has brought some changes and losses to staffing agencies. Staffing Solutions lost nearly $1 million in revenue when it decided to walk out of the light-industrial segment. The airlines were its primary client in that segment.

"We made a business decision after Sept. 11 to close that division," Patte said. "Overnight, we had 50 temps who were released and more who were likely to be let off from work. Workers' compensation was the main reason for the decision; it was too expensive."

However, other agencies are swooping in to try and gain some of those lost contracts as airlines say they are making up staff numbers to pre-Sept. 11 levels. Remedy, for one, is courting these clients.

Patte, who has run her own staffing agency for more than a decade, has other strategies up her sleeve.

"I'm going to be working in an area that I've always believed in — professional placement from clerical to upper management. Our core business will be permanent hire either directly or as temporary to permanent hire."

She estimates that her company will recover to reach the $5 million mark next year. 


                                    Recruiter Champions Work Of Others

Marie Kumabe says the best job is helping people find theirs.My partner, Kristi Inkinen, and I opened a staffing agency last November. With two children to raise and a good job at the University of Hawaii's School of Travel Industry Mangement, I had to ask myself the same question facing all fledgling small-business owners: Do I want to accept the challenge, stress, risk, and uncertainty?

Eight months later, I'm glad I took the leap. I have the best job in the world: I get to help people find the right jobs for themselves.

When I was head of human resources for American Hawaii Cruises some time ago, I thought I had the best job because I could help people—even if only within the confines of that company. Now, as a partner in Remedy Intelligent Staffing, I have access to positions at all types of companies and can offer them to those who've come to me for assistance.

If job seekers know exactly where they want to work, I can help them get a foot in the door at that firm. If they're interested in a particular industry or field, I can be their champion and use my contacts to promote their backgrounds and credentials to decision-makers. If they simply want advice, I can counsel them on the most appropriate career paths.

Sometimes I get to be a cheerleader and restore confidence in someone who may have lost a job through no fault of his or her own. At other times, I have the opportunity to work with recent graduates who are brimming with enthusiasm and hope about the future. I'm candid in giving feedback on interviewing skills or a resume that doesn't do justice to one's skills. I meet people with all kinds of experience, education and backgrounds, but who all share the desire to work for an organization that will value them and offer them a chance to shine. They're willing to work hard if given this chance.

By working with all types of individuals, I feel I'm able to recognize a "gem" of an employee. In addition, proficiency tests and assessments allow me to sharpen my "sixth sense" in perfectly matching an employer and employee. I also have the chance to help employers of all sizes and in all industries, who are overwhelmed with resumes and need assistance in streamlining their hiring process.

A career is one of the most important aspects of one's life, and every day I help people get to where they want to go.

Founded in 1965, Remedy Intelligent Staffing is a nationwide full-service staffing organization and a top 10 industry leader focused on delivering Human Capital Workforce Solutions in the areas of business services, hospitality, manufacturing, and information technology.

Remedy Intelligent Staffing is part of the independently-owned Select Family of Staffing Companies fully prepared to assist you in providing a highly skilled workforce for your organization.