Temp-to-perm conversion fee

Definition

What a client owes the agency when it hires a placed worker onto its own payroll.

Why It Matters

Every client agreement names a fee and a clock, and the two vary enough that one book's conversions are a healthy revenue line and another's are the mechanism by which clients take the best workers for free. Read the schedule: a fee that scales down the longer the worker has been on assignment is normal, one that reaches zero after a few months is a discount the seller has been giving away, and a silent agreement is worse than either. It also reads as lumpy revenue in the accounts, so check whether a good year was placements or conversions before pricing the run rate.