The last few years have been good for providers of temporary and contract workers.
Many companies have been growing and needed help, but given the uncertain nature of the global economy, they have been reluctant to add many full-time workers.
It's then no surprise that Kelly Services (KELYA) , one of the world's leading temporary staffing firms , has thrived. The Troy, Mich.-based company's stock price has risen more than 26% over the past year. Kelly has achieved strong growth in Asia and Europe. Parts of the latter market have traditionally relied more heavily on temp workers than the U.S.
Kelly also stands to benefit from a U.S. Labor Department update on regulations for white collar workers' overtime pay. Workers earning less than $47,476 are now eligible for time-and-a-half wages for every hour worked past 40 hours. That could make 4.2 million more salaried workers eligible for overtime pay. That's good for them, but it also represents an added cost for businesses.
At a time like this, it's best to go for guaranteed returns.