Alternative staffing wages align closely with living wage rates

Jan 12, 2017 No Comments by

Alternative staffing organizations (ASOs) strive to access quality jobs for the candidates they place, and consider wage rates, safety practices, and opportunities for training and advancement in assessing and targeting prospective business clients. Through our annual performance survey, we regularly track hourly wages rates paid to ASO employees as a key measure of fulfilling this goal.

For our most recent reporting period, the alternative staffing sector’s median “average wage” rate is $11.25. This includes operating results for fiscal years ending September 30, 2015 through June 30, 2016.

To provide greater context for this number and better understand the “quality” of ASOs’ pay rates, we went a step further, comparing the average hourly wages reported by our 2015 survey respondents with their respective metro areas’ living wage for a single adult. “Living wage” refers to the wage rate required to meet minimum standards of living in a given community.

The results were very affirming! Within our sample of 18 ASOs supplying wage data, the average and median wage rate paid to workers was 98.5% of the living wage for a single adult. Individual ASO wage rates as a percentage of their local living wage rates ranged from 85% to 123%.

Living wages increase with family size, so these results represent a comparison with the baseline figure only. Please visit the Massachusetts Institute of Technology’s Living Wage Calculator to find more details.

We celebrate ASOs’ commitment to quality employment including wage scales that help entry-level workers achieve greater economic security, and benefit employers through higher employee retention and productivity.

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