Staffing agency SLA template: fill rate, time to submit, no-show replacement and service credits
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A staffing service level agreement (SLA) is a schedule to the client agreement that turns an agency's promises into measured commitments: a fill rate, a time to submit, a time to replace no-shows and an assignment completion rate, each with a definition, a measurement rule, exclusions for what the client controls, and a remedy, usually a capped service credit with a chance to earn it back. Any agency can offer a guaranteed fill rate for warehouse or other high-volume work if the guarantee is defined this precisely; without definitions it is a sales line. The template below is ready to copy, with every number in brackets for you to set.
Public-sector contracts show what precise definitions look like. Tennessee's 2026 draft MSP contract, for example, defines fill rate as "total number of filled positions at month end / total number of corresponding requisitions" and sets response times in business hours and business days (Tennessee pro forma contract, checked October 2026). This template applies the same discipline to a direct client. It is a business template, not legal advice; have counsel review it with your master agreement.
What should a staffing SLA cover?
| Service level | What it measures | The rule to agree in writing |
|---|---|---|
| Fill rate | Workers started against workers ordered | Orders, headcount or shifts; counted on the start date or the first week; which orders qualify |
| Time to submit | Speed to first qualified candidate (skilled roles) | When the clock starts, business or calendar hours, what "qualified" means |
| No-show replacement | Speed to replace a worker who does not arrive | How the client notifies you and when the clock starts |
| Assignment completion | Workers who finish the planned assignment | Which ends count against you; client-initiated ends excluded |
| Onboarding compliance | Required checks complete before day one | The list of checks and who supplies which documents |
| Invoice accuracy | Invoices issued without correction | What counts as an error, and the timesheet source of truth |
Fill rate is where most disputes start, because order, headcount and shift fill rates answer different questions. Settle which one before you set a target; fill rate for staffing agencies works through all three.
The staffing agency SLA template
SCHEDULE [X]: SERVICE LEVEL AGREEMENT
between [Agency legal name] ("Agency") and [Client legal name] ("Client")
under the [Master Services Agreement] dated [date] (the "Agreement")
1. SCOPE
1.1 This Schedule applies to temporary staffing orders placed by the
Client for [sites / job categories] from [start date].
1.2 Terms not defined here have the meaning given in the Agreement.
If this Schedule conflicts with the Agreement on service levels,
this Schedule governs.
2. DEFINITIONS
2.1 "Qualifying Order": an order placed in writing [through the
ordering portal / by email to the designated address] at least
[2] business days before the requested start date, at a pay rate
at or above the rate in Annex A, within [110]% of the weekly
forecast in clause 5.2.
2.2 "Filled": the worker reports for the first scheduled shift on the
requested start date [or within [1] business day of it, if the
Client agrees].
2.3 "Business hours": [8:00 a.m. to 6:00 p.m.], [Monday to Friday],
[time zone], excluding public holidays listed in Annex B.
2.4 "No-Show": a worker who does not report within [60] minutes of
the shift start, notified by the Client under clause 4.3.
3. SERVICE LEVELS
Service level Target Measured
3.1 Headcount fill rate [95]% Monthly, Qualifying Orders
3.2 Time to submit [90]% within Monthly, skilled orders
(skilled roles) [24] business
hours
3.3 No-show replacement [85]% within Monthly
[4] hours
3.4 Assignment completion [80]% reach Monthly, assignments due to
planned end end that month
3.5 Onboarding compliance [100]% of Monthly
Annex C checks
before day one
4. MEASUREMENT AND REPORTING
4.1 The Agency reports each service level by the [5th] business day
of each month, with the order-level data behind it.
4.2 Source of truth: the Agency's order records for orders and
starts; the Client's time and attendance system for attendance.
4.3 The Client notifies No-Shows by [phone and email to the on-site
coordinator]; the replacement clock starts at notification.
4.4 Either party may dispute a figure within [10] business days of
the report. Undisputed figures are final.
5. EXCLUSIONS AND CLIENT DEPENDENCIES
An order or event is excluded from the service levels if:
5.1 it is not a Qualifying Order;
5.2 weekly volume exceeds the Client's forecast, given by [Thursday]
for the following week, by more than [10]%;
5.3 the Client changes the job requirements, shift or site after the
order is placed;
5.4 the Client does not complete interviews, approvals or site
access within [1] business day of the Agency's request;
5.5 the assignment ends at the Client's request, for reasons other
than the worker's performance or conduct;
5.6 an event outside either party's reasonable control prevents
performance (as defined in the Agreement).
6. SERVICE CREDITS
6.1 If a service level in clause 3 is missed in a month, the Agency
credits [2]% of that month's fees for the affected [site] per
missed service level.
6.2 Total credits in any month are capped at [5]% of that month's
fees for the site.
6.3 Credits appear on the next invoice. They are the Client's sole
financial remedy for missing a service level, without limiting
the termination right in clause 8.
