Microtech Staffing Group Celebrates 20th Anniversary

Quincy Firm Survives Recessions, Dot-Com Bust to Emerge As Temporary Help Leader

Quincy, Mass (6-15-05)--It was 20 years ago this month that Hingham resident Joseph Donahue, president of Quincy-based Microtech Staffing Group, decided to play out his hunch Working from the basement of his mother's house in Waltham, Donahue invested his life savings into opening a staffing business that he hoped could compete in the often cutthroat world of temporary help

It was an experiment that almost failed

Faced with stiff competition from the established firms such as Manpower and Kelly Services Inc, his struggles forced him to carve out a niche in the then nascent high-tech sector that others had not yet tapped, and reach out to businesses that his competitors had chosen to ignore Barely surviving his first year with a net profit of only $600, he continued to gain clients in fledgling companies such as EMC and Medtronics, while growing a list of temporary employees to connect with businesses in need of temporary help

Through perseverance and luck he survived, reaching $500,000 in sales within two years and $1million by 1992 He grew during the tech boom years, diversified into other markets after the dot-com bust, survived a major recession and eventually expanded into professional services to meet the demand for temporary employees

Today, his company has emerged as a regional leader in the recruiting industry generating sales of $35 million annually With an average of 1,200 temps supplied daily, his is one of the largest full-service staffing agencies in New England He has placed more than 50,000 temps since his company's inception in 1985, including 4,600 in 2004-2005, and has made millionaires of many former temps including four he placed permanently at EMC 20 years ago

"I knew that if we found good workers, stayed flexible and serviced our clients well, we could build a business here," says Donahue "Given the economy and the ever-changing landscape of Massachusetts business, I am proud of what we have accomplished and of the people and firms that we have helped along the way"

The son of Irish Immigrants and a "Double-Eagle" graduate of BC High ('74) and Boston College ('78), Donahue worked as an operations manager at Honeywell from 1978-1983, eventually pursuing an MBA at Babson College In 1983 he left Honeywell to become an operations consultant at a now defunct firm called QSC, before venturing out on his own with Microtech in 1985

"I am not at all surprised that Joe Donahue has enjoyed great success in his 20 years with Microtech" says Pat Sullivan, director of human resources at Smith & Nephew, a medical device manufacturing firm in Andover that has been a Microtech client for nearly two decades "He is a very dedicated worker who is honest and ethical and who delivers on all of his promises I always admired how devoted he was to his family, especially his mother whom he employed from the dark days until her death last year He is a person who places family and loyalty above all else I admire him greatly"

Longtime employee James Fennessy, whom Donahue hired as a 22-year old recent college grad in 1993, says Donahue's gift is his ability to see possibility in people and in businesses before anyone else "What has kept me working at Microtech is Joe Donahue and the invaluable lessons I have learned from watching him," says Fennessy "He is a brilliant businessman and a natural leader who possesses an innate business sense that goes beyond our specific industry I have learned more from him than from all of my undergrad and MBA studies"

In the wake of the high-tech job exodus that has seen 100,000 jobs leave the state, Donahue is now intent on transforming a firm that once specialized in high tech, engineering and light industry to branch out to accounting, education, financial services and healthcare

"It is constantly a challenge to find new opportunities in a state that that has not yet rebounded from the 2001 recession," says Donahue, (Massachusetts created less than 1,300 jobs in 2004 according to state records) "but in this business you have to adapt to survive We are actively recruiting talented professionals to place in the financial and professional service fields and are reaching out to employers to meet their own evolving needs The positive result of the downturn is that we have extremely talented and experienced temporary workers with expertise in these fields who are eager to be placed The climate has never been better for companies in need of temporary help"

Donahue's confidence reflects a growing optimism in the US staffing industry Last year, annual sales were up 124% to a total of $15 8 billion according to the American Staffing Association, with America's staffing companies hiring an estimated 117 million temporary and contract employees, an increase of 1 million from the year before Analysts expect a continued upswing in 2005

With offices in Quincy, Woburn, Medway, Danvers and Londonderry, New Hampshire, Donahue hopes to expand his business this year into Boston-Cambridge, Worcester and Rhode Island where, he calculates, there are a total of 27 million jobs With 2% of all jobs being held by temporary workers, he sees a potential market with 54,000 annual placements, enough to help his temporary workers busy throughout the new decade If Microtech can manage its current market share in these new markets, he predicts revenues of $75 million within three years, challenging TAC as the largest private staffing company in New England

In addition to his company's growth and longevity, Donahue takes pride in the fact that he has helped nearly one third of his former temporary employees land permanent positions It is an issue that is close to the heart of the Jesuit-educated businessman "It is always a point of pride when a company wants to permanently hire one of your temporary staffers," says Donahue His commitment to social justice concerns also guides his philanthropic endeavors "I believe that education is the great equalizer and I have committed myself to helping Jesuit schools like BC High and Nativity Prep provide financial assistance to needy but talented students from urban areas," says Donahue, who is in his second stint as trustee at BC High

"We are taught to whom much has been given, much is expected, and I have always tried to make that philosophy a guiding principle in my life

Looking back on a business whose former clients include Digital, Wang, Polaroid and a slew of other now defunct high-tech firms, Donahue realizes that success can be fast-fleeting and remains only for those who adapt with the times "We have enjoyed a renaissance in Quincy and feel confident that our business plan positions us to succeed in our new target areas," says Donahue "But we have to be ever vigilant and always ready to embrace new opportunities With flexibility, hard work and some luck, I know the next 20 years look bright for Microtech"