I never realized how far removed contractors are from what companies actually pay
I used to think staffing agencies were just adding a small buffer on top of contractor pay.
Then I saw the numbers.
A contractor earning something like $50 an hour is often part of a deal where the client is paying significantly more once you include agency margin, overhead, risk buffers, and everything else that never shows up on the contractor’s side of the conversation.
What gets me is not even the markup itself, it’s how disconnected the three perspectives are. The contractor thinks in hourly rate, the client thinks in cost center budgets, and the agency is sitting in the middle turning both into a workable margin.
It feels like the same work exists in three completely different financial realities depending on where you are in the chain.