The Hidden Costs to Low Bill Rates

Staffing agencies are a popular option for companies looking to fill temporary positions quickly and efficiently. You may be tempted to go for agencies with the lowest bill rates, however, the low billing rates offered by some staffing agencies can be deceptive, as there are often hidden costs associated.

The Hidden Costs of Low Billing Rates Impact Areas Such as:

Customer Service

One of the hidden costs of low billing rates is the level of customer service provided to clients. Staffing agencies that offer lower rates may not have the resources to provide the level of customer service that clients expect. For example, lower billing rates may mean fewer account managers, which can result in slower response times to client inquiries or requests. You may find yourself putting in a lot more work than you expected to get your desired result.


Another hidden cost of low billing rates is the level of training provided to employees. Staffing agencies that offer lower rates may not provide their employees with the necessary training to perform their jobs effectively. This can result in employees performing their duties poorly, and also a higher rate of turnover among temporary workers, which can be disruptive to the client company’s operations.

Insurance Coverage

The level of insurance coverage is also a hidden cost associated with low billing rates for staffing agencies. Lower rates may mean less comprehensive insurance coverage, which can be a significant risk for the client company. For example, a temporary worker who is injured on the job may not be covered by the staffing agency’s insurance policy, resulting in potential liability for the client company.


Finally, low pay rates can also be a hidden cost of low billing rates for staffing agencies. Staffing agencies that offer lower rates may not pay their temporary workers a living wage, resulting in high turnover and a lower quality of workers. This can result in lower productivity and higher training costs for the client company, and it will also give your company a poor association among temporary and contract workers.

Low billing rates for staffing agencies may seem like an attractive option for client companies, but there are hidden costs to consider. These hidden costs include the level of customer service, training provided to employees, insurance coverage, and low pay rates. Client companies should carefully evaluate staffing agencies and consider all of these factors before making a decision. Ultimately, paying a higher rate for a staffing agency that provides better quality workers and services can save client companies a lot of time, money, and frustration in the long run.

Need Help Staffing?

If your team or organization needs extra hands, contact us to start the process. We are here to help you meet your staffing needs!