How Much Do Staffing Agencies Charge?
Staffing agencies charge employers in two basic ways, depending on whose payroll the worker is on. For contract and temporary workers, the agency bills you an hourly rate usually 1.5 to 1.8 times what the worker is paid, a 50% to 80% markup. For a direct hire, where the worker joins your payroll on day one, you pay a one-time fee of about 20% to 30% of the first-year salary. Contract-to-hire combines the two models, and recruitment process outsourcing (RPO) replaces per-hire fees with a weekly or monthly fee.
The ranges in this guide are based on what we see in the market as a staffing firm that prices and competes in this space every day. To make the models easy to compare, every dollar example uses the same role: an accountant paid the national average of $84,438 a year, or $40.60 an hour, according to our salary data. For reference, 4 Corner Resources charges 18% to 25% of first-year salary for a direct hire, paid monthly, and bills contract workers at 1.45 to 1.75 times their pay.
Pricing current as of October 2026.
What Does Each Staffing Model Cost?
The price depends on the model you choose. The table shows how each one bills for the same accountant.
Contract bills by the hour for as long as you need the worker. Direct hire bills once.
What each model costs for an accountant paid $84,438 a year ($40.60 an hour)
| Model | Cost for the accountant |
|---|---|
| Contract or temporaryHourly bill rate for every hour worked | $60.90 to $73.08 an hour1.5 to 1.8 times the worker’s pay |
| Contract-to-hireHourly bill rate, with a possible conversion fee if you convert early | $60.90 to $73.08 an hour while on contractSame as contract, plus a conversion fee in some agreements |
| Direct hireTypically a one-time fee | $16,888 to $25,331, one time20% to 30% of first-year guaranteed compensation |
| Recruitment process outsourcing (RPO)Weekly or monthly fee | No per-hire feeQuoted by scope; ours starts at $2,500 |
Salary from 4 Corner Resources salary data. Ranges reflect what we see in the market.
How Does 4 Corner Resources Pricing Compare?
Here is how our pricing lines up against the typical ranges above for the accountant.
Same accountant, two price lists. Ours runs 2 to 5 points lower on direct hire and is paid monthly instead of up front.
Typical agency pricing against 4 Corner Resources pricing
| Service | Typical agency | 4 Corner Resources |
|---|---|---|
| Direct hire | $16,888 to $25,33120% to 30% of first-year compensation, billed in full on the start date | $15,199, $17,732, or $21,11018% over 3 months, 21% over 6 months, or 25% over 12 months, paid monthly |
| Contract | $60.90 to $73.08 an hourBill rate of 1.5 to 1.8 times the worker’s pay | $58.87 to $71.05 an hourBill rate of 1.45 to 1.75 times the worker’s pay |
| RPO | Quoted by scope | Starts at $2,500Weekly or monthly, with no per-hire fee |
Our direct hire percentages are of first-year salary. Full terms on our pricing page.
The biggest difference is when you pay. Each direct hire payment is billed after the month is worked, and the payments stop if the hire leaves, so you don’t pay a full fee for someone who quits in the second month. If you prefer a single payment with a replacement guarantee, that option is available on request. Full details are on our pricing page.
How Does a Staffing Agency Markup Work?
A markup is the percentage an agency adds to a worker’s hourly pay to set the rate it bills you. The math is pay rate x (1 + markup) = bill rate, so a 50% markup on $40.60 an hour gives you a bill rate of $60.90. Out of the $20.30 difference, the agency pays the worker’s payroll taxes, insurance, and benefits before anything goes to recruiting or profit.
What’s inside a staffing agency markup?
The agency is the worker’s legal employer, so the markup has to cover everything an employer pays on top of wages, plus the cost of finding the worker in the first place. On a $40.60 accountant, the costs look like this:
- Social Security and Medicare. The employer share is 7.65% of wages, according to the IRS, about $3.11 an hour.
- Unemployment taxes. Federal unemployment tax is 0.6% on the first $7,000 of each worker’s wages after the standard credit, per the IRS. State unemployment tax comes on top, at a rate and wage base set by each state and adjusted for the agency’s claims history.
