Factors that impact cost
The cost of using a temp agency can vary widely depending on several factors, including the location, the type of work, the level of skill required, and the specific agency itself. Here's a general idea of how temp agencies charge for their services.
Markup percentage
Temp agencies often charge a markup on the hourly rate paid to the temporary worker. This markup can range from 25% to 100% or more, depending on the agency and the factors mentioned above.
For example, if a temp agency charges a 50% markup and the temporary worker's hourly wage is $15, the client company would be billed $22.50 per hour for that worker's services.
Direct billing
Some temp agencies charge a flat fee or a direct billing rate instead of using a markup percentage. They might bill the client company a fixed amount for each hour the temporary worker is on assignment.
Additional costs
In addition to the markup or direct billing rate, there may be additional costs for services such as background checks, drug tests, skills testing, or administrative fees.
Contract length
The duration of the temporary assignment can also affect the overall cost. Longer-term assignments may result in lower markup percentages or direct billing rates.
Skill level
Highly skilled or specialised temporary workers may command a higher markup or direct billing rate compared to workers with less specialised skills.
Location
Costs can vary significantly based on the cost of living and labor market conditions in a particular region. Temp agency rates in major cities may be higher than in smaller towns.
Industry
Some industries, such as healthcare or information technology, may have higher temp agency rates due to the demand for specialised skills.
It's important to note that temp agency pricing structures can be negotiated, and rates can vary from one agency to another. Clients often work closely with temp agencies to determine the most cost-effective solution for their staffing needs.
For more information regarding temp agencies, check out Indeed's article on how staffing agencies work.
Additionally, you can click the button below to read our article on how temp agencies make money.
Want to hire a top temp?
Now that you understand how much temp agencies charge per hour, you may be interested in learning more about 11 Recruitment's temp and casual recruitment services.
11 Recruitment is the leading agency for white-collar temp and casual staff. Our consultants fill assignments in Perth and throughout WA for various sectors, including:
We offer temp and casual staff for short-term and long-term assignments. Additionally, we provide cover for unexpected, annual and maternity leave. We also source top talent for temp-to-perm opportunities.
Unlike other agencies, we use custom recruitment software as well as a range of unique sourcing tools. We also have a comprehensive CV database of over 110,000 white-collar candidates. As a result, we can provide reliable temp and casual staff within short timeframes.
Click the button below to learn more about how 11 Recruitment sources top temp and casual talent for businesses throughout WA.
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