Pricing Models
Temporary Staffing
Short-term workers placed for specific assignments. You pay the agency a bill rate that includes worker pay, taxes, benefits, and agency markup (40–80% above pay rate).
Best for: Seasonal peaks, project coverage, long-term absence coverage, and "try before you hire" scenarios.
Temp-to-Hire
Temporary assignment with intent to convert to permanent after a trial period (90–180 days). Conversion fee of 10–15% of annual salary.
Best for: Risk-averse hiring of roles where cultural and performance fit are hard to assess in an interview.
Direct Hire (Contract-to-Perm)
Agency identifies and places permanent employees; fee is 15–20% of first-year salary paid at placement.
Best for: Volume hiring programs and roles where long-term tenure is important.
Managed Staffing (MSP)
A Managed Service Provider manages all your contingent workforce across multiple staffing vendors. Charged as a flat fee or % of total contingent spend.
Best for: Large organizations spending $1M+/year on contingent labor who want consolidated vendor management.
Service Tiers
Light Industrial / Admin
$18–$28/hr bill rate
Administrative assistants, data entry, warehouse, and light manufacturing placements.
- Rapid placement (24–72 hours)
- Pre-screened and background-checked candidates
- Payroll and tax management handled
- Workers' comp coverage included
- Flexible assignment length
Professional / Technical
$35–$65/hr bill rate
IT, accounting, HR, marketing, and professional services temporary placements.
- Skill-tested professional candidates
- Resume screening and technical assessment
- Benefits during assignment
- 10–15% direct hire conversion fee
- Replacement within 5 business days if needed
IT / Specialized
$65–$150+/hr bill rate
Software developers, data scientists, project managers, and specialized IT professionals.
- Technical screening by domain experts
- W2 employment or corp-to-corp contracting
- Project and contract durations from 3–24 months
- Security clearance verification if required
- On-site or remote placement options
What Drives the Cost?
Role Category
Light industrial roles have lower bill rates and margins; professional and IT roles have higher bill rates and lower percentage markups due to worker pay level.
Assignment Length
Longer assignments (6–12 months) often qualify for volume pricing negotiations. Short-notice or very short (under 2 weeks) assignments may have premium rates.
Volume
Placing 20+ workers/month with a single agency typically earns negotiated markup reductions of 5–15% from standard rates.
Geographic Market
Staffing in high-cost-of-living markets (NY, SF, Boston) has higher worker pay rates but similar markup percentages — total bill rate is higher.
Specialized Skills
Niche technical skills (SAP, cybersecurity, RN nurses, licensed engineers) command higher worker pay rates and sometimes higher markups.
Conversion Timing
Converting a temp to permanent before the agreed trial period triggers a full direct placement fee; after the trial period, many agencies offer reduced or waived conversion fees.
Rates by Location
| Region | Rate |
|---|---|
| 🇺🇸United States | Varies by role |
| 🇮🇳India | $15–$50/hr (IT roles) |
| 🇵🇭Philippines | $8–$25/hr |
| 🇵🇱Eastern Europe | $20–$60/hr (IT) |
| 🇲🇽Latin America | $15–$45/hr |
Pricing FAQ
What is a typical staffing agency markup rate?
For office/administrative roles: 40–60% markup above worker pay. For professional roles (IT, accounting, legal): 25–40%. For light industrial: 40–70%. On a worker earning $20/hour, a 50% markup means you're billed $30/hour. The markup covers employer taxes (FICA, FUTA), workers' comp insurance, benefits, and agency profit margin.
How do I compare staffing agency rates?
Ask each agency for their "all-in bill rate" for a specific role level and location, and clarify what's included (benefits, workers' comp, management fee). Normalize to a markup percentage: (bill rate - worker pay rate) / worker pay rate. Cheapest markup doesn't mean best value — quality of candidate pool matters more.
When should I use a staffing agency vs. hiring direct?
Staffing agencies justify their premium when you need: speed (1–5 days vs. 4–8 weeks for direct hire), flexibility (no long-term commitment), risk reduction (try before you hire), or access to passive candidates who aren't actively job searching. For permanent hires where you have time and a strong employer brand, direct sourcing through LinkedIn is often cheaper.
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