Invoice Rate

    What is an invoice rate?

    Invoice rates are the hourly or daily rate a recruitment agency will charge a client for a temporary employee working onsite. Generally invoice rates consist of the candidate’s pay rate, payroll costs and the agencies margin/mark-up.

    Determining Temporary Rates

    Determining a temporary invoice price can be a difficult process involving a number of factors, including the nature of the work, retail price for that industry, labour costs, overhead expenses and profit margins. In order to determine a temporary invoice rate, we recommend looking at the following aspects:

    Understand the Scope of Work

    By understanding the work that will need to be undertaken, you can determine how much the total amount for the services should be.

    Research Market Rates

    It’s important to have an understanding of what the standard rate or salary is for the work that will be carried out. Make sure to keep it local as well, so that you aren’t getting an hourly rate for a place that requires a higher salary than your city.

    Calculate Labour cost

    In order to ensure that the hourly rate will cover the candidate’s pay rate, payroll costs and the agency’s margin, you’ll need to calculate to make sure that you have enough cash flow to continue recruiting. Don’t forget that an invoice cost is typically pre-tax as well, so if you want your employees to be earning a certain amount, adjust for tax costs.

    These are just a few of the things that most companies will want to bear in mind as they are determining the invoice costs for their temporary employees. There is a minimum wage that the government has implemented, so be sure that your salaries reflect the legal hourly rate.

    Determining Permanent Rates

    A permanent rate can relate to an annual salary or a long-term arrangement for monthly compensation for services provided. Whilst you may think that a business should consider further information when comparing permanent and temporary rates, the amount that you should be paying, be paid, or invoice for, will actually consider all of the above as well.

    No matter if you’re determining invoice rates for permanent or temporary employees, we can help.

    No matter if you’re determining invoice rates for permanent or temporary employees, the Eclipse software can help with its Business Intelligence, CRM, and ATS features.