For transport and logistics operators across the UK, using temporary or agency drivers is a necessity for managing peak demand and covering staff holidays. However, what looks like a straightforward staffing solution often becomes a drain on the budget, ultimately leaving operators paying significantly more than is necessary.

At DrivenPeople, we believe in transparent driver recruitment; breaking down the hidden costs embedded in the traditional driver agency model and clearly demonstrating how our fixed 10% fee can offer a better, fairer solution for operators.

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The Hidden Fees That Inflate Traditional Agency Margins

When operators receive an invoice from a traditional driver agency, the final charge rarely reflects the driver's actual wage. That margin between driver pay and the bill is where hidden costs often accumulate.

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1. Inflated Agency Markups (20% to 40%+)

The biggest cost is usually the agency’s markup. While agencies cover statutory costs (like National Insurance and holiday pay accrual) their profit margin is often excessive - ranging from 20% to over 40% on top of the driver’s wage. This hefty fee covers agency overheads, sales team costs and general business expenditures.

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2. Minimum Hour Commitments

This is one of the most insidious hidden costs. Many traditional agencies enforce minimum hour agreements. If a driver works a six-hour shift but the agency requires an eight-hour minimum, operators are billed for eight hours. Operators end up paying for hours the agency driver was not even on the road, drastically increasing the cost per passenger or cost per delivery.

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3. Extra Compliance and Admin Fees

While ensuring driver compliance (valid licences, CPC, DBS) is crucial, some traditional agencies treat it as a profit center. Operators might encounter extra charges for:

• Manual background checks.
• Document verification fees.
• Admin charges for processing weekly payroll.

These small, itemized fees add up quickly, turning a simple hourly rate into a complex, bloated invoice.

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The DrivenPeople Difference: Fixed, Fair and Fully Transparent

We built DrivenPeople to eliminate these frustrations. Our model is simple: we charge a fixed, transparent 10% margin on top of the driver's agreed-upon hourly wage.

While traditional agencies frequently demand margins of 20% to 40% (which are often variable and opaque), DrivenPeople is fixed at 10%. Furthermore, operators only pay for the hours the driver actually works, removing the common traditional agency requirement for minimum hours—a significant difference that eliminates billing for unworked time. We guarantee clear, itemized pricing, ensuring operators have full visibility into costs, unlike the hidden fees prevalent in the traditional model.

By cutting out unnecessary overheads and providing full visibility into driver pay, we ensure that transport operators receive excellent value for their investment. Our SaaS platform handles the compliance and HR needs automatically—meaning these essential services are integral to the system, not an extra cost.

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Ready to Control Driver Spend?

Tired of overpaying for temporary drivers and want a recruitment partner focused on transparency and efficiency? It’s time to switch to DrivenPeople.

Start building a reliable bench of vetted, compliant drivers today.

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