How much do recruitment agents take?

**al_cam** · 6 August 2007, 10:07

The rule of thumb is "as much as possible"

Some clients have agreed fixed percentages (my agent adds 15%)
This avoids the agent getting the cheapest people and increasing the agency percentage accordingly.

25%, while it is a lot, is within the normal range, I would say a little more than average but I have seen worse.

Use this knowledge to negotiate a better rate on renewal/your next contract.

Al.

**malvolio** · 6 August 2007, 10:10

Originally posted by Apache

Is there a rule of thumb for the margin a recruitment agent makes on your contract? I am in my first contract (IT Project Management) and have worked out that the agent that placed me is taking 25% of the daily rate the company is paying for my services. Is that pretty average or outragous? What sort of margin is usual or does it vary widely?

The usual newbie mistake - they aren't taking 25% of your rate, you are getting 80% of theirs...

And yes it is still a bit high, but who cares - it's what you get that matters, and since you have agreed to it, presumably you were happy with it.

**Ardesco** · 6 August 2007, 10:54

I would expect them to be taking 12-20% of the amount the end client pays, however 25% is not uncommon.

The thing to remember is that it doesn't really matter what they take. You accepted a contract for a rate that was obviouslt agreeable so don't worry about thier cut. The only useful thing to come out of this is that you know there is potential to increase your income at renewal time if you are willing to play hard ball and risk loosing your gig.

**backagain** · 7 August 2007, 22:36

I asked my agent today; she said 20%. That seems much higher than it used to be (some years back it was about 15%). Guess the rates are lower so they squeeze us to keep up their profits?

Since I need to renew; I think I might try and squeeze them a bit to get my rate up, and they can cut their margin, on what is a an easy sale.

**n5gooner** · 8 August 2007, 08:54

not sure about my current gig, although I know I'll be working direct with the client at the end of it. But my last gig the agent (Modis) took 16.5% - and would not budge from it.

**TheFaQQer** · 8 August 2007, 11:12

Current gig won't say - all they say is that the client knows what their margin is. I'll find out at renewal time, I'm sure.

I was told my one agent last year that under 12% isn't worth their while, with factoring costs etc. They were taking somewhere around 16% at the time, and budged slightly on rate to keep me there - if I'd held out for the rate I really wanted, then there wouldn't have been the extension.

**Wilton Blakkatt** · 23 February 2008, 14:39

27% from xxx... Recruitment

Hi all,

I just want to add in a bit - I have just been asked to attend an interview for a role and been told the day rate. I then seen the amount they are charging and have calculated that this is 27% of the fee.

Is it me or does anyone else think this is scandalous - I dont mind them making a fee, but 27% i think is excessive. I know of people who's recruitment agents are making 2k and 3k a month off thier contracts for basically sending a CV. (Or rather getting in the way of me sending a CV).
They block your application if they cant be bothered and have no right to do this.
Another example; I was told on numerous occassion XXXX Recruitment firm said that they are putting me forward for a role at XXX company. I eventually rang the company direct and they brought me in for an interview - I would have had the job only I took something else slightly better. The point I am making here is agencies are only out for thier own benefit, if you charge higher than the next person they will put them forward. They dont care if the company they are providing suffer a bad worker or not - this can obviously work in your favour for roles that you want to go for but arent experienced enough for - so ups and downs.

The only thing that fires me up is Fleecing you for information.
Contractors beware - if an agency calls you for a job and doesnt tell you what is for they are just ringing for a lead.
common questions come up these include
Whats your situation now?
Where are you working? - if not stated on your CV
Whose your boss? - Dont put your references on your CV!
They may ask does Paul still work there? Like they know them and you will give names away.
When is it your contract due to end?
etc

Tips!
Always state your highest amout you want and say we can negotiate - depending on role and area etc

Anyway good luck to all the contractors...

**Ardesco** · 25 February 2008, 11:45

Originally posted by Wilton Blakkatt View Post

Hi all,

I just want to add in a bit - I have just been asked to attend an interview for a role and been told the day rate. I then seen the amount they are charging and have calculated that this is 27% of the fee.

Is it me or does anyone else think this is scandalous - I dont mind them making a fee, but 27% i think is excessive. I know of people who's recruitment agents are making 2k and 3k a month off thier contracts for basically sending a CV. (Or rather getting in the way of me sending a CV).
They block your application if they cant be bothered and have no right to do this.
Another example; I was told on numerous occassion XXXX Recruitment firm said that they are putting me forward for a role at XXX company. I eventually rang the company direct and they brought me in for an interview - I would have had the job only I took something else slightly better. The point I am making here is agencies are only out for thier own benefit, if you charge higher than the next person they will put them forward. They dont care if the company they are providing suffer a bad worker or not - this can obviously work in your favour for roles that you want to go for but arent experienced enough for - so ups and downs.

The only thing that fires me up is Fleecing you for information.
Contractors beware - if an agency calls you for a job and doesnt tell you what is for they are just ringing for a lead.
common questions come up these include
Whats your situation now?
Where are you working? - if not stated on your CV
Whose your boss? - Dont put your references on your CV!
They may ask does Paul still work there? Like they know them and you will give names away.
When is it your contract due to end?
etc

Tips!
Always state your highest amout you want and say we can negotiate - depending on role and area etc

Anyway good luck to all the contractors...

They don't usually just send a CV tough, they also usually have a factoring service to ensure you get paid in a reasonable amount of time and if you are IR35 caught they have a bunch of other obligations they have to take care of. Finally the amounts they take do seem high but then they also have to pay all their staff from the money they milk out of you.

They may be charging 27% because they have been running at a loss and need to claw some money back, at the end of the day agencies are businesses too and will take full advantage to make as much money as possible. If you want the end client to know exactly what the agency is giving you make sure you deal only with agencies on a PSL.

**hugebrain** · 25 February 2008, 11:52

Originally posted by Apache View Post

Is there a rule of thumb for the margin a recruitment agent makes on your contract? I am in my first contract (IT Project Management) and have worked out that the agent that placed me is taking 25% of the daily rate the company is paying for my services. Is that pretty average or outragous? What sort of margin is usual or does it vary widely?

Yes, it's outrageous and they're ripping you off. Renegotiate or ditch them at the earliest opportunity.

How much do recruitment agents take?