What Is Your Talent Solutions Provider Costing You?

Hiring through an Employer of Record (EOR) or Agent of Record (AOR) is a smart move for many businesses. But even when things look solid on paper, unexpected costs and service gaps may quickly drain your budget. They can also make life harder for both your team and the talent you depend on.

Whether you’re using a talent solutions provider to simplify hiring or to expand globally, it’s important to know what you’re really paying for. Unfortunately, many organizations discover too late that their provider is creating more problems than it’s solving, from delayed payments to frustrated talent.

So, let’s examine five ways EOR or AOR services from your talent solutions provider might be costing you more than you expected—and how to stay ahead of those issues.

5 Hidden Talent Solutions Costs Adding to Your Bottom Line

1. Payroll Errors

Errors in pay, taxes, or benefits happen more often than you might think, especially when your talent solutions provider relies on outdated systems or manual processes. Worse, many providers outsource payroll to third-party companies, which often leads to slower fixes when issues arise.

If your team is spending hours double-checking pay stubs or handling worker complaints, you’re not saving time—you’re paying twice for payroll and taking valuable time away from other priorities. Repeated mistakes can lead to a number of compliance risks along with costly legal penalties.

2. Late Payments

Timely pay is important to your team. When payments are delayed or incorrect, it causes stress, lowers morale, and undermines confidence in your organization.

That kind of uncertainty can affect motivation and focus, making it harder for workers to stay productive and slowing project progress. Payment issues also impact your company’s reputation. Over time, they make it more difficult to retain and attract valuable talent.

3. Inflated Setup and Administrative Fees

Some talent solutions providers attract clients with low base rates, only to tack on extra fees per hire or country. These costs add up fast, especially if you’re growing quickly or entering new markets where setup fees can be particularly high. Watch out for charges tied to contract processing, administrative tasks, or local registrations.

While some fees are expected, others may be unclear or inflated. If your invoice regularly contains surprises, your partner likely isn’t being fully transparent about what their service covers. What starts out looking affordable can quickly become a financial burden as those hidden fees accumulate.

4. Restrictive Termination Fees

One of the biggest benefits of using a talent solutions provider is flexibility—bringing in talent when you need it and wrapping up contracts when the work is done. But not all providers deliver on that promise. In fact, some providers charge early termination penalties, require long notice periods, or add administrative costs just to close a contract. These terms can cause delays and lead to extra charges you didn’t budget for.

When flexibility was a key reason for choosing a workforce solutions provider in the first place, these practices directly undermine your workforce strategy. That’s why it’s important to take a close look at their termination policies carefully before signing. What seems like a small detail now could become a big expense later.

5. Other Hidden Fees

Some providers start with seemingly clear pricing, but hidden fees later emerge for services that should be included as part of your overall package. Even after accounting for standard fees, many add small, recurring charges like:

• Marked-up currency conversion rates
• Upsells for compliance support
• Document amendment fees
• “Convenience” charges for basic services

These costs often go unnoticed until they add up. To protect yourself, regularly review invoices against your original agreement to catch these incremental expenses early—before they begin to drag down your bottom line.

Explore: AOR vs. EOR: Choosing the Right Model for Your Needs

How to Find the Right Talent Solutions Partner

Your provider should make workforce management easier, not harder. If you’re dealing with unexpected costs, poor support, or dissatisfied workers, it’s time to take action.

Next steps:

• Audit invoices monthly for recurring or unclear charges
• Evaluate service performance against agreed SLAs
• Demand full pricing transparency—no exceptions
• Monitor worker satisfaction with regular check-ins

If your current provider consistently creates more challenges than value, it may be time to move on. A provider offering EOR and AOR services should be a strategic partner, helping you build a strong, reliable workforce that drives your business forward.

Learn More:

• Evaluating EOR Companies: Questions to Ask
• Evaluating AOR Companies: Questions to Ask

Additional Info on EOR, AOR, and Other Contingent Workforce Solutions

Want to learn more about how Employer of Record and Agent of Record services can help you build your workforce? Check out our EOR services page or AOR services page with everything you need to know to make the best choice for your organization.