- Workers’ compensation insurance. Priced as a percentage of payroll by job class. On our policy, office and accounting roles add little, electrical and field service work adds about 4% of pay, and traveling healthcare work adds nearly 7%.
- Benefits. Health insurance for workers who qualify under the Affordable Care Act, plus any paid time off, holidays, or retirement match the agency offers.
- Liability insurance. General liability, professional liability, and employment practices coverage, which many clients require before a worker starts.
- Screening. Drug tests, background checks, and reference checks, paid on every placement whether it lasts 2 weeks or 2 years.
- Payroll funding. The agency pays the worker every week and waits 30 days or more for you to pay the invoice, so it carries the payroll in between.
- Recruiting. Job ads, recruiter time, and the agency’s own staff and overhead.
Across private industry, the BLS puts employer benefit costs at about 43 cents for every dollar of wages, with legally required costs such as Social Security, Medicare, unemployment, and workers’ comp making up about 10 cents of that.* Most employers budget less than 30 cents when they estimate their own burden, which is one reason a staffing markup looks larger than it is. What’s left after these costs is the agency’s profit, and a quote well below market usually means one of them was left out.
One note on quotes: some agencies state a margin instead of a markup. Margin is measured against the bill rate, so the same price shows up as a smaller number. Ask every agency for the bill rate and compare those.
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How Much Do Staffing Agencies Charge for Direct Hire?
Most agencies charge a one-time fee of 20% to 30% of the new hire’s first-year salary for a direct hire placement. For an accountant paid $84,438 a year, the fee comes to $16,888 to $25,331.
Most direct hire searches are contingent, which means you owe nothing unless you hire a candidate the agency presented. The fee is usually billed on the hire’s start date, and many agreements include a replacement guarantee if the hire leaves within a set period. Read that clause closely, including how long it lasts and whether it refunds money or only replaces the person.
Check what the percentage is applied to as well. Some agencies charge on base salary and others on total first-year compensation, including guaranteed bonuses, and on a role with a large bonus the difference adds up.
Some firms, including ours, let you pay the fee in monthly installments that stop if the hire leaves, as shown in the comparison above. For senior and executive roles, many firms work on a retained basis instead, with part of the fee paid up front to start the executive search.
What Does Contract-to-Hire Cost?
With contract-to-hire, you pay the contract bill rate while the worker is on assignment, then whatever the agreement says about moving them to your payroll. For the accountant, you’d pay $60.90 to $73.08 an hour during the trial period.
The conversion terms are where agreements differ most. Some agencies charge a conversion fee, sometimes reduced the longer the worker has been on assignment, and others convert at no charge after a set number of hours. Get those terms in writing before the worker’s first day, since a low bill rate paired with a steep conversion fee can cost you more in the end. Our post on contract-to-hire pros and cons covers when the model makes sense.
What Does Recruitment Process Outsourcing (RPO) Cost?
RPO replaces per-hire fees with a fixed weekly or monthly fee for dedicated recruiting work. Providers quote it by scope, based on how many roles you need filled and how much of the hiring process they handle.
The model pays off when you hire steadily. Ten accountants hired on direct hire fees would cost $168,880 to $253,310 in fees alone, and a fixed fee that covers the same hires may cost considerably less, depending on scope.
What Raises or Lowers a Staffing Agency’s Price?
The biggest factor is how hard the role is to fill. An accountant sits in the middle of the markup range: qualified candidates take real recruiting work to find, but the role is not as scarce as a senior specialist, who sits near the top. Several other factors move a quote up or down:
- Volume. Agencies usually lower the markup when you bring them several openings or a steady flow of work.
- Assignment length. The agency pays up-front costs on every placement, such as recruiter time, drug screens, and background checks, and recoups them through the markup over the life of the assignment. A 12-month assignment spreads those costs over about 2,000 hours; a 2-week assignment has 80, so short assignments usually carry a higher markup.
- Location. State unemployment tax rates and wage bases differ from state to state, so the same worker costs the agency more to employ in some states than others.
