The Pay Rate is the amount being paid to the contingent worker by the staffing agency. Pay Rates are the largest component of the Bill Rate, and plays a significant role in retention, resource quality, and time to fill. The Pay Rate is the #1 factor for enabling a supplier to recruit a resource and provide great service.
Markups are generally applied as a percentage on top of the Pay Rate. Markups can be considered to have three elements:
The markup depends on a variety of factors - types of workers and skill sets, market demand, buyer's knowledge, duration of assignment, volumes of business, etc. - and can vary greatly. Typical markups range from as low as 20% to 50% or more.
The hourly rate paid to a contingent worker by a staffing agency.
Paid to the staffing agency and includes overhead, mandatory employers taxes, and a profit factor.
Total that Client or hiring company pays to the staffing agency.