Agency Keep £/%'s With Contractors.
Discussion
When I was contracting I always thought it should be a case of - am I happy with what I'm getting? If so then it "shouldn't" really matter. But in reality if I ever found out the agency was adding 30% then I wouldn't have been happy. Fortunately I only contracted to big companies who had preferred supplier deals with agencies which meant they could only ever charge about 10%. One agency tried to shaft another contractor by pinching a few % off each end of the deal, needless to say the contractor asked the project manager direct what they were paying and it all came out. The agency was dropped immediately. They b
hed like mad that they were owed money because the contractor was still there (but through another agency) but the company just told them to shove it and no-one heard any more about it.
Mike
hed like mad that they were owed money because the contractor was still there (but through another agency) but the company just told them to shove it and no-one heard any more about it.Mike
We used to work aim for 20% with a minimum of 4 an hour in most cases. Under this it wasn't worth pay rolling someone. That was a midsize agency with inhouse payroll, so it might be different for companies who outsource, or much larger companies who have greater economies of scale.
The only real answer though is what you can negotiate.
The only real answer though is what you can negotiate.
The company i used to work for would not take contractors direct. On a few occassions i found a contractor i wanted then approached an agency for them to go through. In theses cases they charged 1.25 per hour if the contractor was LTD. For staff posistion we would never pay more than 10%.
Depends entirely on the industry, and volume of business offered by the client who is the one who pays any margin, not the contractor.
Thus if I employ a specific person I would offer the same rate to him but if he went to company A who spends £1m PA with me then I will make as little as 8-10% whereas if I send him to company B who I know will probably only every use me once I might make 30%.
Not a rule, and varies from industry to industry but as a contractor you should focus on whether you are being offered what you are worth, and not what the agency is making.
Thus if I employ a specific person I would offer the same rate to him but if he went to company A who spends £1m PA with me then I will make as little as 8-10% whereas if I send him to company B who I know will probably only every use me once I might make 30%.
Not a rule, and varies from industry to industry but as a contractor you should focus on whether you are being offered what you are worth, and not what the agency is making.
T5R+ said:
Appreciated - in a dilema over 11month contract " 20 miles down the road" on a day rate versus 3 year full time employment 100miles from home, different employers in differing sectors.
Unsurprisingly, lots of other factors to take into consideration, but your input has helped.
I look at it this way...Unsurprisingly, lots of other factors to take into consideration, but your input has helped.
For daily rate and taking into account everything else, how long will it take me to earn the same as permie?
if in 11 months you can earn the same as 2 years on perm, then after the 11 months you have 13 months to get a new job or be in the doo doo...
If you dont like the risk then dont do it... but contracting is liberating and it focuses your mind and motivation over a permie job.
Du1point8 said:
T5R+ said:
Appreciated - in a dilema over 11month contract " 20 miles down the road" on a day rate versus 3 year full time employment 100miles from home, different employers in differing sectors.
Unsurprisingly, lots of other factors to take into consideration, but your input has helped.
I look at it this way...Unsurprisingly, lots of other factors to take into consideration, but your input has helped.
For daily rate and taking into account everything else, how long will it take me to earn the same as permie?
if in 11 months you can earn the same as 2 years on perm, then after the 11 months you have 13 months to get a new job or be in the doo doo...
If you dont like the risk then dont do it... but contracting is liberating and it focuses your mind and motivation over a permie job.
to add to that, theres no such thing as a job for life these days, (never has been in my lifetime) so the idea of contracting, appealed. I move around alot, meet plenty of ppl (some bad some good) but most of all, it broadens your skill base, you learn something new everywhere you go, thus making you even more employable later in life should you want to take that permie job later on.
One thing i will say, certainly in my field, you do have to shift around alot, some contracts last years, some months, so its difficult to keep a relationship up or start one whilst on the move, not impossible though.
My Visa has just been approved for a job out in Texas, so i will be heading there in 7 weeks from now and i cant wait.
T5R+ said:
Trying to understand what is the "norm" for the agent/consultant to keep/earn, either as a £'s number or percentage, if working on a day rate basis (assume 6 month contract)?
Depends whether you are asking as a candidate or a recruiting manager...The guy who posted something about "30% and poking it" is out of touch. Yes, this may work at the junior end of the market but if you want a change director worth £1k/day my business will charge 30% every time.
The age old... you get what you pay for.
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