A staffing agency's bill rate is the worker's hourly pay plus a markup. The markup covers the employer costs the agency carries — payroll taxes, workers' compensation, unemployment insurance, liability insurance and benefits where required — plus recruiting, screening, payroll administration and the agency's margin. Compare quotes on the full bill rate and what it includes, not the markup percentage alone.
Key takeaways
- Bill rate = pay rate + markup.
- Much of the markup is mandatory employer cost, not profit.
- Workers' comp varies widely by role and state.
- Compare total bill rate and what's included, not just the percentage.
What's inside the markup
- Employer payroll taxes (Social Security, Medicare, federal and state unemployment).
- Workers' compensation insurance — higher for warehouse and industrial roles.
- General liability insurance.
- Benefits required by law or contract.
- Recruiting, screening, background checks and onboarding.
- Payroll, timekeeping and HR administration.
- The agency's operating margin.
Why markups differ by role and state
Workers' compensation rates depend on the job's risk classification and the state. A forklift operator in one state can carry a very different insurance cost than an office assistant in another, which changes the markup.
How to compare quotes
Ask each agency for the pay rate, bill rate, what's included (screening, safety training, overtime billing), the replacement policy and any conversion fees. A slightly higher rate with better screening often costs less overall.
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Frequently asked questions
What is a typical staffing agency markup?
Markups vary by role, state and volume. Industrial roles usually carry higher markups than office roles because of workers' compensation costs. Ask for a full breakdown rather than relying on a single percentage.
Are conversion fees negotiable?
Often, yes — especially for high-volume programs or when the worker has been on assignment for a long period.
Does Helix provide transparent pricing?
Yes. Helix provides written quotes that show pay rate, bill rate and what's included.