agency % cut from a contract role?
Discussion
what is the industry standard?
I interviewed for an engineering role yesterday. written on the interviewers copy of my cv was an hourly rate from the agency. this was 25% more than the figure they'd quoted to me.
is this standard? I'm trying to work out if the agency is playing on my inexperience as a contractor or if they are pitching my rate too highly to clients.
i could do this particular role with my eyes closed and god knows I need the cash.
I interviewed for an engineering role yesterday. written on the interviewers copy of my cv was an hourly rate from the agency. this was 25% more than the figure they'd quoted to me.
is this standard? I'm trying to work out if the agency is playing on my inexperience as a contractor or if they are pitching my rate too highly to clients.
i could do this particular role with my eyes closed and god knows I need the cash.
Original Poster said:
25% isn't too bad when you consider the leg work that goes on,
Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
I've never had an agency do any of that (Tax, NI etc) for me. Agents (in IT at least) are lazy c**ts. At best they will read your CV before it goes across (some don't even do that), and you may get the odd phone call before and after the interview. But other than that, you will never hear from the again unless there's a problem.Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
I remember a few years ago I negotiated a pay rise of £4 per hour directly with the client when I was there on a long term contract. Due to the good work I had done up to that point, the client agreed.
The client informs the agency and then 10 minutes later the agent is on the phone telling me that the client is happy with my work and I have been granted an additional 50p per hour pay rise. He wasn't happy when I told him I had negotiated the entire payrise myself and he wouldn't be getting a f*cking bean of it.
TL;DR = Recruitment agents - not to be trusted.
OP - if you know how much the agent's cut is, call the client direct and offer to contract direct with them for a lower rate if they cut out the agency. Add on 10% to your rate and you will still be 15% cheaper. Don't tell the agency obviously.
Edited by itsnotarace on Wednesday 16th June 14:28
itsnotarace said:
OP - if you know how much the agent's cut is, call the client direct and offer to contract direct with them for a lower rate if they cut out the agency. Add on 10% to your rate and you will still be 15% cheaper. Don't tell the agency obviously.
]
Or alternatively, don't be a pikey.]
OP are you self employed or PAYE?
Original Poster said:
25% isn't too bad when you consider the leg work that goes on,
Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Since when has a contractor had the agency pay the tax and NI?Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Surely that is a Temp job and not a contractor unless the agency has an umbrella arm and then the contractor pays for the privilege.
My agent gets 10% of my daily amount off the client and I bill for my daily rate and VAT, the agent then pays me that and gets it back off the client.
I sort out my own tax and NI... not sure which planet you live on but it aint real world
Original Poster said:
25% isn't too bad when you consider the leg work that goes on,
Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Lies, damn lies and agents talking.Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Strange how an umbrella company can do all that and more for ~£30 a week. (even if that was actually a true statement)
zippy3x said:
Original Poster said:
25% isn't too bad when you consider the leg work that goes on,
Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Lies, damn lies and agents talking.Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Strange how an umbrella company can do all that and more for ~£30 a week. (even if that was actually a true statement)
So much better than shady umbrella companies or the agencies that recommend you use theirs as 'its the best' when in fact they are skimming off you wage and then again for a use of a pleb in their company that probably isn t even a qualified accountant/tax person.
Rip off you say.... you bet the f
k they are!!I'm not even going to bother replying to some of the other nonsense in this thread 
Surely that is a Temp job and not a contractor unless the agency has an umbrella arm and then the contractor pays for the privilege.
My agent gets 10% of my daily amount off the client and I bill for my daily rate and VAT, the agent then pays me that and gets it back off the client.
I sort out my own tax and NI... not sure which planet you live on but it aint real worldThe tax and NI bit applied to temps only, apologies for the confusion.
Dupont666 said:
Original Poster said:
25% isn't too bad when you consider the leg work that goes on,
Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Since when has a contractor had the agency pay the tax and NI?Paying you, dealing with tax and NI, dealing with time sheets etc can take a whole day...
Surely that is a Temp job and not a contractor unless the agency has an umbrella arm and then the contractor pays for the privilege.
My agent gets 10% of my daily amount off the client and I bill for my daily rate and VAT, the agent then pays me that and gets it back off the client.
