If you’ve ever looked at a staffing agency proposal and wondered how the numbers were calculated, you’re not alone. At Doherty Staffing Solutions (Doherty), we believe in transparent, straightforward pricing, and that means showing you how different service models work in real life.
Below, we walk through common service types offered by Doherty, how each is typically priced, and mock examples to help you understand what your investment might look like.
Staffing Options
Pricing can vary depending on the staffing model you select. If you’re interested in learning about how pricing varies or more information to help you decide which option best suits your needs, check out our “What are your staffing options?” article.
Temporary Staffing
Pricing model: Hourly bill rate = Pay rate + Markup
Most temporary staffing assignments are billed hourly, with the markup covering payroll taxes, workers’ compensation, recruiting costs, etc. Learn more about markup here.
Example:
- Employee pay rate: $20/hour
- Markup: 40%
- Bill rate = $20 + ($20 × 0.40) = $28.00/hour
Temp-to-Hire Staffing
Pricing model: Hourly billing during trial period (above) + conversion fee if hired
This model lets you assess a worker’s fit before extending a permanent offer. After a set number of hours, many conversion fees are waived or significantly reduced.
Example:
- Employee pay rate: $20/hour
- Markup: 40%
- Bill rate = $20 + ($20 × 0.40) = $28.00/hour
If hired:
- Standard trial: 520 hours
- If hired before trial period: flat placement fee
- If hired after 520 hours: no/reduced or flat placement fee
Direct Hire Staffing
Pricing model: One-time placement fee = 15-20% of candidate’s first-year salary OR flat fee (depending on arrangement)
The placement fee covers recruiting, screening, and placement services, with no ongoing hourly billing.
Example:
- First-year salary: $80,000
- Fee percentage: 15%
- Placement fee = $80,000 × 0.15 = $12,000
Workforce Management Solutions
Successful workforce management involves more than simply staffing your facility; it also requires understanding the full cost of building and maintaining a team. If you’re curious about the true cost of hiring an employee, this article breaks it down. Next, let’s examine some cost examples of other workforce management solutions that can help your operation run smoothly and efficiently.
On-Site Workforce Management
Pricing model: Hourly bill rate (pay rate + markup) for temp workers on assignment + monthly fee based on volume and services. This can also be calculated fractionally for on-site representatives who are only on-site a few days a week vs. full-time. In cases that are very high volume, on-site fees may also be waived.
This model supports high-volume staffing needs with an on-site coordinator and workforce management tools.
Example:
- 50 temporary employees
- On-site program fee = $500/month
(Includes on-site representative salary)
Payrolling / Employer of Record (EOR)
Pricing model: Hourly bill rate = Pay rate + Flat admin fee OR markup (depending on contract arrangement)
This model is ideal if you’ve already identified a worker but want Doherty to serve as the legal employer of record.
Example (with Admin Fee):
- Employee pay rate: $20/hour
- Admin fee: $4/hour
- Bill rate = $24/hour
Example (with Markup):
- Employee pay rate: $18.00/hour
- Markup fee: 20%
- Bill rate = $18 + ($18 × 0.20) = $21.60/hour
Includes payroll processing, tax filings, benefits administration, and compliance.
Partner with a Transparent Staffing Agency
By seeing these mock scenarios, you can better estimate staffing costs based on your needs and choose the model that aligns with your hiring goals and budget.
Need help determining which structure is right for your team? Connect with an employment expert to explore your options. Looking for more information on staffing pricing? Explore additional resources in our Learning Center.
