Three Secrets

Here are 3 secrets that some staffing firms don’t want you to know!

1) How much they mark up their bill rates Large staffing firms have significant overhead structures. Unreasonable markups are common with large contracting organizations and are often two to three times the entero model. The sales culture in some of these firms is often one that will charge clients as much as they can get away while paying the contractors as little as possible!

2) How much profit they make on contractor conversion fees Some staffing firms charge clients a 25% conversion fee to hire a contractor even after many months on billing. The common argument made is that the contractors are their “valuable inventory” and they can not give them away with out a conversion fee. These firms are double dipping their clients by billing high hourly rates as well as a conversion fee after many months of billing.

3) How much they rely on high pressure sales tactics Some staffing firms strongly encourage sales associates to pressure clients with excessive contact and attention. Some times clients and contractors feel like they will say or do nearly anything to close a deal. Clients and contractors are often pressured hard to do what is really only in the best interests of the staffing firm with regard to the contractor pay rates and client bill rates.