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To Avoid Layoffs, Companies Lend Away Staff

As an alternative to handing out pink slips, some companies are choosing instead to lend members of their staff to other companies—including competitors.

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Don't cut staff—lend them away during slow periods.

That's the aim of a British pilot program launched this month from
not-for-profit Work Wise UK. Called
StaffShare , it's
essentially an online swap shop where businesses can offer up
employees for short- and medium-term loan.

"Instead of losing trained, skilled employees during a period of
economic adjustment, businesses can offer these skills to charitable
and other organizations," says Phil Flaxton, Work Wise's chief
executive. StaffShare was launched exclusively for charities six
months ago, and success—90 charities registered, including giants
such as Save the Children and WaterAid—prompted it to open its
doors to everyone.

How it works: On the StaffShare website the "seller" company lists the
employee's skills, daily rate, and availability. The cost is £50 (roughly $81.70) a
year per candidate. The "buyer" company searches the database, uses
the website's message system to vet candidates and iron out
details with the seller, and then a contract is sent
electronically. The buyer company pays a 7.5 percent commission to StaffShare to help cover
its operating costs.

A conversation two-and-a-half years ago—so, pre-recession—with British
Telecom and a handful of banks prompted Work Wise to pioneer its pink
slip alternative, which has been in development since then.

"The companies had these redeployment pools of 1,000 people who needed
to find other work within the company," Flaxton says. "So we thought,
'What if there was a service where they could find it at another
company?'"

He has high hopes the initiative will benefit small businesses. "One small or
medium enterprise has employees whose skills it doesn't want to lose
permanently, and maybe another business can't afford the salary that some
of these people can command on a fulltime basis, but they can borrow
it for a few weeks or months," Flaxton says. (He admits fear of
fulltime talent-poaching is an issue, with companies saying they will
prevent their staff from working for direct competitors.)

StaffShare isn't alone in the British talent-trade. Tiga, the British trade association for the computer
gaming industry, in September launched a free
program called Industry Sharing, which allows for employers to share talent. (Tiga's rules also attempt to prohibit talent pilfering.) Tiga spokeswoman Eva Field says
Industry Sharing grew out of a grant from the National Endowment for
Science, Technology and the Arts, a British innovation nonprofit, to help
stop brain drain from the country.

In the game development life cycle, there's often a group of artists
sitting idle while a new game is being tested, or a big company suddenly
will get a big project and need to staff it quickly, but only for a
couple of weeks.

"Outsourcing has its own issues and it can be expensive to recruit
staff," Field says. She wouldn't give usage statistics, but said in
December a member company found 20 workers it needed and had
them working—"bums on seats," she says—within two weeks. "They
were amazed with how much money and time they saved," she added.