Agencies - is there a better way?

[JackOfAllIT]

So, I took a look at my project budget and the money on there is way more than my actual daily rate. Fair play to the agency, they are making easy money.

So cut out the middle right?

One way would be to move about a lot, meeting lots of people and gaining trust then directly approaching them after the 1 year no direct hire expires.

What are the other ways to not use agencies? Become one?

thx

[BlasterBates]

It's basically a non-starter. Most clients don't want to take on contractors directly. They'd rather deal with two or three agencies, why ? because of the hassles. If they have 500 Ltd companies to deal with they'll probably end up in a continuous legal dispute with one or two of them. Clients like to be able to dump contractors, or drop their rate, they also don't want contractors claiming they have employment rights. In other words for a client it's lot less hassle dealing with an agency.

However it is possible to go direct, it's just it will always be an exception.

[SimonMac]

Companies use agency for ease of life and best value for them, its not about you sorry!

[sal]

So, I took a look at my project budget and the money on there is way more than my actual daily rate.

Come renewal, negotiate rate increase factoring 5-10% for the agency, most of them are happy with margin in that range and will not risk losing the revenue you generate.

Working direct is exceptional and will remain such for the foreseeable future, so better get used to working with Agencies and negotiate better rate next time.

[Antman]

Have you tried ContractorClub?

Contractor Club

[tractor]

So, I took a look at my project budget and the money on there is way more than my actual daily rate. Fair play to the agency, they are making easy money.

So cut out the middle right?

One way would be to move about a lot, meeting lots of people and gaining trust then directly approaching them after the 1 year no direct hire expires.

What are the other ways to not use agencies? Become one?

thx

You have a one year handcuff? You need to learn to negotiate better. Or learn to not Opt Out.

[tarbera]

So, I took a look at my project budget and the money on there is way more than my actual daily rate. Fair play to the agency, they are making easy money.

So cut out the middle right?

One way would be to move about a lot, meeting lots of people and gaining trust then directly approaching them after the 1 year no direct hire expires.

What are the other ways to not use agencies? Become one?

thx

Your project "budget" might have nothing to do with your 'actual' agency margin

Example your might have seen £1k a day in the budget

Your costs might be £800 to agency and the other £200 allocated to internal departments (desk, lighting, laptop, rent, your managers costs, the most I've seen is a contractor costs allocated to 43 separate cost centres !!! )

If you have seen the agents real costs for you that's a different matter !!!

[TheFaQQer]

What are the other ways to not use agencies?

Connect via LinkedIn to people who are in positions at companies that don't use agents, and make it known that you are looking for work when you are coming available.

That's how I got this role, two and a bit years ago.

[Eirikur]

It's basically a non-starter. Most clients don't want to take on contractors directly. They'd rather deal with two or three agencies, why ? because of the hassles. If they have 500 Ltd companies to deal with they'll probably end up in a continuous legal dispute with one or two of them. Clients like to be able to dump contractors, or drop their rate, they also don't want contractors claiming they have employment rights. In other words for a client it's lot less hassle dealing with an agency.

However it is possible to go direct, it's just it will always be an exception.

Correct and incorrect
I negotiated a contract directly with one of the world's major IT companies, once everything was agreed they handed me over to an agency for all the admin work and the contract itself.

However I also had an experience teh other way round. Agency introduced me to a (medium sized) company and did all the negotiations, but then handed me over to the end client with whom I would sign the contract (which I didn't in the end as it kept failing IR35 miserably and they were not willing to change it any further)

[Ramrod]

Have you tried ContractorClub?

Contractor Club

The first rule of Contractor Club is that you do not talk about Contractor Club.