About the Sector


ASOs have a dual mission to deliver value to their customers and promote workplace success for people with obstacles to employment. As a business service, ASOs help employers attract and retain reliable, motivated entry-level workers. For job seekers, ASOs provide a link to stable workforce participation and increased self-sufficiency through intense supportive services and a long-term commitment to workers’ success.

The use of temporary staffing services as a vehicle to access employment opportunities for disenfranchised residents began in 1970 with the founding of Just Jobs (now Harborquest) in inner city Chicago. Since then, scores of alternative staffing programs have been established throughout the US. Many were launched in the late nineties as a response to welfare reform during a time when the nation’s booming economy and low unemployment favored market entry. The effectiveness of the alternative staffing model continues to attract new entrants to the field.

While ASOs vary in their organizational structures and the populations they seek to serve, they have two common characteristics. First, all are deeply rooted in their respective communities, giving them a keen understanding of the landscape and enabling them to leverage local connections and resources. Second, all share a market-based approach to delivering staffing services.

The growth of the alternative staffing sector mirrors that of the conventional temporary help industry. Temporary employment sales grew rapidly during the nineties, driven by increased corporate interest in outsourcing and growth in the overall economy. Temporary and contract staffing sales are now a $70 billion industry. However, despite its scale and vigor, the temporary help industry makes only limited effort to serve the low-skilled end of the labor market. As profit-driven businesses, conventional staffing companies tend to focus on supplying higher-skilled positions that command higher profit margins. The greater amount of time needed to coach low-skilled, inexperienced workers also acts as a disincentive for commission-based recruiters to serve this segment of the workforce. ASOs address this market “failure,” supplying and managing reliable, motivated workers in entry-level positions, and enabling low-skilled, inexperienced and otherwise challenged workers to turn temporary employment opportunities to their advantage.

Alternative Staffing At-A-Glance

Advantages of Alternative Staffing