A worker earns $22 an hour. The employer who hires through a temp agency is billed more. Where does the extra money go? If you wonder how much do staffing agencies charge, the short answer is simple. A permanent hire usually costs 15% to 25% of the first-year salary. A temporary worker usually carries a markup of 25% to 75% on the hourly wage. The employer pays the bill, not the worker.
This guide explains each fee in simple words. You will learn how a markup works, what sits inside it, which extra charges to watch for, and how to compare quotes in British Columbia.
How Much Do Staffing Agencies Charge in Canada?
The table lists the typical fees for a recruitment agency in Canada. BC agencies work in the same range, but every agency sets its own price.
| Hiring model | Typical fee | How it is paid |
| Permanent (contingency) | 15% to 25% of first-year salary | After the person starts |
| Executive or retained search | 25% to 35% of first-year salary | In steps during the search |
| Temporary or contract | 25% to 75% markup on hourly wage | Weekly or every two weeks |
| Temp-to-perm | 10% to 30% of annual salary | When a temp joins your payroll |
So, the answer to how much do staffing agencies charge is that a perm fee is paid once. A markup is paid on every invoice. A Surrey warehouse hiring ten extra workers sees the markup each week. A Victoria office hiring one manager pays once. That is the temp markup vs perm fee choice in its simplest form.
What Are the Main Ways Staffing Agencies Charge Employers?
Before you ask how much do staffing agencies charge, know the model. Each agency builds its own staffing agency commission structure, but most use four models.
Temp Markup on the Hourly Wage
With temp staff, the agency is the legal employer. It pays the worker, then bills you a higher hourly amount, called the bill rate. The gap between the pay rate and the bill rate is the markup. Staffing agency markup rates usually run from 25% to 75%. Seasonal work in BC often goes this way, such as fruit packing in the Okanagan or hotel work in Whistler. People ask how much does a temp agency charge per hour. The amount depends on the worker’s hourly pay and the agency’s markup.
Perm Placement Fee (Percentage of First-Year Salary)
A perm fee is a one-time charge, paid only if you hire the person the agency finds. If you ever wonder, what are the typical fees for a recruitment agency in Canada? Most land between 15% and 25% of the first-year salary. A $65,000 project coordinator with a 20% fee costs $13,000, paid once. So, what is the average fee for a headhunter? The average recruitment fee is around 20% of the worker’s first-year salary.
Executive and Retained Search Fees
Senior jobs often use a retained search. The fee is usually 25% to 35% of the first-year salary, paid in steps while the search runs. A mine manager in northern BC is a typical case. Entry-level jobs may carry a flat fee.
Temp-to-Perm Conversion Fee
Sometimes you want to keep a temp worker. The agency may then charge a conversion fee, usually 10% to 30% of the annual salary. Many contracts lower the fee, or drop it, after a set number of hours or months.
How Does a Staffing Agency Markup Work?
How to Calculate a Temp Agency Markup
Bill rate equals pay rate times one plus the markup. Take a $22 worker with a 40% markup. Multiply 22 by 1.4. The bill rate is $30.80 an hour. Any temp agency markup calculator online uses this formula. Markup and margin are not the same. Markup is measured on the worker’s pay. Staffing agency margin is measured on the bill rate. A 50% markup leaves a margin of about 33%.
What a Temp Agency Bill Rate Looks Like in BC
BC’s minimum wage is $18.25 an hour since June 2026, so no agency can pay a worker less. Temp agency bill rate Canada figures are rarely posted online. A temp agency markup calculator or the table below can help you test staffing agency markup rates. These are examples, not quotes.
| Worker pay rate | 30% markup | 40% markup | 50% markup |
| $18.25 (BC minimum wage) | $23.73 | $25.55 | $27.38 |
| $22.00 | $28.60 | $30.80 | $33.00 |
So how much does a temp agency charge per hour? The worker’s pay plus the markup. For the $22 worker, that is $28.60 to $33.00.
What Costs Are Inside a BC Staffing Markup?
When employers ask how much do staffing agencies charge, they rarely ask what the number covers. The temp agency bill rate Canada employers see is not pure profit. For temp staff, the agency is the employer of record and carries the payroll duties.
Payroll Costs the Agency Must Pay
Every Canadian employer pays into the Canada Pension Plan at 5.95%. Employment Insurance (EI) adds another 2.28% to employer payroll costs outside Quebec. The 2.28% applies to insurable earnings, up to the annual maximum. It is not an unlimited charge on all wages. Vacation pay adds 4% to 6%, based on years of service. On the $22 worker, these items add about $2.69 an hour, which puts the cost near $24.69. This is the first layer of staffing agency cost for employers.
