What does a temp agency cost? A clear overview for employers
Many employers wonder exactly what working with a temp agency costs. Rates can vary widely and are often far from transparent. In this article, we give you a clear overview of how temp agencies structure their costs, which factors influence the price, and how to compare those costs with other forms of temporary employment.
How is a temp agency's cost calculated?
The costs you pay as an employer to a temp agency are made up of several components.
The temp worker's gross salary
The starting point is always the employee's gross salary. This salary must at least match the salary scales of the applicable Joint Committee. The temp worker is entitled to the same pay as a permanent employee in the same role.
Social security contributions and insurance
On top of the gross salary come the employer's social security contributions. In Belgium, these amount to roughly 25% to 35% of the gross salary, depending on the sector and any target-group reductions.
The temp agency's coefficient or margin
The temp agency adds a coefficient (also called a margin or markup) on top of the labour cost. This coefficient covers:
- Administrative costs (contracts, Dimona (immediate employment declaration), payroll processing)
- Recruitment and selection
- Guidance and follow-up
- Risks (illness, occupational accidents)
- The agency's profit margin
This coefficient typically ranges between 1.5 and 2.5 (or 50% to 150% on top of the labour cost).
Concrete calculation examples
Example 1: Administrative clerk
- Gross salary: €2,500/month
- Social security contributions: €750 (30%)
- Total labour cost: €3,250
- Temp agency coefficient: 1.7
- Invoice to employer: €5,525/month
Example 2: Logistics worker
- Gross salary: €2,000/month
- Social security contributions: €600 (30%)
- Total labour cost: €2,600
- Temp agency coefficient: 1.8
- Invoice to employer: €4,680/month
Please note: these examples are indicative. The actual costs depend on many factors.
Which factors influence the price?
Type of profile
Hard-to-find profiles (IT specialists, engineers) carry a higher coefficient than roles with plenty of available candidates.
Volume and duration
Large volumes or long-term partnerships can lead to lower rates. Temp agencies often offer volume discounts.
Sector and Joint Committee
Some sectors have higher social security contributions or more complex regulations, which translates into higher costs.
Flexibility
Highly flexible deployment (day contracts, last-minute calls) is more expensive than stable scheduling.
Extra services
Services such as preliminary testing, training or specific screening push the price up.
Comparison: temp agency vs. payroll vs. hiring yourself
| Aspect | Temp agency | Payroll | Hiring yourself |
|---|---|---|---|
| Recruitment costs | Included | Arrange yourself | Arrange yourself |
| Administration | Fully outsourced | Partly outsourced | Fully in-house |
| Flexibility | Maximum | High | Limited |
| Total cost | Highest | Moderate | Lowest (with good management) |
| Risks | With the agency | Shared | With the employer |
When is a temp agency cost-efficient?
A temp agency is especially worthwhile when:
- You need temporary staff quickly without recruiting yourself
- You need flexible deployment (peak periods, seasonal work)
- You want to limit the risk of hiring
- You have no in-house HR capacity
- You are looking for hard-to-find profiles
When is payroll a cheaper alternative?
If you recruit yourself or already have candidates through your own network, payroll can be a more attractive option. In that case, you only pay for the administrative processing, not for recruitment and selection. Take a look, too, at the advantages and disadvantages of payroll.
With payroll:
- A lower coefficient (typically 1.2 to 1.5)
- You keep control over recruitment
- Flexibility is preserved
- Administration is outsourced
Tips to keep costs under control
- Request quotes from several agencies: rates vary widely
- Negotiate the coefficient: there is room to move, especially with volume
- Ask about hidden costs: are there extra charges for administration or changes?
- Consider long-term arrangements: longer contracts often bring better rates
- Look at the total picture: the cheapest option is not always the best one
How Recruit helps you
Looking for a cost-efficient alternative to traditional temp agencies? With Recruit, you only pay for what you use, with no hidden costs.
With Recruit:
- Contracts in under 60 seconds: create trial and temp contracts without the hassle
- Automatic salary calculation: correct pay in line with current legislation and your Joint Committee
- Dimona and social documents: we handle every declaration, so you can focus on your business
- 24/7 personal support: always a dedicated contact who knows your company
- No fixed monthly costs: pay only for what you use
Try Recruit or get in touch with our HR experts for tailored advice.
Disclaimer: This article is for informational purposes and does not replace legal advice. The amounts and percentages mentioned are indicative and may vary. Always check current rates with your temp agency or payroll partner.