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Large buyers pay less in temp-to-perm conversion fees than smaller buyers, according to new research by Staffing Industry Analysts. Buyers with 100,000 or more internal employees paid a median temp conversion fee of 11 percent of a temp’s annualized salary when hiring took place after one month on the job. In comparison, buyers with between 1,000 and 4,999 internal employees paid a median 20 percent.
Conversion fees for large buyers were still lower after a temp spent three months on the job. The median fee at the largest buyers was 7 percent of a temp’s annualized salary compared to 10 percent at the firms with 1,000 and 4,999 internal employees.
The lower amounts could reflect discounts for large accounts. However, after six months of a temp being on the job, the median conversion fee was zero percent for buyers of all sizes.
For more on conversion fees, download the full report by clicking here.
This data is based on findings from Staffing Industry Analyst’s 2013 Contingent Buyers Survey, conducted in the second quarter of 2013, and reflect the opinions of 187 contingent workforce managers from companies with at least 1,000 employees.