This is a little off the particular circumstances of topic, but highlights it is not always as straight forward as it might seem. Sometimes the mark-up is for

This is a little off the particular circumstances of topic, but highlights it is not always as straight forward as it might seem. Sometimes the mark-up is for more than is apparent - in Australia there is a 6% payroll tax that kicks in after a certain size payroll is achieved. Also, big companies often like to "write one cheque" a week/month and not deal with a lot of hassles which can consume a few admin staff continuously. My current contract was direct for years and they paid a 2.5% "supplier markup" extra to me because that is what the agency charged just for insurance postage and petties etc, at the individual scale it wasn't enough by maybe 2%, just for those issues, esp insurances. There are more issues, but even though a contractor (hourly pay) almost entirely for my 30+ year working life, I still use the agency at times as the convenience can be worth it rather than going direct and often they can find work you can't, in my circumstances. Having work vs not having work really lets you consider if you are prepared to pay them a bit to help you out, so it is just the nature of the problem sometimes.