What is Markup?
The percentage added to the temporary employee’s hourly pay rate to reach the bill rate. (For example, a $15.00 bill rate and a $10.00 pay rate would compute to a 50% markup.) The markup percentage includes all selling, recruiting, general, direct payroll and administrative costs associated with providing temporary help services, plus profit. In the temporary staffing industry, markups can vary even for a single supplier depending on the extent of direct recruiting, training, and other costs associated with providing a specific employee for a specific client assignment.