If you’re running a transport or logistics operation, staffing flexibility is essential — and that’s where agency drivers come in. But how much does it actually cost to hire an agency driver, and how does that compare to employing a driver full-time?

Let’s break it down.

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Hiring a Driver Full-Time vs Using an Agency

Hiring full-time drivers gives you more direct control and consistency, but it comes with a range of responsibilities and hidden costs:

• PAYE admin and payroll processing
• Employer’s National Insurance contributions
• Holiday pay, sick pay, pensions
• HR support and employee management
• Recruitment costs and onboarding time
• Cover for sickness, holidays, or turnover

On the other hand, using agency drivers offers flexibility — you can scale your workforce up or down based on demand, avoid long-term commitments, and reduce the burden on internal HR and payroll teams.

But it’s not always cost-effective… depending on who you use.

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Traditional Agency Driver Costs

Most traditional driver agencies will charge you 20% to 40% on top of the driver’s hourly wage. This margin often includes:

• An hourly agency margin (profit + overheads)
• Employer’s National Insurance (13.8%)
• Holiday pay accrual (12.07%)
• Pension contributions
• Payroll admin and weekly processing
• Sometimes even weekly minimum hour commitments — where you're billed for a set number of hours whether the driver works them or not

It’s not always easy to understand what you’re paying for — and often, you’ll find you're locked into inflexible terms with little transparency.

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DrivenPeople: Transparent Pricing, Smarter Hiring

At DrivenPeople, we’ve made the process simpler, clearer, and fairer.

• Straightforward 10% margin
• No minimum hour requirements
• Full transparency on driver pay and charges
• Only pay for the hours the driver actually works
• Lower overall cost vs traditional agencies
• Tech-enabled platform to review driver profiles, experience, and compliance before booking

Our platform connects operators directly with vetted, experienced drivers — and because we keep overheads low and cut out the unnecessary admin, we pass those savings on to you.

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Benefits of Using Agency Drivers

Hiring through an agency (especially a transparent, tech-driven one like ours) gives you:

• Flexibility – scale up or down with demand
• No long-term commitment
• Less paperwork – we handle pay, tax, holiday accrual, and compliance
• Cover for short-term absences
• Access to a wide pool of experienced drivers
• Reduced recruitment and onboarding time

For many operators, the combination of flexibility and reduced admin makes agencies use an essential part of their workforce strategy — particularly during busy periods, staff absences, or when testing new contracts or routes.

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So, how much does it cost to hire an agency driver? If you're using a traditional agency — potentially 20% to 40% more than the driver's wage, and you may be paying for hours not even worked.

With DrivenPeople, the cost is much more manageable: just a 10% margin, no minimums, and full transparency.

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If you’re looking for a better way to find, manage, and pay professional drivers — we're ready when you are.