Geographical expansion and the addition of new services have fueled growth for Penmac Staffing Services Inc.
Founded in 1998, the company provides temporary and long-term staffing and human resources services. In 2011, Penmac revenues were $89.5 million, a 15 percent increase from 2010 and up 61 percent compared to 2009.
Working with 140 in-house employees, Penmac has 17,399 associates, and new branch offices are the main factor driving growth, says CEO Paula Adams. The company now has 27 offices in 11 states, according to
Penmac.com.
Cindy Hedgpeth, vice president for operations, says one transaction triggered much of the company’s expansion. About three and a half years ago, a client based in Arkansas asked Penmac to bid on a project, which the company did, winning the contract. That contract led to new business in Georgia, the Carolinas, Tennessee and Wisconsin, Hedgpeth says.
Without physical offices in those states, Penmac worked with local work force centers and did remote recruitment from Springfield, and prospective employees applied and took tests online. An account representative in Springfield screened candidates by phone and set up interviews with human resources offices. Later, Penmac established regional offices to serve the new areas, Hedgpeth says.
Unlike many businesses, Penmac anticipates higher revenues during economic recovery, because as employers gear up, they need more workers but may still be uncertain about long-term, full-time staffing needs, and as a result, turn to staffing companies, Adams says.
“We’re getting more opportunities to bid on bigger contracts. We’re willing to go just about anywhere, any time, if there’s enough business to support that,” says Adams, the daughter of Penmac founder Patti Penny.
In 2010, ownership of Penmac transferred to employees through an employee stock ownership plan, and in January, Penny stepped down from her post as CEO, passing the torch to Adams, who had joined the company in 1995 and was named president in 2006, filling that role until this year.
Successful bidding boils down to three questions, Hedgpeth says, namely who has the best geographic coverage, the most competitive prices and the most services.
References are crucial in the bidding process, and they are a strong suit for Penmac, Hedgpeth notes, with half of its customers having been with the company for more than 10 years.
Looking forward, Adams projects 2012 revenues of $100 million, a goal she believes Penmac can reach by finding innovative ways to attract new customers – people looking for jobs as well as companies that need help with staffing and human resources.
Three new services are emerging as sources for growth, Adams says. With its PenMed division, Penmac has branched out in the health care field to supply medical staff such as certified nursing assistants and licensed practical nurses for hospitals and nursing homes. And its PenTec division focuses on placing associates who can meet information technology needs, serving in roles such as help desk staff.
A third venture, SmartFit, broadens Penmac’s palette of services for all phases of employment, including assessment, personality screening and drug screening.
“We’re trying to fulfill as many needs as we can within one umbrella,” Adams says.
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