Member Profiles
Gerard Salvo, President
CEI Staffing Services, Inc. (CSSI)
Portland, Maine
Year program began: 2004
Program sponsor: Coastal Enterprises Inc. (CEI)
Jobseekers placed last year: 175 (30 on CSSI payroll)
CEI Staffing Services, Inc. (CSSI) is a nonprofit subsidiary of Coastal Enterprises Inc, a community development corporation and Community Development Financial Institution that does extensive lending and venture capital financing in Maine, northern New England and upstate New York. As part of its sustainable development mission, Coastal Enterprises uses a “3E” approach that considers the economic, equity and environmental outcomes of these investments. CSSI plays a central role in helping borrowers address the equity goal, which typically involves their commitment to make new job opportunities available to low-income and other jobseekers with barriers to employment.
We spoke with CSSI president Gerard Salvo, who described their staffing and other workforce development activities, including their use of Employment Training Agreements (ETAGs) to increase access to jobs in exchange for companies’ access to capital.
How does the ETAG process work?
When a loan or equity investment is being considered, we assess the borrower’s job creation opportunities and job quality as part of the due diligence process. We look at the range of jobs available, educational and skill levels required, wages and wage progressions, advancement opportunities, and projections of new job creation. We also consider the company’s human resource practices, including the quality of the benefits package, nature of personnel policies, training provided for the workforce, and safety of the work environment. We’re particularly interested in employment opportunities that lead to skills development, livable wages, advancement opportunities, asset building and self-sufficiency over time.
Based on our review, we help set terms for the ETAG, which is part of the loan closing documents. Typically a business will agree to notify us as new job openings occur, work with us and our job training partners to recruit and hire low-income and other disadvantaged residents, and provide new hires with a standard employee benefits package, including health insurance. In cases when a borrower is unlikely to create new jobs or the jobs are highly skilled or specialized, the company can fulfill its equity goal by participating in workforce education workshops, providing opportunities for job shadowing and other similar activities.
What is CSSI’s role after a loan or equity investment is made?
When ETAG businesses have job openings, we notify our network of 75 workforce development agencies. Job notices go out weekly and the listings are “blind,” with the company confidential. We receive applicants’ resumes and forward them to the employers, and maintain a database of companies, job openings and placements. We also broker training resources, apprenticeship program services and mentorship supports available to employers for individuals referred through this network of service providers.
What volume of jobs do you typically post and fill?
In the most recent quarter, we posted 81 jobs and filled 16 of them. Companies do not pay us placement fees for this service as it is currently part of the ETAG agreement. We do receive mark-up fees for temp and temp-to-hire staffing arrangements and are currently exploring additional fee-for-service options. Overall, about 60% of the listings come from ETAGs, and the rest are from other CEI loans. Roughly one-third of the 300 companies in Coastal Enterprises’ loan portfolio have job activity during the course of the year. In Maine, we serve 60 to 80 companies.
What types of employers do you serve?
We serve a broad range of companies – business service companies, retailers, manufacturing and food-related businesses. Most of our ETAG companies are small, in the 8 to 25 employee range, and none are bigger than a hundred employees. This is very common in Maine and requires very strong relationship building.
What jobseeker population do you serve?
We place and support welfare recipients, people with disabilities and individuals with other barriers to employment, such as limited English ability or lack of work history. Both Portland and Lewiston are home to large immigrant communities. We most recently operated Work Ready classes for Portland community refugees and obtained a 50% job placement rate for the graduates. We also provide job coaching and job supports for individuals with disabilities.
Where does staffing fit within your array of workforce development services?
When CSSI was founded, we became CARF accredited (certified to deliver rehabilitation services) and contracted with several private sector companies to staff positions within their organizations, placing people with disabilities and using a managed work services model that provides on-site coaching and employee supervision. Fees paid by our business subscribers covered about half the cost for this service, and state programs (mainly Vocational Rehab) covered the other half. Over time, some individuals transitioned onto the payroll of our subscriber customers or got jobs at other companies. We continue to serve one contract subscriber – TD Banknorth, the state’s largest bank – with 30 individuals on our payroll.
What are the biggest challenges of operating a staffing service in your market?
State Vocational Rehab and Health and Human Services department staff continue to resist transitional and temporary employment as acceptable employment for their clients. Without these referrals, it’s been difficult to maintain a sufficient size labor pool to deliver staffing services at any kind of scale. We post and advertise open positions for our ETAG companies but do not currently have the resources to fully screen and test job applicants.
What other workforce development services do you provide?
As a major initiative to support our ETAG activities, our Workforce Solutions group has worked closely with employers and the state’s One-Stop system to develop two training programs – a 5 week Work Ready program (60 hrs), followed by a 6-8 week Next Steps skills training program targeted to specific job opportunities in customer service, machine tools technology, marine trades, office/clerical and food service. The Next Steps training is about 90 hours total and includes employer presentations and workplace tours. The training was piloted in Lewiston and has been trademarked for expansion statewide.
What are CSSI’s main goals for the future?
Coastal Enterprises, including our Workforce Solutions group, is currently going through a comprehensive strategic planning process which will help us figure out our focus going forward. Within our group, we’re considering ways we can make staffing more integral to all of our workforce development activities. We’re also examining the issues of geographic service area and target population. CEI is moving toward regional service areas and new loan and venture investments out-of-state.
As a manager, what do you wish you had more time for?
It’s hard to maintain a good balance between doing the work and taking time to focus on planning and business growth.
What advice would you offer to someone considering alternative staffing as a strategy in their community?
Be strategic and understand your market, including the supply side to ensure you have a sufficient level of worker referrals. Operating a staffing service requires a lot of planning, including financial modeling … invest the time to do this.
NOTE: Coastal Enterprises closed its Staffing Services program at the end of 2008, but continues to act as a workforce intermediary and provide human resources support for CEI-financed businesses in Maine and New England. To learn more about CEI’s workforce development activities, please visit www.ceimaine.org/content/view/39/80/
