Why No One Publishes an Average Staffing Agency Margin
Search for a staffing agency’s average profit margin and the trail runs cold at the same two names every time: IBISWorld’s industry report and RMA’s Annual Statement Studies, both subscription products that do not publish their headline figures to the open web. No free, current, audited substitute with a specific industry-average margin percentage exists to cite in its place, and this page does not invent one.
What the open web does carry, in detail, is what a staffing firm sells for. A sale price is not the same number as an operating margin, but it is not disconnected from it either. A buyer pricing a staffing firm is pricing that firm’s margin quality directly into the multiple offered, which makes valuation-multiple data the closest public stand-in available for the margin figure nobody publishes outright.
The EBITDA Multiple Range, By Specialty
CT Acquisitions’ 2026 staffing-valuation guide tables a specialty-by-specialty range: light industrial and commodity staffing at 4 to 5x EBITDA, general clerical and administrative at 4.5 to 5.5x, IT staffing generally at 5.5 to 7x and IT contract-to-hire specifically at 6 to 8x, healthcare travel nursing at 5 to 6.5x and healthcare locum tenens at 6 to 8x, finance and accounting at 6 to 7.5x, and engineering at 5.5 to 7x. The spread from bottom to top of that table, 4x at the low end to 8x at the high end, is a two-fold difference in what an otherwise similar-revenue firm sells for, purely as a function of which specialty it operates in.
A separate, independently sourced financial benchmark points the same direction without measuring the same thing directly. RecruiterFlow’s own revenue-per-recruiter analysis found that top-quartile recruiters generate roughly $168,000 more in annual revenue than the average recruiter, a gap the source attributes to conversion quality rather than raw dial or activity volume. A desk converting better, not dialing more, is the same story the valuation-multiple spread tells at the firm level.
What Moves the Number Inside a Specialty
The specialty a firm operates in sets a range, not a fixed number, and CT Acquisitions names the specific levers that move a firm up or down inside that range. A book carrying 28% or higher gross margin adds 0.5 to 1 full turn to the sale multiple. Conversion-fee revenue, the fee earned when a temp placement converts to a permanent hire, adds 1 to 2 turns once it reaches 15% or more of the book, because, in the source’s own words, conversion fees run “nearly 100% gross margin,” a far cleaner dollar than a bill-rate spread that still has payroll and burden sitting on top of it.
The same mechanics work in reverse. A single client above 25% of revenue compresses the multiple 10% to 25%, invoice factoring above 2.5% of revenue compresses it a further 5% to 10%, accounts receivable aging past 90 days on 20% or more of receivables compresses it 10% to 15%, and an outdated technology stack compresses it 5% to 10% more. A firm sitting in the strong end of its specialty’s range and a firm sitting in the weak end are usually the same specialty carrying a different mix of these five factors, not two fundamentally different businesses.
The Numbers
Light industrial and commodity staffing firms sell for 4 to 5x EBITDA, the lowest multiple range of any specialty CT Acquisitions tracks for 2026.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
General clerical and administrative staffing firms sell for 4.5 to 5.5x EBITDA.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
IT staffing generally sells for 5.5 to 7x EBITDA; IT contract-to-hire reaches 6 to 8x, tied for the highest ceiling CT Acquisitions tracks.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
Healthcare travel nursing sells for 5 to 6.5x EBITDA; healthcare locum tenens reaches 6 to 8x, tied with IT contract-to-hire for the highest ceiling tracked.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
Finance and accounting staffing sells for 6 to 7.5x EBITDA; engineering staffing sells for 5.5 to 7x.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
A specialty book carrying 28% or higher gross margin adds 0.5 to 1 full turn to a staffing firm’s sale multiple.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
Conversion-fee revenue at 15% or more of a firm’s book adds 1 to 2 turns to the sale multiple, since conversion fees run close to 100% gross margin.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
A single client above 25% of revenue compresses a staffing firm’s sale multiple 10% to 25%; invoice factoring above 2.5% of revenue compresses it a further 5% to 10%.
CT Acquisitions, Staffing Company Valuation Multiples in 2026
Top-quartile recruiters generate roughly $168,000 more in annual revenue than the average recruiter, a gap attributed to conversion quality, not activity volume.
Sources
The external data in this article draws on the sources below. Figures described in the text as estimates or industry triangulations are directional and are not attributed to a single dataset.
- CT Acquisitions, Staffing Company Valuation Multiples in 2026
- RecruiterFlow, Revenue Per Recruiter Benchmark
