They could give you this budget in the form of a hourly dollar amount, like “$50 per hour”. What is your client’s hiring budget? Having a rough idea of what your client is willing to pay shows you if you are in the same ballpark as you work through the rest of this process. Try using the following three-step process to select a fair and profitable bill rate. Hourly Bill Rate = Hourly Pay Rate + Tax Burden + G&A (aka Back-Office) + Recruiter Profit First, let’s look at what makes up the hourly bill rate: Calculating contract bill ratesĭetermining your bill rate might seem intimidating, but it doesn’t have to be. It does not include other costs of employing the worker like taxes and insurance, or your recruiter fees (profit). Pay rate is how much you pay the contract worker. Unlike a bill rate, the pay rate only applies to the contract worker’s wage (hourly or weekly rate). Your bill rate should cover the contract worker’s wage (hourly pay rate), taxes and insurance, administrative expenses, and leave room for a decent profit margin for your staffing firm. This is usually thought of as an hourly or a weekly rate.
What does billing mean in recruitment? Your bill rate is how much you charge your client when you place a contract worker at their company.
It could be even easier using an instant quote tool like FoxHire’s but we can get to that later! What is a bill rate?
But once you know what goes into it, learning how to calculate the bill rate isn’t difficult. There are many things to think about like the state of the market, your competition, your margin, and how much your contractor is going to be making. For some recruiters, setting a contract bill rate can be a challenge. Determining how much to charge clients for contract staffing services extends beyond a contractor’s wages.
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