Hiring the right talent should balance finding the perfect fit and knowing what it will cost. Whether you’re scaling up or replacing key roles, you should first know how much staffing agency salary costs. Businesses often underestimate how much they’ll need to spend, leading to budget overruns or delayed hiring. However, when you determine the standard salary rates, you can secure better candidate matches without straining your budget.

At Pearl Talent, we help businesses structure their workforce strategically by providing top-tier global talent at competitive rates. Unlike traditional staffing agencies, we source skilled professionals from regions where wages remain reasonable without compromising quality. Our hands-on vetting process helps companies hire motivated and reliable team members.

With our expertise in global talent sourcing and workforce structuring, we will explore:

• How staffing agencies calculate salary rates
• Industry-specific salary expectations
• The impact of location on salary costs
• Budgeting strategies for businesses using staffing agencies

After reading this article, you will understand how much do staffing agencies charge, make informed hiring decisions, and plan your workforce budget effectively.

Let’s dive in!

How Do Staffing Agencies Determine Salary Rates?

Staffing agency salary is the total compensation a business pays for every candidate hired. This includes the employee’s wages and the agency’s recruiting fees, which are typically 15 to 30% of the candidate’s first-year base salary.  

Staffing agencies determine salary rates using several key factors:

• Market Demand: When specific skills are in high demand, staffing agencies may suggest higher salaries to attract and retain top talent.  
• Skill Level: An employee's skills, experience, and expertise influence salary recommendations. Specialized roles, certifications, and skill-based pay models often increase an employee's pay rate.
• Job Location: The geographic location of the job significantly impacts salary recommendations. For example, employees in New York or San Francisco often earn higher wages due to the increased cost of living.

Staffing agencies help businesses and job seekers agree on fair salaries. They use market data to set competitive pay, highlight a candidate’s value, and negotiate within budget limits. By keeping communication open, they align expectations and find solutions for both sides.

When selecting the right option, employers should consider hiring urgency, job description, budget, and long-term strategy. Here are the different staffing agency fee structure for various business needs:

• Temporary Employment: Involves hiring workers for a limited time, often on an hourly or contract basis. These temporary employees are typically employed through staffing agencies and do not receive full company benefits. Temporary positions allow employers to address short-term needs, seasonal demands, or specific projects without long-term commitments.
• Temp-to-Hire Employment: An arrangement where workers are initially hired as temporary employees with the potential to transition to permanent roles. This model allows employers and employees to assess compatibility before committing to long-term employment. Temporary positions usually last 3 to 6 months, allowing employees to prove their skills.
• Direct Hire Employment: Recruits and hires employees directly onto a company's payroll for permanent positions. These employees typically receive full company benefits, including health insurance and paid time off. Direct hire positions often have a more extensive recruitment process, with roles requiring long-term commitment and stability.

Salary Expectations by Industry

Salary expectations vary significantly across industries and the type of position. Technology, finance, healthcare, and e-commerce sectors are projected to see higher-than-average increases due to rapid expansion and growing demand for skilled professionals. Here’s how salary expectations differ per industry:

1. Administrative and Clerical

Administrative and clerical roles are essential for keeping a business running smoothly. These professionals handle everything from scheduling and data management to front-desk operations and executive support. Below are the average U.S. salaries for some of the most common positions in this category.

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• Executive Assistant: $50,539 (average U.S. salary)
• Data Entry Specialist: $39,679  
• Office Manager: $86,588 
• Receptionist: $40,766  

Automation has impacted wages in administrative and clerical jobs, especially manufacturing and data entry. Machines, robots, and software now handle many tasks, causing wages to drop in these fields. Companies like Amazon are cutting warehouse jobs as automation takes over, leading to significant changes in the job market and pay.

Remote work has also influenced salary structures, with remote employees earning 8.3% more on average than their office-based counterparts. Meanwhile, companies can save approximately $11,000 annually for each employee who works remotely part-time. More than half of employers have already adjusted or plan to adjust their pay models, factoring in location-based salaries and home office stipends.

2. Healthcare and Medical Staffing

Salaries in the healthcare industry vary widely based on role, experience, and location. With the growing demand for medical professionals, wages have remained competitive, especially for skilled positions. Here are the salary expectations for key healthcare and medical staffing roles:

• Nurses: The national average wage for entry-level nurses is $47,120 annually, while those with one to four years of experience make around $72,148. More experienced nurses can earn as much as $102,990.
• Medical Assistants: Entry-level positions typically pay around $28,150 annually, while the average annual salary is $36,980. Those with over 20 years of experience can earn up to $46,640 annually, on average.
• Healthcare Administrators: Entry-level professionals make around $64,494 annually, while those with one to four years of experience earn about $72,148. The average annual salary is $80,791, with top earners making as much as $129,000.

By 2028, the U.S. could be short about 100,000 essential healthcare workers. Some states, like California and Texas, are expected to have enough staff, while others, like New York and New Jersey, may not. This shortage will likely push salaries higher in places that need more workers. Jobs like home health aides and nursing assistants are forecasted to be in high demand nationwide.

