Definition
A conversion fee is the charge a business pays when it hires a staffing agency's temp worker directly onto its own payroll. It compensates the agency for recruiting and screening the worker. Terms vary widely: some agencies charge a flat fee, some a percentage of salary, and many reduce or waive the fee after the worker has logged a set number of hours. At Crew Staffing Pros the fee decreases as hours worked increase. Always read the conversion clause before you sign, not when you want to hire.
This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.