Staffing agencies can be a vital resource for filling roles quickly, but their bill rates are influenced by how easy or difficult it is to do business with your company. By making a few strategic adjustments, you can help reduce their operational costs and unlock more competitive pricing.
Let’s discuss key ways to make that happen:
- Streamline Your Hiring Process
- Pay Invoices Promptly
- Consolidate Your Staffing Vendors
- Provide Clear Job Descriptions and Expectations
- Offer Longer Assignments When Possible
- Align Shift Times with Public Transit Schedules
- Build a Collaborative Relationship
1. Streamline Your Hiring Process
Every additional step in your hiring process adds time, and time is money. If your company insists reviewing resumes first, or interviewing every candidate presented by the staffing agency, even after they’ve been thoroughly screened, you risk losing top talent to faster-moving competitors.
Why it matters:
Candidates sourced by staffing agencies are often in high demand. Delays caused by lengthy interview processes can result in candidates accepting other offers, forcing the agency to restart the search. This impacts their workload and increases operational costs, which may be reflected in your bill rate.
What to do:
- Trust the agency’s vetting process: Work with them to set the screening conditions from the beginning, so you can have confidence in their referrals.
- Limit interviews to final-round candidates, and only in highly skilled positions.
- Set clear timelines for decision-making.
2. Pay Invoices Promptly
Late payments don’t just inconvenience your staffing partner, they can significantly impact their cash flow. Staffing agencies front payroll for temporary workers, meaning they’re paying wages before receiving payment from you.
Why it matters:
When invoices age, agencies may need to borrow funds to cover payroll, incurring interest and administrative costs. These expenses can lead to higher bill rates to offset the risk and financial burden.
What to do:
- While standard terms are 30 days, clients who pay invoices much sooner could be eligible for better rates. Aim to pay invoices within 7–15 days.
- Set up automated payment systems.
- Communicate proactively about any delays or invoice/purchase order requirements.
3. Consolidate Your Staffing Vendors
Working with multiple staffing agencies may seem like a way to cast a wider net, but it can actually increase complexity and reduce efficiency. Larger volume orders with a single agency allow them to optimize their operations and pass savings on to you.
Why it matters:
Agencies can streamline onboarding, compliance, and payroll processes when they handle more placements for a single client. This lowers their cost per hire and gives them room to offer better rates.
What to do:
- Choose one or two trusted agencies.
- Offer exclusivity or preferred vendor status. This in turn allows the agency to offer you preferred rates.
- Share long-term hiring forecasts to help them plan.
4. Provide Clear Job Descriptions and Expectations
Ambiguity leads to inefficiency. When job requirements are vague or frequently change, agencies spend more time sourcing and screening candidates who may not be a fit.
Why it matters:
Clear, consistent job specs reduce the time and cost of recruiting. Agencies can quickly identify qualified candidates and reduce turnover, which benefits both parties.
What to do:
- Collaborate with the agency to refine job descriptions.
- Be transparent about must-have vs. nice-to-have skills.
- Avoid changing requirements mid-search.
5. Align Shift Times with Public Transit Schedules
Transportation is a major factor in a candidate’s decision to accept a temporary role. Offering shift times that align with public transit routes and schedules can significantly expand your talent pool.
Why it matters:
When shifts are accessible via public transportation, more candidates (especially those without personal vehicles) can consider the role. This increases the agency’s ability to fill positions quickly and reduces the likelihood of absenteeism or turnover due to transportation issues.
What to do:
- Review local transit schedules when planning shift times.
- Avoid start/end times that fall outside of transit operating hours.
- Consider locations with strong transit access when choosing job sites.
6. Offer Longer Assignments When Possible
Short-term assignments require frequent onboarding and offboarding, which increases administrative overhead. Longer placements allow agencies to amortize their costs over time.
Why it matters:
Temporary workers placed for longer durations reduce churn and training costs, making it more cost-effective for the agency, and potentially cheaper for you. Consider keeping on key temporary staff with critical skills or experience between frequently-occurring short term projects, rather than starting from scratch for each project.
What to do:
- Consider extending assignments where feasible.
- Plan projects with longer timelines.
- Discuss retention strategies with your agency.
7. Build a Collaborative Relationship
Agencies work best when treated as strategic partners, not just transactional vendors. Open communication and mutual respect foster trust and efficiency.
Why it matters:
When agencies feel valued, they’re more likely to prioritize your openings, offer competitive rates, and go the extra mile to find top talent.
What to do:
- Schedule regular check-ins.
- Share feedback on placements.
- Invite agencies to understand your company culture.
Lowering your staffing bill rate isn’t just about negotiating harder: it’s about working smarter. By making these accommodations, you help your staffing partner reduce their operational costs, improve candidate retention, and deliver better service. In return, you gain access to top talent at more competitive rates.
Looking to optimize your staffing strategy? Let’s talk about how you can build a more efficient, cost-effective partnership with your agency. Find an ABL Division that works for you.
