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Profitability in staffing: Why flat rates beat % on charges

Monday 29 Sep 2025

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By OMJ Team

Flat Rate Staffing
Workforce Profitability
Hospitality & Events Staffing
Digital Staffing

For many businesses, staffing agencies make it harder, not easier to protect margins. That’s because the traditional model adds layers of hidden costs, which are traditionally around 22.6% on costs (holiday pay, sick leave, ACC etc) plus a 15-20% agency margin on top of that, in agency fees. The more you pay your staff, the higher those costs climb.

Our model is different: OMJ charges a flat $5 per hour. That’s it. No on-costs, no percentage increases just a simple, transparent fee that lets you stay in control. That is because our temps are contractors, and not agency employees. 

Here’s how it plays out in the real world.

 

 

Four chefs preparing food at counter in a row in a professional kitchen

Case Study: Hospitality - Food and Wine Show

Big events like a Food and Wine Show require large numbers of casual staff: bar staff, servers, chefs and runners. 

For a big event like a Food and Wine Show, you might pay casual staff $28/hr.

Traditional model:

  • $28/hr + 22.6% on costs = $34.33/hr

  • Add 15% margin = $39.48/hr total (which is what you as the client, would pay the agency)

Our model:

  • $28/hr + $5 flat fee = $33/hr total

That’s a $6.48 saving per hour, per staff member.

For 20 staff working an 8-hour shift, that’s over $1,000 saved in just one day. 

With our flat rate model, that cost doesn’t increase as hourly wages rise. You know upfront what you’ll pay to hire, no matter the rate, and you keep the difference in your pocket. The result? Higher profitability, even during high-demand events.

Warehouse worker taking package in the shelf in a large warehouse in a large warehouse

Case Study: Warehousing - Pre-Christmas Rush

The few months before Christmas is crunch time for warehouses. Orders spike, overtime hours increase, and you need reliable staff to meet demand.

In the lead-up to Christmas, warehouses often need extra staff at around $30/hr

Traditional model:

  • $30/hr + 22.6% on costs = $36.78/hr

  • Add 15% margin = $42.30/hr total (which is what you as a client, will pay the agency)

Our model:

  • $30/hr + $5 flat fee = $35/hr total

That’s a $7.30 saving per hour, per worker.

For 15 staff working 50 hours that week, you save $5,475 in just one week.

With our flat rate, you still get the flexibility to scale up your workforce without watching your costs balloon as wages climb. That extra money can go straight back into your margins, your staff incentives, or your bottom line.

Two creative millenial small business owners working on social media strategy using a digital tablet while sitting in staircase

Why flat rates & digital staffing wins

 

  1. Predictability Know your staffing costs in advance.

  2. Profitability Protect your margins, no matter what you pay your staff.

  3. Fairness Reward your team with higher pay without being penalised with higher agency fees.

  4. Scalability Add staff quickly without fear of ballooning costs during peak demand.

 

The bottom line

Whether you’re running a bustling bar at a Food & Wine Show or scaling up your warehouse team in the Christmas rush, profitability comes down to cost control.

With a simple $5 flat hourly fee, you get the people you need, when you need them without the hidden extras.

Transparent. Fair. Profitable.

 

 

 

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compared to traditional temp agencies (approx)

  • All values are ex GST
  • Indicative on-costs of 22.6% which includes Kiwisavercontribution, annual leave, sick leave.
  • Indicative temp agency fee / commission of 15%

Transparent pricing that saves you hundreds

With OMJ, you cut out agency commissions and hidden on-costs—saving you around $300 (ex GST) per temp per week. Our simple flat-fee model means you know exactly what you’re paying, with no surprises.