The cost difference between a staffing agency and direct hire is not just the markup. It is the visibility of the markup. An agency sends you a bill rate. You do not see what the worker earns and what the agency keeps. A direct marketplace like Djobzy states both numbers separately: the worker’s rate and the 15% platform fee. This guide compares the two models honestly, because neither is always the right answer.

What a staffing agency actually charges

Agencies charge a bill rate that includes the worker’s pay plus the agency’s margin. That margin covers recruiting, screening, payroll processing, employer taxes, insurance, and profit. According to PayrollFunding.com (April 2026), typical temporary staffing markups range from 25% to 50% or more above the worker’s base pay, depending on the role, the industry, and the agency.

So if a worker earns $25 per hour and the agency markup is 35%, you pay $33.75 per hour. The worker sees $25. The agency keeps $8.75. For a five-person team working an eight-hour shift, that is $350 in agency margin for one day.

That margin is not necessarily unfair. Agencies carry real costs: payroll taxes, workers’ compensation, recruitment overhead, and the risk of non-payment. But the business paying the invoice often cannot see the breakdown, and that opacity is the core problem.

What direct hiring through a marketplace costs

On Djobzy, the structure is different. Workers keep 100% of the agreed worker price. Employers pay a 15% platform fee on top of that price. Both numbers are visible before you confirm.

Using the same example: if the worker’s rate is $25 per hour, you pay $25 plus 15%, which is $28.75 per hour. The worker receives $25. Djobzy receives $3.75. You can see both figures and decide before you commit.

That is less than the agency scenario, but the comparison is not purely about price. It is about what each model includes and what it does not.

What you give up with direct hire

Agencies provide services that a marketplace does not. If those services matter to your business, the agency markup may be worth it.

• Payroll processing. The agency is the employer of record. They handle CPP, EI, vacation pay, T4s, and remittances. On a marketplace, the worker is an independent contractor and handles their own tax obligations.
• Screening and vetting. Agencies screen candidates before placing them. On a marketplace, you review Career Passports, verification levels, and reviews yourself. That gives you more information in some ways (you see the actual reviews from past clients) and less in others (the agency may have done reference checks you would not do).
• Replacement guarantee. Many agencies will replace a worker who does not work out. A marketplace does not guarantee replacements.
• Compliance risk. If you use an agency, the contractor-vs-employee classification risk sits with the agency, not with you. If you hire directly, understanding the CRA’s tests for contractor status is your responsibility.

When each model makes sense

Use an agency when: you need someone vetted, trained, and guaranteed for a specialised role; you do not want to handle contractor classification risk; you need the agency to carry payroll and insurance; the role requires specific certifications the agency verifies.

Use a marketplace when: you want to see the worker’s rate and the platform fee separately; you want to build direct relationships with workers you hire repeatedly; the work is local, short-term, or shift-based; you are comfortable reviewing profiles and making your own hiring decisions; you want to keep costs visible and controlled.

Most small businesses use both, depending on the role. Agency for the operations manager. Marketplace for the Saturday cleaner. The point is not that one model is always better. It is that you should know what each costs and what each includes before you choose.

About Djobzy

Djobzy is a location-based work and services marketplace with live map discovery. It connects people who need work or services completed with workers, freelancers, professionals and service providers who can provide them locally or remotely. Users can find opportunities, hire help, offer services and build portable reputation through Djobzy’s Career Passport. Workers pay zero commission and keep 100% of the agreed worker price, while employer and client platform pricing applies.

Try one hire and compare for yourself

The best comparison is a real one. Post a role on www.djobzy.com, review the Career Passports of the people who respond, and see what the total cost looks like next to what your agency charged for the same type of role. Then decide based on your own numbers.