Client Rate
When you choose to utilize EPL or another staffing agency, your investment (commonly referred to as a bill or charge rate), will be the hourly amount you pay for the services of the temp worker(s).
Your investment consists of 2 components – the pay rate and the mark-up, which totaled together, gives you your total hourly cost. Here’s how it works:
Pay Rate
The Pay Rate is the amount being paid to the contingent worker by the staffing agency. Pay Rates are the largest component of the Bill Rate, and plays a significant role in retention, resource quality, and time to fill. The Pay Rate is the #1 factor for enabling a supplier to recruit a resource and provide great service.
Mark-up
Mark-ups are applied as a percentage on top of the Pay Rate and consist of:
- Government remittances which fluctuate based on earnings (EI, C.P.P, EHT, WSIB, Vacation Pay and Stat Holiday Pay) *all included these premiums generally account for an additional 20-22% on top of the set hourly wage. As an example, a pay rate of $12.00 an hour is really $14.40-$14.65 once the remittances are figured in
- Cost of business expenses which adjust depending on the volume of workers and wage etc. – this includes, but not limited to employee insurance, recruitment and advertising costs and staffing specialists etc.
- Gross Profit – the remaining amount after earnings and costs have been calculated. This is usually in the 2-5% range.
Let’s Break It Down With An Example:
| Pay Rate | Mark-up – Pay Rate x Mark-up (ex.40%) | Bill Rate – Pay Rate + Mark-up = Bill Rate |
|---|---|---|
| $12 an hour | $4.80 an hour | $16.80 an hour |
| The hourly rate paid to a contingent worker by a staffing agency. | Paid to the staffing agency which in turn, submits payable taxes and remittances on behalf of the worker to the government. Remainder covers overhead and related costs noted above. | Total that Client or hiring company pays to the staffing agency. – HST to be added on. |