BC-Specific Costs
Agencies pay WorkSafeBC premiums, and the rate follows the risk of the job. Workers can earn stat holiday pay for days like Family Day and BC Day. Agencies with annual BC payroll above $1 million may also have to pay Employer Health Tax (EHT). The tax amount depends on the total payroll. Other provinces have similar workers’ compensation systems, such as WSIB in Ontario.
Agency Overhead and Profit
The rest pays for finding people, screening, insurance, payroll, and T4 slips. The agency also pays workers before the client pays the invoice. In the $22 example with a 40% markup, about $6.11 an hour remains after CPP, EI, and vacation pay. That must still cover WorkSafeBC, stat pay, running costs, and profit. So the real staffing agency margin is smaller than the markup suggests.
Why Do Staffing Agency Fees Change From Job to Job?
So how much do staffing agencies charge for one job and not another? Skill comes first. A general labourer is easy to find. An electrician takes longer to find and test. Risk and speed also count, since risky jobs cost more to insure and urgent orders take more effort. Metro Vancouver has many job seekers, while a small Interior town may have fewer. Typical fees for a recruitment agency in Canada, like the average fee for a headhunter, are only a starting point. Real staffing agency fees move with each job.
Are There Hidden Staffing Agency Fees to Watch For?
Some charges do not show in the headline rate. Background checks, record checks, and drug tests are often billed on top. So are booking fees, minimum hours, and cancellation charges. A clear staffing agency commission structure should list every one. In BC, overtime starts after eight hours in a day, so a long Friday shift can raise the bill fast. How much does a temp agency charge per hour on a stat holiday? Usually the marked-up rate, not the plain wage. Ask for a written rate sheet.
Which Costs Less: A Temp Markup or a Perm Fee?
Take a temp worker who earns $25 an hour, with a 40% markup. Here, the temp agency bill rate Canada employers pay is $35, so the markup is $10 an hour. Over six months of full-time work, about 1,040 hours, that adds up to $10,400. A perm hire at $52,000 a year with a 20% fee costs the same $10,400. The markup also pays for payroll costs, so the match is rough. Still, a worker you keep past six months often costs less through a perm hire or a temp-to-perm deal. That is the heart of temp markup vs perm fee.
When a Temp Worker Makes Sense
Temp staff suits short needs, such as a busy season, sick leave, or a short project. A BC business with a summer or holiday rush can add staff and let them go when work slows.
When a Perm Placement Makes Sense
A perm placement suits roles that will last, such as a bookkeeper in Surrey or a site supervisor in Kelowna. You pay once and avoid a markup on every invoice. When you weigh temp markup vs perm fee for these jobs, the one-time fee often wins. Use the average fee for a headhunter, about 20%, to set the budget.
How Can BC Employers Compare Staffing Agency Quotes?
How much do staffing agencies charge, and is the quote fair? Put each quote side by side and compare staffing agency markup rates.
What Details to Share to Get an Accurate Quote
A good quote starts with good details. Tell the name of the roles that you need. Say whether you want temp or perm staff. Give the city, such as Vancouver, Kamloops, or Prince George, since local pay and supply differ.
Questions to Ask Before You Sign
Ask for the pay rate and the bill rate. Discuss what the markup covers, plus the conversion terms and any guarantee period. Check the full staffing agency cost for employers, not only the headline percentage. Run each quote through a temp agency markup calculator. A very thin staffing agency margin can be a warning, as the agency may cut corners on screening.
How to Keep Your Staffing Costs Down
Give a clear job description and share your needs early, because rush orders cost more. Ask each agency to explain its staffing agency commission structure in writing. Employers can also speak with Theta Smart Staffing Solutions to review rates and fees before they commit.
Conclusion
So how much do staffing agencies charge in Canada? Perm fees sit near 15% to 25%, and temp markups sit between 25% and 75%. A markup is not pure profit. Ask for every charge in writing, since staffing agency cost for employers goes beyond the headline rate. For a clear quote in BC, contact Theta Smart Staffing Solutions with the role, temp or perm need, and city.
Can I hire a temp worker directly without paying the agency?
Sometimes, but usually with a fee. Many agreements allow a direct hire after a set number of hours or months.
Can I see what the agency pays the worker?
You can ask. Some agencies share it, and some do not. Ask in writing before you sign.
What if my perm hire quits in the first 90 days?
Many agencies offer a guarantee. They find a new person or return part of the fee. The period is often around 90 days, but it varies.
Is the cheapest markup always the best deal?
No. When you ask how much do staffing agencies charge, a very low answer can hide weak screening or low pay for workers. A good fit saves more than a small cut in the rate.
Can a BC staffing agency charge the worker anything?
No. In BC, an agency cannot charge a worker for help finding a job. The employer pays the fee.