3. Information Technology (IT) and Engineering

The IT and engineering industries provide strong earning potential, with salaries influenced by experience, specialization, and demand. Here are some salary insights for various roles within IT and engineering:

• Software Developers: Backend developers earn some of the highest salaries, with a median pay of $90,000 and a typical range of $70,000 to $110,000. Front-end and full-stack developers have similar median salaries of $90,000. React developers can make as much as $120,000 at the highest level, on average.
• IT Support Specialists: IT support specialists in the U.S. earn an average salary of $65,000 annually. Additional earnings may include commissions, bonuses, or profit-sharing.
• Cybersecurity Experts: Cybersecurity salaries vary by role, with analysts earning $75,000 to $105,000 on average and Chief Information Security Officers (CISOs) making up to $250,000. High-level positions like security architects and lead penetration testers also command six-figure salaries.
• Engineers: Engineers in the United States earn an average salary of $104,651 per year, with entry-level salaries starting at $63,988. Top earners in the field can make up to $171,155 annually.

Remote work has changed IT salaries, making the market more competitive for employers and workers. On average, remote IT jobs pay $4,000 more per year than office-based roles. As companies adjust to this shift, salaries will likely keep changing to attract top talent while meeting new workplace needs.

4. Customer Service and Call Center Roles

Customer support and call center roles remain essential across various industries. Their salaries are influenced by experience, location, and job responsibilities. Here are some estimated earnings for customer service and support roles:

• Customer Service Representatives: The total estimated pay for a customer service representative is $43,738 per year, with an average base salary of $40,490. Compensation may vary based on experience, industry, and location.
• Technical Support: Technical Support professionals earn an estimated total pay of $53,618 annually, with an average salary of $49,715. Additional earnings may come from bonuses, commissions, or overtime pay.
• Virtual Assistants: Virtual Assistants have an estimated total annual pay of $51,123, with an average salary of $46,917. Earnings can fluctuate based on skill set, specialization, and client demand.

Bilingual professionals can earn 5 to 20% more than those who speak only one language, depending on the job, location, and industry. Companies value these skills because they help employees communicate with more customers, build business relationships, and handle complex questions in specific fields.

5. Skilled Trades and Manufacturing

Skilled trades and manufacturing jobs are hands-on careers requiring specialized training, certifications, or apprenticeships. These often lead to stable, well-paying jobs without a traditional four-year degree. Here are some of the most in-demand roles in the industry, with their average salaries:

• Welders: The average annual salary for welders is $45,000 to $65,000, with experienced professionals earning up to $80,000 or more in specialized industries.
• Electricians: Electricians earn an estimated total pay of $74,299 per year, with an average annual salary of $64,992.
• Machinists: Machinists earn an estimated total pay of $64,966 per year, with an average annual salary of $57,275.
• Warehouse Workers: Warehouse workers earn an estimated total pay of $42,185 per year, with an average annual salary of $38,740.

Union influence and location have a big impact on salaries in skilled trades and manufacturing. Workers in unions usually earn more with better benefits than those who aren’t. Unions also help lower the pay gap by increasing wages for less-experienced workers. Additionally, location matters. Alaska, Hawaii, and Wyoming usually pay higher wages for welders, while New York and San Diego typically pay higher wages for electricians.

How Location Affects Salary Expectations

Staffing agency salary varies based on location due to a complex interplay of economic, social, and legal factors. This variation occurs at the state, regional, and urban vs. rural levels, impacting salary expectations for employers and employees. Here are some of the factors that affect wages across states and regions:

• Cost of Living: In areas where housing, transportation, and everyday expenses are higher, wages tend to be higher to offset these costs. Major metropolitan areas like New York City and San Francisco tend to have significantly higher salaries compared to rural regions.
• Economic Development and Industry Presence: States and cities with booming industries, such as tech in California, finance in New York, and manufacturing in the Midwest, often see higher wages due to strong demand for skilled labor and economic prosperity. In contrast, regions with weaker economies or fewer high-paying industries may have lower wages.
• State and Local Labor Laws: Labor laws vary widely, impacting wages through collective bargaining rights, overtime regulations, and employment protections. Some states have stronger labor unions and public sector protections, leading to higher pay scales. Meanwhile, others have more employer-friendly policies that can keep wages lower.
• Minimum Wage Variations: The federal minimum wage is $7.25 per hour. However, many states and cities set minimum wages above the federal minimum wage. Higher state-mandated wages set a baseline that influences overall staffing agency salary pay levels, especially for entry-level and hourly positions.

In 2025, cost-of-living trends in the U.S. are shifting as well. Big cities like New York and San Francisco remain expensive, with housing driving costs up. NYC’s monthly expenses now average $5,600. Meanwhile, smaller cities and suburbs are gaining popularity as remote work allows people to seek more space and lower costs.

