Understanding Staffing Agency Costs

Understanding Staffing Agency Fees

For a staffing agency, the process of finding a qualified and reliable employee, and providing that employee for work with a business customer is significant. There is a huge misconception regarding staffing agency fees. Most companies think staffing agencies make a large profit, but in fact staffing agencies work on very low profit margins. For example, consider all of the costs associated with an employee:

Payroll
Payroll taxes
Healthcare
Vacation and holiday pay
Liability insurance
Workers compensation
Advertising
Testing
Other related recruiting costs

When you consider after paying all of the above fees and other related employment costs, staffing agencies are actually making pennies per dollar for every hour billed to a customer.

There are thousands of staffing agencies and agency fees vary greatly from one provider to another. When you are in the process of choosing a staffing agency to partner with, keep in mind the different types of fees you may encounter, and ensure that your agreement with the agency clearly documents what fees are covered, and by whom.

There are other types of staffing agency fees to consider, for example: contingency fees for finding an employee, or a direct hire fee which is normally 25-30% of the employees first years’ gross salary. There are staffing agencies which offer temporary, temporary-to-hire, contract, and direct hire placements across all industries, and fees may vary greatly.

Our Approach at Accurate Staffing

Here at Accurate Staffing, even though payroll and all of the other associated employee fees go up annually, we never increase our customer’s bill rates. We have customers that have been with us for 20 years and are still paying the same billing rates they were paying from the first day of placing an order.

Furthermore, Accurate Staffing partners with our clients; we mirror your hiring process. With our national network and a database of more than 60,000 candidates, Accurate Staffing rapidly delivers talented, reliable workers.

However, filling orders is only part of a sound staffing strategy. For your business to thrive in today’s economy, you need a true staffing partner whose services fuel your success. Accurate Staffing understands, and we deliver! Our supplemental and strategic workforce solutions help you run leaner and accomplish your business goals. We have a long and successful history of providing critical staffing solutions for a wide variety of industries and businesses, including:

We are centrally located in Northeast Ohio with offices in Akron (330.630.0700) and Canton (330.494.9675). Contact us today to learn more about how we can help with your staffing needs.