How do staffing agencies generate revenue?

Staffing agencies generate revenue by collecting fees from companies that utilize their services. These fees are typically a percentage of the annual salary of the prospective employee, ranging from 15% to 30%. Additionally, staffing agencies may charge fees for temporary staffing services, based on the hourly rate or other arrangements for contract workers. Some agencies also offer training and development programs for a fee. Companies that use these services will incur additional costs. Staffing agencies only earn money when they successfully place a new employee, giving them a strong motivation to find qualified candidates that are a good fit for the job.