If you're a contractor in Canada's tech and data industry, there's a good chance you're being taken for a ride—and you might not even know it.
The Markup Has Gotten Out of Control
It used to be simple. A staffing agency or consulting firm would place you at a client, take a 25–30% markup on your rate, and everyone was happy. The agency handled sales, invoicing, and client relationships. You got steady work. The client got vetted talent. Fair deal.
That's not what's happening anymore.
Today, it's not uncommon to see firms like Robert Half, Randstad, and other large staffing agencies taking 50%, 75%, or even 100% markup on contractor rates. That means if a client is paying $150/hour for your work, you might be seeing $75—or less.
Let that sink in. Half your value is going to a company that, in many cases, sent a few emails and made a phone call.
The Numbers Don't Lie
Here's what the typical markup landscape looks like in Canada right now:
- •**Traditional markup (what it used to be):** 25–30%
- •**Current large agency markup:** 50–100%
- •**What Kyros Groupe charges:** 15–20%, capped at 25% maximum
The gap is staggering. On a $120/hour client rate, here's what the contractor actually sees:
- •**At 30% markup:** Contractor gets $84/hour
- •**At 50% markup:** Contractor gets $60/hour
- •**At 100% markup:** Contractor gets $60/hour on a $120 bill rate—the agency pockets $60/hour for doing almost nothing ongoing
- •**At Kyros Groupe (20% markup):** Contractor gets $96/hour
It Gets Worse: The Treatment Gap
The markup is only half the problem. These large consulting firms are also expecting contractors to work like full-time employees—without any of the benefits.
What contractors deal with at large agencies:
- •Longer hours than scoped, with no overtime consideration
- •No benefits, no paid time off, no job security
- •Pressure to be "always available" like a salaried employee
- •Non-compete clauses that limit future opportunities
- •Little to no professional development support
Meanwhile, the agency is billing the client as if they're providing a premium managed service. The contractor does all the work. The agency collects the spread.
Why This Happens
Large staffing firms have massive overhead—offices, layers of management, sales teams, marketing budgets. That overhead gets passed directly to the contractor in the form of higher markups. The client often doesn't know what the contractor is actually getting paid, and the contractor rarely knows what the client is being billed.
There's also a power imbalance. When you need work, you accept the terms. And these firms know it.
How Kyros Groupe Does It Differently
At Kyros Groupe, we believe the contractor doing the work should keep the lion's share of the rate. It's that simple.
Our approach:
- •**15–20% markup is our norm, never exceeding 25%**
- •Full transparency—contractors know the client rate
- •No expectation of unpaid overtime or "always on" availability
- •We treat contractors as partners, not commodities
- •Lean operations mean we don't need to gouge anyone to stay profitable
We're a small, Canadian-based consultancy. We don't have 47 floors of office space to pay for. We pass those savings to our contractors because talent retention matters more than short-term margin.
The Bottom Line
If you're a contractor working through a large staffing agency, ask yourself: do you know what the client is paying for you? If the answer is no—or if the number would make you uncomfortable—it might be time to explore alternatives.
And if you're a client paying premium rates to a staffing firm, ask yourself: is that money actually going to the talent doing the work?
The consulting industry in Canada needs a reset. Contractors deserve fair compensation, transparent terms, and respect for their expertise. At Kyros Groupe, that's not a marketing pitch—it's how we operate.