Staffing Agency Markup Calculator
Determines the markup percentage and bill rate when using staffing agencies
Hourly rate paid to the employee by the agency
Hourly rate the agency charges the client
Difference between bill rate and pay rate
Markup as a percentage of employee pay rate
Total markup over 2,080 working hours per year
Frequently Asked Questions
What is a typical staffing agency markup?
Staffing agency markups typically range from 20-100% depending on the role type. Light industrial and administrative roles see 25-50% markups. Professional and IT staffing runs 40-75%. Executive and highly specialized roles can command 75-100% or more.
What does the staffing agency markup cover?
The markup covers the agency's payroll taxes (7.65% FICA), workers' compensation insurance, unemployment taxes, the agency's overhead (recruiters, office, technology), and profit margin. Benefits like health insurance, if provided, add another 5-15%.
Is it cheaper to hire directly or through a staffing agency?
Direct hiring is usually cheaper long-term for permanent positions. Agencies make sense for temporary needs, hard-to-fill roles, or when speed matters. Calculate the break-even point: agency markup vs. your internal recruiting costs, time-to-fill, and vacancy costs.
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