Agency Margins

[NotAllThere]

anyone with hays ?
they are skimming off 18% from my day rate

Wow. I wish most agencies were as low as that. I did have one try to argue that a higher rate justified a higher % margin. Nice try. Anyway, with me Hays currently take 6% of what they charge their client. If your rate is high enough, the margin in absolute terms can be quite big too.

(OK, I approached them, already having the contract).

[northernladuk]

anyone with hays ?
they are skimming off 18% from my day rate

No they aren't. You are getting a cut of their day rate.

[BlasterBates]

anyone with hays ?
they are skimming off 18% from my day rate

Are they skimming you or the client ?

If you had negotiated directly with the client they would have given you the rate you asked for and you would be happy. The fact that an agency paid the rate you asked for and is charging the client more means they are skimming the client, because if you'd have gone direct the client would be paying less and you wouldn't earn anymore.

It's up to the contractor to pitch his rate, the agency will try and get the highest margin possible.

[Andy2]

Are they skimming you or the client ?

If you had negotiated directly with the client they would have given you the rate you asked for and you would be happy. The fact that an agency paid the rate you asked for and is charging the client more means they are skimming the client, because if you'd have gone direct the client would be paying less and you wouldn't earn anymore.

It's up to the contractor to pitch his rate, the agency will try and get the highest margin possible.

in which world ? Most large companies in the UK have PSL agencies and will not allow you to go direct.

[tickledpinkies]

My agency gets 30%

The current contract is coming to an end, but another department wants to offer me another one after in the new year. I don't know if I can switch agencies at that point. I think they have some type of anti poaching clause, but I've had enough of them.