- Job risk. Workers’ compensation insurance is priced as a percentage of payroll by job class, and the spread is wide. On our own policy, office and accounting roles carry a rate small enough to sit inside the standard burden, electrical and field service work adds about 4% of pay on top, and traveling healthcare work adds nearly 7%. The riskier the job, the more of the markup goes to insurance.
- Exclusivity. Agencies often price lower when they’re the only firm working the role, because they know their recruiting time is more likely to end in a placement.
What Fees Should You Ask About Before You Sign?
The percentage on the quote is only part of the cost. Ask about each of these before you sign, and get the answers in the agreement:
- Conversion or buyout fee if you hire a contract worker onto your payroll.
- Overtime billing, including the multiple applied to the bill rate.
- Minimum hours or minimum assignment length.
- Background checks and drug screens, and whether they’re included or billed separately.
- Health insurance for contract workers, whether the agency offers it, and whether the cost is inside the bill rate or billed separately.
- Notice period to end an assignment early, including how many days’ notice the agency requires, whether you’re billed through that period, and what happens if the worker gives notice instead.
- Guarantee terms, including how long the guarantee lasts and what it excludes.
- Payment terms and late fees.
Is a Staffing Agency Worth the Cost?
An agency is worth the fee when the fee costs less than an empty seat plus the risk of hiring the wrong person.
The cost of a bad hire is commonly estimated at 30% of first-year salary, which for an accountant comes to about $25,331, the same as the top of the direct hire fee range.
The math also has to include your own time. Every week an internal recruiter or hiring manager spends sorting applicants is a week of salary spent on hiring instead of their regular work, and an agency that sends only qualified candidates cuts that time down.
How Do You Compare Staffing Agency Quotes?
Compare the bill rate, not the markup, and compare it on the same pay rate. One agency quoting a 60% markup on $18 an hour costs more than another quoting 70% on $16, because the bill rates are $28.80 and $27.20.
Beyond the rate, line up the quotes on four points:
- Total cost over the time you expect to need the worker, including any conversion fee.
- Guarantee terms, and whether they apply to the pricing option you’re choosing.
- How many candidates the agency expects to send per hire. Fewer, better-matched candidates means less interview time for your team. We submit fewer than 2 candidates for every hire on average, and our clients interview 1.4 candidates for every hire.
- Who handles payroll, taxes, and workers’ comp, so you know exactly which employer costs the bill rate covers.
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Frequently Asked Questions
No. The employer pays the agency, either through the bill rate or a placement fee. A contract worker receives the full pay rate agreed with the agency, and the agency’s share comes from the difference between that pay rate and the bill rate.
Yes, within limits. Agencies have the most room to move when you offer volume or an exclusive search. The fixed costs inside a markup, such as payroll taxes and workers’ comp, don’t change, so a quote that seems far below the market deserves a close look at what it leaves out.
Most agencies bill the full fee on the new hire’s start date or within 10 to 30 days. Some, including 4 Corner Resources, offer monthly installments instead.
A staffing agency places contract and temporary workers on its own payroll and often makes direct hires too, while a recruiting agency focuses on permanent hires. Our guide to staffing agencies vs. recruiting agencies explains the differences in detail.
Most staffing agencies mark up a contract worker’s pay by 50% to 80%, so the bill rate is 1.5 to 1.8 times the pay rate. The markup covers the agency’s payroll taxes, workers’ compensation and liability insurance, benefits, screening, and recruiting costs, with the remainder as profit.
The bill rate includes the worker’s pay plus everything the agency pays as the legal employer: Social Security and Medicare, federal and state unemployment taxes, workers’ compensation and liability insurance, benefits, drug and background screening, and payroll. You pay the bill rate for hours worked and nothing else, unless the agreement adds overtime multiples or a conversion fee.
See What 4 Corner Resources Charges
Our pricing page shows our direct hire fees and how pay-as-you-go works, and you don’t have to fill out a form to see them. If you want pricing for a specific role, tell us about your opening and we’ll send you a quote.
Sources
Internal Revenue Service, Topic no. 751, Social Security and Medicare withholding rates
Internal Revenue Service, Topic no. 759, Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026 (private industry: wages and salaries $32.82 per hour, benefits $14.07, legally required benefits $3.40)
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