How do consulting companies get paid?

I work a contact postion hired through a consultant company.

I am curious how they get paid, do they get paid a flat fee for bringing me into the current company? Do get a portion of my hourly pay? Meaning say I am getting paid $10 and hour are they getting paid $15 hour (meaning I get $10 and they get $5) .

Im currently working for a company as a contactor but may apply for a full time position in the company. My hour wages is supposed to include the fact that I get no benefits, vacations, holiday etc. Trying to figure out how much I should under my current pay I should accept since now I would be getting benefits. Also figuring if the consultant company gets an hourly portion that means the company is already paying more for me an hour than I am actually seeing so maybe I dong have to lower it too much!

I dont really need health at all its more for job security, (im always in limbo if they will renew the contract) and so I get paid for holidays and vacations.

Re: How do consulting companies get paid?

We use consulting companies all the time for our staffing business.

For us, it works like this...

If you are hourly they are charging the company you are working for more per hour than they are paying you- that's how they make their profit.

If you were hired full time, they would charge your company a fee- usually 20% of your full time yearly salary- for finding and placing you.

For us, if the contractor stays 6 months, the company is free to hire them with no fee.
If it's less than 6 months they pay a fee (prorated off the 20% depending on how long they contracted for before being hired- the longer they stay on contract, the less fee is paid)

Message edited 10/16/2020 9:35:40 AM.

Re: How do consulting companies get paid?

Re: How do consulting companies get paid?

Re: How do consulting companies get paid?

thank you!