I sort out my own tax and NI... not sure which planet you live on but it aint real world
itsnotarace said:
blindswelledrat said:
Or alternatively, don't be a pikey.
Maybe if recruitment agencies took a fairer percentage for doing sweet FA.... You have an alternative- get off your arse and find your own job.
THe agency offer you a job at a given rate- it is either acceptable or it isn't. THat simple. WHat they make from it is nothing whatsoever to do with you becuase it is the client who pays thier bill not you.
shirt said:
thanks for the replies, guess its quite profitable being an agency!
the 25% is just for making the introduction, not processing anything such as tax on my behalf. still haven't decided whether to use an umbrella co. or set up my own ltd. guess I'll decide once an offer is tabled.
SO it's a one off permanent fee?the 25% is just for making the introduction, not processing anything such as tax on my behalf. still haven't decided whether to use an umbrella co. or set up my own ltd. guess I'll decide once an offer is tabled.
25% seems a touch high to me, 20 is more normal I would have thought.
For anyone who thinks that is too much, make a call to any newpaper/job website and ask how much it costs to advertise. You'll suddenly feel an awful lot better about those fees!
blindswelledrat said:
itsnotarace said:
blindswelledrat said:
Or alternatively, don't be a pikey.
Maybe if recruitment agencies took a fairer percentage for doing sweet FA.... You have an alternative- get off your arse and find your own job.
THe agency offer you a job at a given rate- it is either acceptable or it isn't. THat simple. WHat they make from it is nothing whatsoever to do with you becuase it is the client who pays thier bill not you.
the comission pays for the time that the agents spend in building up a relationship with clients, maintaining offices and administration staff, running payrolls etc. I would much rather have the whole rate myself but at the end of they day, i dont have the time and ability to do the networking when looking for a job, and when hiring i don't have the time to field the 1000 + CV's that regularly come in if you run an advert.
an agent / recruiter / head hunter takes away a lot of the pain of employment for the employee / employer.
Still call them slave traders mind you,
blindswelledrat said:
itsnotarace said:
blindswelledrat said:
Or alternatively, don't be a pikey.
Maybe if recruitment agencies took a fairer percentage for doing sweet FA.... You have an alternative- get off your arse and find your own job.
THe agency offer you a job at a given rate- it is either acceptable or it isn't. THat simple. WHat they make from it is nothing whatsoever to do with you becuase it is the client who pays thier bill not you.
Some people just have a bee in their bonnet about people earning money 'off them'.
As BSR says, if you dont like it, get off your own arse and find a job.
XJSJohn said:
blindswelledrat said:
itsnotarace said:
blindswelledrat said:
Or alternatively, don't be a pikey.
Maybe if recruitment agencies took a fairer percentage for doing sweet FA.... You have an alternative- get off your arse and find your own job.
THe agency offer you a job at a given rate- it is either acceptable or it isn't. THat simple. WHat they make from it is nothing whatsoever to do with you becuase it is the client who pays thier bill not you.
the comission pays for the time that the agents spend in building up a relationship with clients, maintaining offices and administration staff, running payrolls etc. I would much rather have the whole rate myself but at the end of they day, i dont have the time and ability to do the networking when looking for a job, and when hiring i don't have the time to field the 1000 + CV's that regularly come in if you run an advert.
an agent / recruiter / head hunter takes away a lot of the pain of employment for the employee / employer.
Still call them slave traders mind you,
k all to do as he got the job based on my recommendations and they still creamed 10% of his wages a day.All I got was a poxy £500 referal fee which I split with said friend
no1special said:
blindswelledrat said:
itsnotarace said:
blindswelledrat said:
Or alternatively, don't be a pikey.
Maybe if recruitment agencies took a fairer percentage for doing sweet FA.... You have an alternative- get off your arse and find your own job.
THe agency offer you a job at a given rate- it is either acceptable or it isn't. THat simple. WHat they make from it is nothing whatsoever to do with you becuase it is the client who pays thier bill not you.
Some people just have a bee in their bonnet about people earning money 'off them'.
As BSR says, if you dont like it, get off your own arse and find a job.
I may need a tyre changed, and may not want to / possess the skills to change the tyre. The does not give the tyre fitter the right to charge me £100 to do it.
If you agents are so "worth it" then why do you hide your margins from both client and contractor?
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