As labor day 1995 approaches, corporate executives say over 4 in 10 new hires lack basic skills; Olsten survey says skill shortages raising business costs, hampering communications, reengineering, expansion and product/service quality.

MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 31, 1995--As Americans prepare to celebrate the Labor Day holiday, a new Olsten Corp. study of human resource executives reveals that more than 4 in 10 (43 percent) new hires are in need of basic skill enhancements, as are nearly 4 in 10 (37 percent) current employees.

According to the survey of more than 300 North American executives, nearly 7 out of 10 (68 percent) corporations say growing skill shortages in the labor force are raising costs and hampering internal communications, reengineering and expansion plans, and the maintenance of product and service quality standards.

These and other findings are disclosed in the just released survey, "Managing and Developing the New Workforce," the 1995 Olsten Forum(TM) on Human Resource Issues and Trends, sponsored by Olsten Staffing Services, a subsidiary of Olsten corp. and one of the world's leading staffing services providers. This latest survey probes attitudes on workforce skill levels, as well as diversity and training issues and trends.

Nearly 7 in 10 (68 percent) of the respondents also said their companies had experienced increased demand for workers with basic skills over the past year. Among companies citing problems created by skill shortages, more than half (53 percent) said such shortages had resulted in increased training, recruiting or hiring costs, while 31 percent reported communication problems, 21 percent cited difficulties in implementing reengineering and reorganization initiatives, and 17 percent reported product and service quality problems resulting from a lack of workplace literacy skills.

Despite the acute demand for basic skills, the survey reports that companies have scaled back on their training. The respondents say that, with the exception of writing skills, training in critical areas--including computer skills--has remained unchanged or declined in the past year.

"Training for our workers must become a national priority," said Gordon Bingham, senior vice president of Olsten Staffing Services. "As technology advances and the workplace becomes even more automated, businesses needs a productive workforce with better skills to meet increasing global competition. North American businesses today are looking to companies such as Olsten to provide state-of-the-art computer training for programs such as Windows 95, so that temporary assignment employees are ready to hit the ground running and make real contributions when they report to work for our clients."

The 1995 Olsten Forum(TM) on Human Resource Issues and Trends also reveals that:

o More than half (58 percent) of human resource executives report

low levels of diversity in their management ranks.

o More than 3 in 4 (80 percent) corporations predict the diversity

of their workforce will increase by the year 2000, and almost 7

in 10 (68 percent) predict the diversity of their management will

increase as well by that time.

o Contrary to common perceptions, the success of most diversity

efforts occurs outside the scope of government mandates. Less

than one-fifth (14 percent) of the respondents say that

government mandates have dictated changes in the composition of

their workforces.

Olsten Corp.-- in addition to being a world leader in staffing services -- is North America's largest provider of home health care and related services. Through its operating units -- Olsten Staffing Services, Olsten Kimberly QualityCare, Office Angels, IMI Systems, Norsk Personal, Ward Associates and ASB Meditest -- the company has a network of more than 1,200 offices in the United States, Canada, Mexico, Great Britain, Norway and Denmark, providing assignment employees to business, industry and government, caregivers for home health care, institutions and occupational health services.

In 1994, Olsten Corp. employed over 650,000 people and provided services to more than 500,000 client/patient accounts. The company reported 1994 systemwide sales of nearly $2.6 billion and revenues of nearly $2.3 billion.

Olsten Staffing Services provides assignment employees in more than 300 skill categories for office automation, general office and administrative services, accounting, legal and paralegal services, technical services, production/distribution/assembly services, records management, marketing support and teleservices. The company also provides managed services to more than 200 major corporate accounts as part of its Partnership Program(SM) services, under which Olsten recruits, trains and manages large groups of employees, allowing clients to better focus on their core businesses.

Survey Methodology The survey includes human resources executives of a broad spectrum of North American businesses. Surveys were distributed by mail during June 1995 and 316 responses were received. The survey was conducted for Olsten Corp. by McKendrick & Assoc., an independent research firm.

CONTACT: Middleberg & Associates, New York 

Dan Manco/Lori Rabenou 212/888-6610