Staffing Glossary
Markup
The spread expressed as a percentage of the pay rate: (bill − pay) ÷ pay.
Also called: staffing markup rate, temp agency markup, markup vs margin
A $9 spread on an $18 pay rate is a 50% markup. Markup is the number most staffing contracts and rate sheets are quoted in, but it's easy to confuse with gross margin — the same $9 spread is only a 33% margin, because margin divides by the bill rate instead of the pay rate.
Mixing the two up is one of the most common staffing pricing mistakes: quoting a "50% margin" when you mean a 50% markup understates what you actually need to charge.
Put it to work:
Related terms
Run the Whole Vocabulary in One Platform
Bill rates, margins, placements, and payroll, all in one system at $0 recruiter seats.