Strategic negotiations based on current salary market information are critical to realizing savings through controlled temporary and permanent labor costs. PeopleTicker gives you a competitive advantage with insight into dynamic job market rates and conditions so your organization can create a real-time pay philosophy.
PeopleTicker helps you define expectations for:
Types of Staffing agency negotiations Since you are not affecting existing pay and billing arrangements, the negotiation of new placements may be easier than renegotiating an embedded base of contingent workers. However, the bottom line impact may be just as significant.
The PeopleTicker Rate Card is an invaluable guide during negotiations, providing you with accurate market rate information.
Savings opportunities Often, the lowest hanging fruit in terms of savings can be found by reviewing every existing and new hire, even if a Rate Card is already in place. Savings opportunities in the overall Bill rate are available whenever a new worker is contracted or an existing worker contract is renegotiated.
For example, the type of contingent worker being placed can greatly affect the final Bill rate. Without understanding whether or not the contingent worker being placed is a W-2 employee of the agency or a subcontractor (IC/1099) to the agency, the agreed upon markups may result in additional costs to the hiring company.
How a contingent worker's status may affect the Bill rate and the agency's profits:
The main cost difference in the above example is based on the taxes the agency must pay for a W-2 employee, rather than the IC(1099).
On the surface, a 30% markup is competitive. However, by understanding that the placement was not a W-2 employee, a lower markup should have been negotiated. This could have led to savings of approximately $10,000 per year on this single placement.
Average Markup range by employee type: