How much do staffing agencies charge in Michigan, and what does the rate cover?
Staffing agencies charge by the hour, so how much do you pay? Typically, firms bill an hourly rate for each hour worked by the employee; this pays the employee's wages, payroll taxes, workers' compensation and the agency's service. The assignment, shift, volume and notice will increase or decrease the rate. Since no two orders are exactly alike, RHO Hiring has no price list, but quoting is fast: simply call (248) 843-0000.
Need workers? Call248-843-0000A manager usually calls back within a couple of hoursWhat is a staffing agency bill rate?
Temporary staffing rates are typically quoted as a bill rate. This is an hourly rate that you pay for every hour a worker works. This is not the same thing as a pay rate which is what that worker earns per hour.
The difference between the two is not all profit. The bill rate must cover the entire cost of the worker (not just the wage) as well as the cost of sourcing, preparing and managing them. RHO pays the worker and does the payroll during the temp assignment, and you pay RHO's invoice.
What RHO Hiring's bill rate covers
The worker's wages
This is the rate we pay for the position and shift, set with you, to recruit and retain the labor the job requires.
Payroll taxes
Taxes an employer pays on top of wages include the employer's portion of Social Security and Medicare taxes, and unemployment taxes.
Workers' compensation
Workers' comp costs fluctuate depending on the type of work performed. Work near machinery and forklifts will be higher than packing or light assembly.
RHO's service
Recruiting, screening and matching, safety orientation, payroll, and the management team overseeing call-offs and any issues on your account.
What makes staffing agency rates go up or down?
Six things move a staffing rate up or down.
The role and its skills
Positions that require experience or skill level such as forklift operators, machine operators or QC inspectors command higher wages than entry level general labor so they bill out higher.
The shift
Nights, weekends and holidays may have a differential because they are harder to staff.
Volume and length
The more people you need and the longer they're assigned, the more you can amortize recruiting and setup costs, which can lower your rate.
Notice
A big order on short notice requires more recruiting effort than one ordered weeks in advance. With recurring plans for peak seasons, we can schedule workers ahead of time.
Overtime
Hourly employees who work more than 40 hours in a week will typically qualify for overtime wages under the federal Fair Labor Standards Act. That's why overtime hours are billed at a premium. Scheduling your shifts in advance keeps it predictable.
Site requirements
Additional safety equipment, special orientation or additional training before a worker begins are all included in the quote.
How are temp-to-hire and direct hire priced?
During the assignment, you pay the bill rate for a temp-to-hire worker. When you decide to hire, they convert to your payroll on the terms stated in your agreement, which includes when a worker may be converted and if there is a conversion fee. Temp-to-hire allows you to trial a worker on your floor before making a permanent offer.
Direct hire recruiting is typically charged differently: instead of being charged an hourly rate, the fee to locate the person is negotiated prior to beginning the search.
Whether you select one method or another, the terms are clearly defined before that first shift, so there are no surprises when a valuable worker becomes your employee. Our guide compares the three: temp, temp-to-hire and direct hire.
Staffing cost questions
Can you give me a price over the phone?
Everything that impacts price we can discuss over the phone on the first call. To quote we need to know what roles, how many workers, what shifts and when you need them to start. Quoting is done rapidly and you will typically be contacted by a manager within a couple of hours; then how staffing works explains the next steps.
Is staffing more expensive than hiring directly?
Hourly, the bill rate is more than the wage itself because it includes payroll taxes and workers' comp as well as overhead for recruitment and management. What you don't carry is the time or expense of recruiting, screening and onboarding yourself, or the cost of an open slot during a busy shift.
What if our needs change after we start?
Inform your manager. Adding employees, changing schedules or reducing hours are all part of staffing. If a change will impact your rate, we will agree on it with you prior to the change happening.
How does a staffing agency get paid, and who pays the worker?
During a temporary assignment, RHO pays the worker and manages their payroll. You pay an invoice from RHO for those services at your agreed-upon bill rate. After a temp-to-hire conversion, they are placed on your payroll.
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