Show me the Money!

Learn the truth about how staffing agencies are paid.

“How do temp agencies make money?” “Do I have to pay a fee to work for a staffing company?” “Why don’t I make more money?” You might have been wondering these things yourself. At Penmac Staffing, we hear these questions a lot, so we thought we would take the opportunity to talk about how staffing works. There are common misconceptions that staffing agencies don’t pay employees well, and that they deduct money from employee paychecks—but the truth is very different.


A widespread myth about the staffing industry is that employees only make minimum wage. In reality, Penmac offers a variety of positions in many different industries, each with a different salary, depending on the job and its requirements. While some jobs are entry level and may not pay as much as more experienced positions, they offer employees a good opportunity for associates to gain experience so they can eventually move into a higher paying position. Actually, 43% of current Penmac employees make over $10/hour. Minimum wage in Springfield, MO, where Penmac’s headquarters is located, is $7.65/hour, and the living wage, the amount an individual needs to earn to realistically make ends meet, is $9.30/hour.


So, how do staffing agencies get paid? Penmac’s goal is simple—we want to bring job seekers and employers together. We help job seekers by learning about their skills and schedule, and finding them a position to meet their needs. Job seekers are never charged a fee. Penmac helps businesses by taking care of the hiring process, payroll, benefits, unemployment insurance, and other HR tasks. The business pays the staffing company a fee to take care of these administration responsibilities. Penmac pays its workers according to industry averages, so a forklift operator, for instance, would make approximately the same salary whether they work directly for a business, or work through a staffing company.


Even with this information, you might still be wondering, “How can I make more money?” Regardless of if you work through a staffing agency, or directly for a business, there are a few things that might help you increase your wages. Depending on the industry you work in, you could get more training to further your understanding of a job. Typically, the more knowledge and skills you have, the more skilled position you will be able to find. These positions normally pay more. Similarly, invest in your education. Go back to school to gain new certifications, degrees, or licenses. These new qualifications could make you eligible for a pay raise. If you’re not in a position to pursue more training or schooling, staying at a job for a long time is a good way to prove your loyalty and gain your experience, which could result in a promotion down the road. Being reliable and having a good attitude in an entry-level position will benefit you in the long-term, when supervisors are considering promotions.


If you have any questions about Penmac in particular, or the staffing industry in general, feel free to contact a staffing specialist in your area today.