Afrexai Staffing Agency

# Staffing Agency Operations

Run a staffing agency with hard numbers. Covers temp, temp-to-hire, and direct placement across light industrial, clerical, healthcare, and IT verticals.

## Billing & Markup Rates

| Vertical | Bill Rate Range | Typical Markup | Temp-to-Hire Fee |
|---|---|---|---|
| Light Industrial | $15-22/hr | 35-55% | 15-25% annual salary |
| Clerical/Admin | $18-30/hr | 40-60% | 20-30% annual salary |
| Healthcare (CNA/LPN) | $22-45/hr | 35-50% | $3,000-8,000 flat |
| IT/Technical | $45-150/hr | 30-45% | 20-25% annual salary |
| Accounting/Finance | $25-65/hr | 40-55% | 20-30% annual salary |
| Executive Search | N/A | N/A | 25-33% annual salary (retained) |

## Gross Margin Targets

- Temp staffing: 22-28% gross margin (after payroll burden)
- Temp-to-hire: 25-35% blended
- Direct placement: 80-90% (fee minus recruiter cost)
- Blended agency target: 28-32% gross margin

## Payroll Burden (on top of pay rate)

| Component | Rate |
|---|---|
| FICA (employer share) | 7.65% |
| FUTA | 0.6% (first $7K) |
| SUTA | 1.5-5.4% (state-dependent) |
| Workers' Comp | 1-15% (industry-dependent) |
| ACA compliance (30+ hrs) | $350-550/mo per employee |
| General liability | 0.5-1.5% of payroll |
| **Total burden** | **12-30% of pay rate** |

## Key Metrics (Weekly Dashboard)

| Metric | Target | Red Flag |
|---|---|---|
| Fill rate | >85% | <70% |
| Time-to-fill | <3 days (light industrial), <10 days (professional) | >7 / >21 |
| Gross margin % | >25% | <20% |
| Temp turnover (weekly) | <8% | >15% |
| Recruiter productivity | 8-12 placements/week (temp), 2-4/month (perm) | <5 / <1 |
| Days sales outstanding (DSO) | <35 days | >50 days |
| Client retention (annual) | >80% | <65% |
| Workers' comp mod rate | <1.0 | >1.2 |

## Compliance Requirements

### Federal
- **I-9 verification** — within 3 business days of start. E-Verify if government contracts. Fines: $252-$2,507 per form (first offense), $2,507+ repeat.
- **ACA employer mandate** — if 50+ FTE, offer co...

# Staffing Agency Operations

Hard numbers for running a staffing agency — markup rates, payroll burden, compliance requirements, and growth benchmarks from $0 to $10M+.

Covers temp, temp-to-hire, and direct placement across light industrial, clerical, healthcare, and IT verticals.

## What's Inside

- **Billing & markup rates** by vertical (6 categories)
- **Payroll burden calculator** — FICA, FUTA, SUTA, workers' comp, ACA
- **Weekly KPI dashboard** — fill rate, time-to-fill, DSO, recruiter productivity
- **Compliance matrix** — I-9, ACA, FLSA joint employer, OSHA, state licensing
- **Technology stack costs** — ATS, VMS, payroll, background checks
- **Growth playbook** — four stages from solo operator to $10M+
- **Cash flow planning** — working capital needs by revenue level

## Who This Is For

Staffing agency owners, recruiters going independent, workforce solutions companies, and anyone building AI agents for the $174B US staffing industry.

## More from AfrexAI

- [Industry Context Packs ($47)](https://afrexai-cto.github.io/context-packs/) — 10 industries, real numbers
- [AI Revenue Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) — Find where you're leaking money
- [Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/) — Configure your AI agent in 5 minutes