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Great question! There are multiple ways to handle this. Some are able to increase the bill rate to make room for the per diem. Other times, clients will pay Per Diem separately as a unique line item on the invoice. This will depend on your client and what they are willing to do in accordance with your contract.

You're welcome!

I have a ton of questions for you. How can I contact you? I am trying to start a “task force” type staffing agency but I need your advice and expertise on how to formulate a game plan. You have already given great insight but I need a few more questions answered. Thank you.

@@cascamdes Great! Feel free to book a demo with our team here > www.foxhire.com/book-a-demo/

In this example the gross profit margin would be 56%/ per employee/ per hour. However there will be costs that come out of that 56% like taxes, insurance, etc (aka - employer burden). You'll most likely walk away with 20-35% of the pay rate as net profit depending on your costs. Again that net profit would be per employee/per hour.

@@foxhirehow it that profitable for them if we are getting payed more than the employee?

@@abdel._mamoune Profitable for who?

@@foxhirefor the company that is hiring

@@abdel._mamoune It will be a cost to that organization, and it will be up to that organization whether they feel the cost is feasible or not. However, there are strong value propositions for contract staffing, and many organizations use staffing organizations regularly.

Hi Dan! Good question. There are three numbers you are looking to identify. You seem to already have the first, which is the pay rate. From there you need to apply a mark up percentage, which will ultimately help you identify the third number, which is the bill rate. Given the example we did in the video, you would apply a 56% markup to the $25/hr. pay rate. That would give you a bill rate of $39/hr.

​​@@foxhireokay perfect! Let's assume a company wants to do business and they want pricing. How would I even know what markup to come up with? I'm trying to find a way to calculate all three and exactly how to go about it... I would need to know what to add subtract and divide and what profit margin

@@DanSalinasMusic Good questions. Some of that information is going to come from your industry and some from your own knowledge base. For pay rates you can use the Bureau of Labor Statistics. It's a public site with free data. That is the only number you really need to look up. From there your mark up will really depend on your industry and how much profit YOU want to make. We recommend a minimum of 40% but you could charge as high as 70-100% depending on the industry. That markup will allow you to develop a bill rate (using the math in the video). Hope that helps!

@@foxhire Ok I figured out Mark-up/Bill Rate and Pay Rate I just need to figure out net and gross margin. If you can help with a model example would be 👌🏽 Example: Apprentice Plumbers 20.00 (pay rate) multiplied by 1.40% (markup)=28.00 (Billrate) would give me what Gross profit/net. How do I figure that out?

@@DanSalinasMusic Good questions! Gross margin would simply be Bill Rate minus Pay Rate. However, net margin will depend on your costs. Those costs could include FICA, SUTA, FUTA, Workers Comp, and more employer related costs. That is true unless you use an Employer of Record (EOR) like FoxHire. In that case you could just subtract the EOR fee/price from the gross margin to get your net margin.

Hi! Yes there is an integration between FoxHire and Loxo's technology, which makes it easier to use both along side each-other. Additionally we evaluate government opportunities on a case by case basis. We have supported prime contractors and been a prime contractor ourselves in the past. If you have interest in learning about any of these things we recommend booking a demo with our sales staff here ➡ www.foxhire.com/book-a-demo/

@@foxhire thank you so much for the information!!

Hi! 1.56 or 56% mark up is the average we see here at FoxHire amongst the recruiting/staffing firms that use our Employer of Record (EOR) services. That's just an anecdotal average number from our internal data. That number is not necessarily the average in every industry.

Here you go ➡ try.foxhire.com/conversion-fee-language/

You're welcome! Thanks for watching!

Glad you enjoyed it! Hope it helps you make a placement!

​@@foxhireheyy, when we calutate W2 with benefits then we divide by 2080 but when we hire candidate W2 without Benefits, we divide by 1920

@@himanshuyadav6672 If that works for you then great, but ACA requires anyone working over 30 hours to have access to benefits. So, if they choose benefits you will need to account for those costs.

Thanks!

Great questions Nkem! Funding is part of our standard fee. We do not charge separately like many factoring companies do.

Aaron, please feel free to reach out to us via our website at www.foxhire.com

Thanks!

@@foxhire yw. I'm still looking to land my first contract but will tap in with you when I do!

Great question, Paul! FICU, SUTA, FUTA, and Workers compensation are part of your "burden", which would need to be factored into your bill rate. Depending on which state, county, and city you are placing in, the burden would be different. Also, workers comp can vary in cost by industry (workers comp code), so it would be helpful to have ALL of those rates before quoting. We wouldn't be able to give you all the rates because many are specific for each business but a good rule of thumb is that a burden should be on average between 9-15% depending on location and industry. Hope that helps! You could also use an employer of record if you didn't want to cover those costs yourself, which is what we do :).

@@foxhire thanks for the info! Very helpful indeed