How are Recruitment fees for Temporary Staff calculated?
While there are many benefits of hiring temporary employees, understanding the costs is important.
Temporary recruitment fees can vary depending on the industry, role type, how rare the required skills/expertise are and if your recruitment agency partner follows a low, medium or high pricing model.
Most often the cost of hiring a temporary employee is calculated using the following formula:
Candidate pay rate + on costs = total candidate cost + recruitment agency margin = total cost to the client
On costs include superannuation, payroll tax, workers compensation, administration and payroll fees and general insurances.
Agency margin is the fee a recruitment business charges you to supply you with temporary staff. This fee depends on the industry, market demands and the supplier/fee agreement in place between your business and the recruitment business.
Kingston Human Capital’s margin for temporary staff ranges from 16-25% depending on the industry.