7. EARN-BACK
7.1 If the Agency meets or exceeds the missed service level in each of
the [2] months after a credit, [50]% of that credit is returned on
the following invoice.
8. CHRONIC FAILURE
8.1 If the same service level is missed in [3] consecutive months, or
in [4] of any [6] months, the Client may end this Schedule and the
affected orders on [30] days' written notice without any
termination fee.
9. REVIEW
9.1 The parties review targets, exclusions and forecasts each quarter.
Changes take effect only when signed by both parties.
Annex A: Minimum pay rates by job category
Annex B: Public holidays
Annex C: Onboarding checks (background check, drug screen, safety
training, I-9) and who provides what
Signed for the Agency: ______________ Date: ________
Signed for the Client: ______________ Date: ________How do service credits and earn-back work?
A credit should hurt enough to matter and not so much that one bad month wipes out the account's margin. Set the cap against your gross margin, not your revenue: if the account earns a gross margin of about 20% of fees, a 5% cap can take a quarter of a month's gross profit. Earn-back keeps the incentive pointed at recovery.
Example (all figures invented): a site bills $120,000 in March. Headcount fill rate is 91% against a 95% target; no-show replacement is 88% against 85%. One service level is missed, so the credit is 2% x $120,000 = $2,400, under the 5% cap of $6,000, and appears on the April invoice.
In April and May the fill rate is 96% and 97%. Under the 50% earn-back, $1,200 is returned on the June invoice. Net cost of the March miss: $1,200.
A filled example for a warehouse client
Example (an invented client; every value is an example, not a recommendation):
Scope: pickers, packers and forklift operators at one distribution center, three shifts.
Qualifying Order: placed 2 business days ahead, at or above the Annex A pay rate, within 110% of the forecast given each Thursday.
Targets: headcount fill rate 95% on the start date; no-show replacement 85% within 3 hours on first and second shift, 5 hours on third shift; assignment completion 80% to the planned end date; onboarding compliance 100% (background check, drug screen, site safety video, forklift evaluation before day one).
Time to submit: not used, because the client does not interview general labor.
Credits: 2% per missed level, 5% monthly cap, 50% earn-back over two months; chronic failure after 3 consecutive misses.
What should you change before you sign?
| Clause | Change it when |
|---|---|
| 2.1 notice period | The client orders same-day; then set a lower target for short-notice orders instead of excluding them |
| 2.1 pay rate floor | Always. A fill rate guarantee at a below-market pay rate is the most common way agencies lose credits |
| 3.2 time to submit | The roles are skilled and the client interviews; drop it for general labor |
| 3.4 completion | Assignments are open-ended; measure retention at 30 days instead |
| 5.2 forecast | Peak season; agree a separate peak forecast and target |
| 6.1 credit size | Account margin is thin; lower the percentage or the cap |
| 8.1 chronic failure | The client wants an exit; keep it tied to repeated misses, not one month |
If the SLA is part of a bid, put the definitions in your response so evaluators can compare like with like; see how to respond to a staffing RFP. Price the credits in, too: how to calculate staffing markup shows where the margin comes from.
Common mistakes
- A target with no definition. "95% fill rate" without saying which fill rate, which orders and when it is counted.
- No client dependencies. The agency carries the risk of late interviews, changed requirements and surprise volume.
- Credits on total spend. A credit on the whole account for a miss at one site punishes the sites that performed.
- No dispute window. Figures argued months later, when no one remembers the orders.
- Reporting the number without the data. Send the order-level detail with the monthly report; it is also what you bring to the quarterly business review.
An internal version for recruiters and hiring managers inside one company is a different document; see recruiting SLA with hiring managers. If the client runs an MSP program, its scorecard replaces much of this schedule; MSP supplier scorecards and tier reviews explains how those are measured.
Questions people ask
What is an SLA in staffing?
A service level agreement in staffing is a schedule to the client agreement that turns the agency's promises into measured commitments: a fill rate, a time to submit candidates, a time to replace no-shows, an assignment completion rate and similar targets, each with a measurement rule, exclusions for things the client controls, and a remedy such as a service credit if the target is missed.
Can a staffing agency guarantee a fill rate?
Yes, if the fill rate is defined precisely and tied to conditions the agency can plan for: orders placed with a minimum notice period, pay rates at or above an agreed floor, and volume within a forecast. Without those conditions a guarantee is either meaningless or dangerous. The remedy is usually a capped service credit, not a refund of all fees.
What are service credits and earn-back in a staffing SLA?
A service credit is a reduction in the next invoice when a service level is missed, normally a small percentage of that month's fees for the affected site, with a monthly cap. Earn-back lets the agency recover part or all of a credit by beating the target in the following months, which rewards fixing the problem instead of only punishing the miss.
How often should staffing SLA performance be reviewed?
Measure monthly, so credits can be applied to the next invoice, and review the targets and exclusions quarterly with the client. A quarterly business review is the natural place to reset targets when volumes, pay rates or shift patterns change.