Social Security benefits are increasing by 2.5%, adding about $48 to retirees' monthly checks. Grocery prices vary by region, with weekly costs reaching $150 to $200 in the Northeast but are lower in the South. 21 states and 48 cities raised minimum wage in 2025, and in 55 of those jurisdictions, the wage floor will reach or exceed $15 per hour.

State labor laws, minimum wage differences, and demand for skilled workers significantly affect employment, economic growth, and workforce dynamics across the United States.

• Impact of State Labor Laws: States with right-to-work laws, such as Texas, Florida, and South Carolina, often see faster growth in manufacturing and construction jobs. These laws impact labor markets by reducing union influence. Right-to-work states also tend to spend less on public services like education and welfare, as weaker unions result in less political pressure for higher government spending.
• Minimum Wage Differences: Higher minimum wages can stimulate consumer spending and boost the overall economy by increasing low-wage workers' incomes. As of 2025, state minimum wages range from $5.15 in Georgia to $16.66 in Washington, with Washington D.C. having an even higher minimum wage of $17.50 an hour.
• Demand for Skilled Workers: By 2030, up to 12 million workers in Europe and the U.S. may have to switch careers as automation changes job requirements. High-skill jobs, especially in healthcare and STEM fields, will see more demand. At the same time, experts forecast healthcare, IT, engineering, skilled trades, and social services roles will struggle to find enough qualified workers.

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The staffing industry has variations in pay scales across different sectors and regions. Here are examples of high-paying and low-cost labor markets for staffing agencies:

High-Paying Labor Markets

• Technology and IT
• Healthcare and Life Sciences
• Finance and Accounting
• Engineering and Aerospace

Low-Cost Labor Markets

• Hospitality and Retail
• Agriculture and Farming
• Industrial and Manufacturing
• General Administrative and Clerical Roles

Salary vs. Total Employment Cost: What Businesses Should Consider

When hiring new employees, you must consider more than just the base salary. The true cost of employment includes taxes, benefits, recruiting, training, and turnover expenses, which means additional costs to your company’s budget.

Employers are responsible for payroll taxes, including Social Security, Medicare, and unemployment taxes, which adds additional expenses, up to 7.65% of an employee's salary. Benefits also play a major role, with healthcare and retirement contributions making up about 30% of total compensation costs.

When recruiting with a staffing agency, staffing agency salary fees range from 20% to 30% of an employee’s first-year pay. Beyond that, training and onboarding require further investment. The average company spends around $1,200 annually on training per employee.

Turnover costs can be even higher. Replacing an employee typically costs 50% to 60% of their salary, and this can go up to 213% for specialized roles. Higher wages can help reduce turnover. Harvard University found that increasing warehouse worker pay by just $1 per hour improved retention by 2.8%. 

Budgeting Strategies for Businesses Using Staffing Agencies

There are many benefits to using staffing agencies, including making the hiring process easier, but be sure to properly budget for hiring costs. Businesses must balance competitive salaries with cost-saving measures to get the best value. Here are some ways to negotiate better staffing agency salary rates and explore remote staffing options:

1. Define Hiring Priorities

When planning your hiring budget with a staffing agency, start by figuring out which roles need the most investment and where you can save. Some positions are essential and worth spending more on, while others may not require full-time employees. Using contract or temporary workers lets you flex your team as needed and helps you manage costs while still getting the right talent.

2. Compare Industry Benchmarks

Offering competitive salaries helps attract top talent while ensuring you’re not overspending. To stay competitive, compare your salary offers to industry standards before hiring. Use resources like LinkedIn, Glassdoor, Payscale, and the Bureau of Labor Statistics to research salary trends.

3. Negotiate with Staffing Agencies

When working with a staffing agency, set clear salary limits to control costs. Be upfront about your staffing agency salary budget and expectations, and don’t hesitate to negotiate. If you’re hiring in large numbers or planning a long-term partnership, you may be able to secure better rates or discounts.

4. Consider Remote and Hybrid Staffing

Hiring remote employees in lower-cost regions can help you save on labor expenses. Nearshore and offshore staffing options allow you to access skilled professionals at more affordable rates. Also, you can benefit from different time zones through round-the-clock productivity and faster project turnaround.

Key Takeaway

Understanding staffing agency salary is essential for making informed hiring decisions. Offering compensation below market rates can deter top talent, while excessive spending strains your budget without added value. To find the right balance, take the time to research industry salary benchmarks, clearly define your hiring priorities, and strategically negotiate with staffing agencies.

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Additionally, not all agencies offer the same value, so choosing the right one is crucial. The best recruitment agencies are transparent about pricing, understand your industry, and provide flexible solutions tailored to your needs.

Looking for a staffing agency to hire new talent? Pearl Talent helps companies cut hiring costs by sourcing skilled professionals from the Philippines, South Africa, Colombia, Mexico, and Ecuador. Our local recruiters find top candidates who are carefully vetted so you can get high-quality hires at competitive salaries. Contact Pearl Talent today to scale smarter while keeping costs under control.

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