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Staffing Agency Calculator

Use this free tool to calculate staffing agency markup rates – and learn about additional options for quickly finding skilled freelance talent.

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+75%
Traditional staffing agency
$0000
+5%
Upwork Talent Marketplace
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How to use our Staffing Agency Calculator?

Our Staffing Agency Calculator can help you assess the cost of hiring freelance talent through a staffing firm. Using the average staffing markup percentage, the calculator makes it simple and easy to compare staffing agency fees to Upwork’s Talent Marketplace. Simply input your hourly rate budget and the anticipated number of hours you need a freelancer, and the calculator will provide an estimate of how much you’ll likely be charged by a staffing agency.

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Frequently asked questions

What is a staffing agency?

A staffing agency is a business that functions as a liaison by matching freelancers and job candidates to businesses looking to fill specific roles. Some staffing agencies are generalist and recruit for a wide variety of industries, while others specialize in sourcing talent in one field.

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How do staffing agencies make money?

A staffing agency, sometimes referred to as a recruiting firm, earns revenue each time a client company hires a freelancer, contractor or new part-time or full-time employee through them. The employer pays a markup fee based on the professional’s rate or salary. In some cases, staffing agencies add a charge for filling the position in addition to the standard markup fee.

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What is an average staffing firm markup rate?

Staffing agencies typically charge a markup fee of 75%. For example, if a freelance professional’s rate is $80 per hour, the hourly cost an employer pays the staffing agency would be $140. Be aware that staffing agency markup rates can vary and some exceed 75% for certain in-demand roles, with figures reaching 100% or higher.

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What is a staffing agency bill rate?

A staffing agency bill rate is the amount a staffing agency charges a client company. It includes the amount the agency pays the job candidate, as well as the markup fee that is added on top of the pay rate and charged to clients, which averages 75% and can exceed 100% as mentioned above.

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Do staffing agencies take a cut of the worker's pay?

Staffing agencies do not typically charge the freelancer or job seeker for their services. The financial agreement is between the staffing firm and the client company. It’s worth noting that some staffing agencies may charge freelancers or job candidates for services such as resume writing and interview training.

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What is an alternative to using a staffing agency to source talent?

Upwork connects businesses to freelance professionals from across the globe with the expertise and skills needed to get projects done quickly and efficiently.

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How does Upwork charge for services?

Upwork charges a flat fee (5%) on transactions. For example, if you hire an independent professional through Upwork and your payment is $500, you will only pay Upwork an additional $25. Fees can be as low as 3% for eligible U.S. clients.

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