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The Staffing Industry The costs associated with a typical temporary bill rate TM Visit our website at areatemps.com N early 80% of a company’s cost to employ a temporary worker is directly tied to the worker’s pay, benefits and direct costs. Since staffing is a business in which the vast majority of costs are variable, opportunities for economies of scale are more modest than with many other businesses. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Temporary Worker Hourly Pay 64.7% Benefit/Taxes Insurance Internal Staff Wages/Benefits 12.9% 12.9% Typical Mark-up Typical Worker Pay Rates 1.8% Operating Profit 3.2% Other Operating Costs 0.6% Technology Costs 1.2% Advertising/Recruiting Costs 2.7% Facilities Costs S taffing is also a relatively low margin business. Subtracting overhead and staffing company operating costs leaves the typical temporary staffing agency with a pre-tax operating profit of 1.8% on temporary worker billings. Source: Staffing Industry Analysts, Inc. estimates of typical contingent staffing firm profitability. What makes up a typical billing hour for a temporary worker? AREA TEMPS STAFFING INDUSTRY 21