Staffing Salary & Bill Rate Benchmarks

Last reviewed: July 8, 2026 · Editorial benchmarks compiled from SIA, ASA, and BLS OEWS data

Hourly pay ranges and typical agency markup for 17 commonly placed staffing roles, for the USA and Canada. Use the interactive tool to calculate bill rates for your market.

Frequently asked questions

What is staffing agency markup?

Markup is the percentage added to a worker's pay rate to form the client's bill rate, covering the agency's employment costs (payroll taxes, workers compensation, insurance) plus overhead and profit. Across the roles in our benchmarks, typical markups run 38-45%, though the market range spans roughly 25-75% depending on role, risk, and volume.

What is the difference between pay rate and bill rate?

The pay rate is what the worker earns per hour; the bill rate is what the client pays the agency per hour. The gap is the markup. Example from our benchmarks: a US forklift operator earning a mid rate of $21/hour at a 42% markup bills at about $29.80/hour.

How do staffing agencies make money?

Primarily through the spread between bill rate and the full cost of employing the worker (pay plus taxes, workers compensation, and insurance), earned hour by hour on temporary placements, and through one-time fees of roughly 15-25% of salary on direct hires. Gross margin per hour is small, so volume, redeployment, and low overhead decide profitability.

What is a typical staffing agency gross margin?

After paying the worker and statutory employment costs, temporary staffing gross margins commonly land in the 15-25% of revenue range, with light industrial at the lower end and specialized professional staffing higher. Net margins are far thinner, which is why operational efficiency and software leverage matter so much.

What is the average staffing agency bill rate?

There is no single average: bill rates track the role. From our benchmarks, a US warehouse associate at a $17 mid pay rate and 45% markup bills near $24.65/hour, while a registered nurse billing on a $42 mid rate at a lower percentage markup can exceed $55/hour. Always benchmark per role and market.

What is payroll funding for staffing agencies?

Payroll funding bridges the gap between paying workers weekly and collecting client invoices on net-30 to net-60 terms. New and growing agencies typically use invoice factoring (selling receivables at a discount) or a credit line. Cash flow, not sales, is the most common killer of young staffing firms.

What is invoice factoring in staffing?

Factoring means selling your client invoices to a funding company at a small discount (often 1-3%) to get cash immediately instead of waiting 30-60 days. It costs more than bank credit but scales automatically with your billing volume, which is why it dominates early-stage staffing finance.

What is a conversion fee in staffing?

A conversion fee is what a client pays to hire a temporary worker onto their own payroll before an agreed threshold, compensating the agency for losing billable hours. Fees typically decline the longer the assignment has run and are defined in the staffing agreement, not negotiated after the fact.

What are net payment terms in staffing?

Net terms define how many days a client has to pay an invoice: net-30 and net-60 are common, and large enterprises push longer. Every added day of terms is working capital you finance. Pricing should reflect terms: a net-60 client at the same markup is materially less profitable than a net-15 client.

How much does it cost to start a staffing agency?

Startup costs vary widely by state and segment, but the real constraint is working capital for payroll funding rather than setup costs: you pay workers weekly while waiting 30-60 days for client payment. Licensing, insurance (including workers compensation), and technology come first; a funding facility should be arranged before the first placement.

What insurance does a staffing agency need?

At minimum: workers compensation for placed employees (the largest and most scrutinized policy), general liability, and typically professional liability and employment practices liability insurance (EPLI). Clients and RFPs commonly specify minimum coverage amounts, so insurance is also a sales requirement.

What is a staffing rate card?

A rate card is the agreed schedule of pay ranges, bill rates, or markups per role category between an agency and a client or MSP program. Enterprise programs enforce rate cards through their VMS. Winning the rate card negotiation matters more than winning any single order.

Why do staffing agencies charge markup instead of flat fees?

Hourly markup aligns the agency's revenue with actual hours worked and keeps the agency responsible for employment costs that scale with hours, like payroll taxes and workers compensation. Flat fees appear mainly in direct hire and project-based arrangements where hours are not the unit of value.

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Benchmarks are editorial estimates for orientation, not offers or guarantees; local markets vary. Compiled from public SIA, ASA, and BLS OEWS data plus editorial review.