Staffing Glossary
Plain-language definitions of common staffing and hiring terms — from bill rate and markup to temp-to-hire and employer of record.
AssignmentAn assignment is a specific engagement in which a staffing agency places a worker at a client for a defined role, location, and period.Bill RateA bill rate is the hourly amount a staffing agency charges its client for a placed worker's time — as distinct from the pay rate the worker actually receives.Co-EmploymentCo-employment is a relationship in which two organizations — commonly a staffing agency and its client — each hold some of the legal responsibilities of an employer for the same worker.Contingent WorkforceA contingent workforce is the part of a company's labor force that is non-permanent — temporary workers, contractors, and agency-placed staff engaged as needs arise rather than as permanent employees.Contract StaffingContract staffing engages a worker for a fixed term or a defined project — often through an agency that serves as the employer of record for the duration.Conversion FeeA conversion fee (sometimes called a buyout) is the amount an employer pays a staffing agency to move a temp-to-hire worker onto the employer's permanent payroll.Direct HireDirect hire is a placement in which a staffing agency recruits and screens a candidate whom the employer hires directly as a permanent employee — on the employer's payroll from day one.Employer of Record (EOR)An employer of record (EOR) is the entity that is the legal employer of a worker for payroll, tax withholding, and compliance purposes, even though a different company directs the worker's day-to-day tasks.Managed Service Provider (MSP)A managed service provider (MSP) is a company that manages another organization's contingent-workforce program — coordinating multiple staffing suppliers, usually with the help of a vendor management system.MarkupMarkup is the percentage a staffing agency adds on top of a worker's pay rate to arrive at the bill rate charged to the client.OnboardingOnboarding is the process of getting a newly placed worker ready to start — completing paperwork and compliance checks, and providing the orientation and access the role requires.Pay RateA pay rate is the hourly wage a staffing agency pays the worker directly, before the markup that produces the bill rate charged to the client.Placement FeeA placement fee is the one-time amount a staffing agency charges for a successful direct-hire placement — the compensation for sourcing and delivering a permanent hire.Right-to-HireRight-to-hire is a provision in a staffing contract that gives the client the option to convert a contract or temporary worker into a permanent employee, often after a specified period.Seasonal StaffingSeasonal staffing adds temporary workers to cover a predictable, recurring peak in demand — such as the holiday retail rush, a harvest, tax season, or summer tourism.Staffing AgencyA staffing agency is a firm that recruits, screens, and places workers with employers — on a temporary, temp-to-hire, contract, or permanent basis.Temp-to-HireTemp-to-hire (also called temp-to-perm) starts a worker on a temporary, agency-payrolled assignment with the option to convert them to the employer's permanent payroll after a trial period.Temporary StaffingTemporary staffing places a worker with an employer for a defined period — to cover a leave, a seasonal peak, or a short-term project — with the agency acting as the employer of record.Time-to-FillTime-to-fill is the length of time it takes to fill an open role — typically measured from when the position is opened or posted to when a candidate accepts the offer.Vendor Management System (VMS)A vendor management system (VMS) is software a company uses to manage its staffing suppliers and contingent workforce — handling requisitions, candidate submissions, timesheets, and billing in one place.
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