CSP Contract Staffing & Billing Practices 2

Question 1

Which of the following best describes a 'direct placement' fee structure commonly used by staffing firms?

Accepted Answer

A one-time fee, typically a percentage of the placed candidate's first-year salary

Answer

Direct placement fees are typically a one-time charge equal to a percentage (commonly 15-25%) of the hired candidate's first-year annual salary, paid upon successful placement.

Question 2

A staffing agency charges clients $28/hr and pays workers $20/hr. What is the markup percentage?

Accepted Answer

40%

Answer

Markup = (Bill Rate / Pay Rate) - 1 = ($28 / $20) - 1 = 1.40 - 1 = 0.40 = 40%.

Question 3

Under the Fair Labor Standards Act (FLSA), who is responsible for ensuring that temporary workers receive at least the federal minimum wage?

Accepted Answer

Both the staffing agency and client company as joint employers

Answer

Under the FLSA joint employer doctrine, both the staffing agency and the client company can share responsibility for minimum wage compliance when both control aspects of the employment relationship.

Question 4

What is the primary purpose of requiring client signatures on worker timesheets before invoicing?

Accepted Answer

To verify hours worked and create an agreed-upon basis for the invoice

Answer

Client-signed timesheets verify that hours billed were actually worked and approved, reducing billing disputes and providing documentation supporting the invoice.

Question 5

A 'retained search' billing arrangement means the client pays:

Accepted Answer

An upfront fee or installments regardless of whether a placement is completed

Answer

In a retained search, the client pays upfront (often in thirds: at engagement, at candidate presentation, and at placement), committing the firm's exclusive focus to the search.

(CSP) Certified Staffing Professional Practice Test

(CSP) Certified Staffing Professional Practice Test

CSP Contract Staffing & Billing Practices 2