Glossary · Commercials
What is Spread
Definition
The cash difference between bill rate and burdened pay rate, quoted in currency per hour rather than as a percentage.
Applies to: US and UK · Reviewed by James Doyle
In practice
Experienced contract desks manage in spread because it survives rate changes. A $11.25 spread on 40 hours is $450 a week per contractor, whatever the headline percentage says.
Spread per head times headcount times utilisation is the fastest sanity check on whether a desk can carry a consultant's salary.
Related terms
Gross margin
The share of the bill rate left after paying the contractor and their employment burden. It is the money the agency actually runs on.
ReadBill rate
The hourly rate an agency charges its client for a contractor. It has to cover the pay rate, employment burden, funding cost and the agency's margin.
Read
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