What’s cheaper? Upshift vs. hiring yourself vs. staffing agencies?

While it is tempting to think about labor as simply the hourly rate multiplied by the time worked, there are additional cost factors that impact the overall bill rate.

Additionally, transparency, flexibility and financial control are key benefits of partnering with Upshift that you might not get while hiring yourself or through a staffing agency.

Our partners have the ability to set their own rates and shift lengths to attract the talent they need to meet the changing demands of their business.

The actual costs of hiring yourself in a hotel

In a standard hotel, employers pay the hourly rate times the effective benefits percentage. There are also hidden costs like acquisition, retention, and turnover.

The actual costs of staffing agencies

Contract labor companies negotiate a wage with the employer and then add markups ranging from 60% to 100%, then add fees for benefits, insurance, and the like.

Upshift is transparent in that partners are charged the hourly rate and a fixed low markup generally ranging from 42% to 50%, depending on the partners’ requirements and location.

Generally, partners pay the same for an Upshifter as they would for a member of their team after all costs are accounted for. However, there are no hidden costs with Upshift like acquisition, retention, or turnover.

The actual costs of hiring - a comparison

*This is an approximate value. Your actual mark-up can be found in your contract or relationship agreement.

Additional benefits of control

Partners can set rates to meet their needs with the confidence that there are no hidden fees and that the overall costs are in line with their budget.

If a partner was planning on spending $15 an hour with a traditional contract labor company, then the daily cost would be about $209, as outlined below. For the same $209, a partner could post for a $19 an hour Upshifter and attract a premium talent.

Our partners have the ability to control the amount they spend and the talent level they attract while remaining fiscally sound.

You can hire Upshifters full-time, too

Our partners also have the benefit of being able to work with an Upshifter, then onboard them after a short period of time, as opposed to contracting companies that discourage hiring their talent. This also saves money on traditional hotel hiring as turnover can be damaging financially.

A closer look at your bill rate

Upshift Bill Rate

(Posted Rate x Time) x Markup

Posted Rate – You set this every time you post a shift and can be changed to reflect the talent level and need you are targeting.
Time – Hours Worked accessible in real- time.
Markup – Determined when you sign your relationship agreement. Generally 42% – 50% depending on your requirements.

Contracts Bill Rate

((Rate x Time) x (Markup)) + Fees

Rate – Rate set at the time of contract. Usually re-negotiated yearly.
Time – Hours Worked clocked by the vendor or a third-party system.
Mark Up – Determined when you sign your contract. Generally 42% – 50%.
Fees – Insurance, Meals, Uniforms, Benefits, etc.

Contact your Account Representative today if you have any questions about your Bill Rate, or if you want to better understand how you can attract premium talent through Upshift.