Agents commissions

[d000hg]

Not sure how the real estate industry works in the UK but do estate agencies have to be transparent with their fees? If so, why should recruitment agencies be any different?

I think they do?

[TheFaQQer]

From posts here, this seems like a fairly common practice but I see it as a form stealing – either of my time or my money. . Shouldn’t agents be required to be transparent with their commission amounts so both clients and candidates know how much will be fleeced off the top?

There are two ways to look at the commission that an EB takes.

1 - They take (e.g.) 15% of your daily rate.

2 - You take (e.g.) 80% of their daily rate.

At the end of the day, I don't care what the agent gets - if you don't like the rate on offer, then don't take it.

[NickFitz]

I think we need to start naming the bad agents...maybe start a "dodgy agent" website where everyone can post their bad experiences! Or is there one already like that?

Not yet, but I've just registered the domains

In the meantime, CUK seems to work well for such stuff

[Another Dodgy Agent]

I applied for a contract advertised this morning with an advertised rate of around 450 per day. I received a phone call from the agent pretty immediately who began the conversation by saying “I must let you know that the client’s budget has changed since we placed the advert (an hour before!), and they are now only paying 255 per day”.

As far are I see it, either a) the agent knew the crappy rate and decided to misquote the rate to get people to apply or b) the rate paid by the client is in fact around 450 but the agent is trying to increase their commission amount. When I politely told the agent to stick his contract, I was asked for the minimum I would accept and that he would get back to me if he could not find someone at the 255 rate.

From posts here, this seems like a fairly common practice but I see it as a form stealing – either of my time or my money. . Shouldn’t agents be required to be transparent with their commission amounts so both clients and candidates know how much will be fleeced off the top?

As an agency we have an "open book" policy on rates. TBH so do my competitors and the rates are set by the client i.e. when signing on to renew on a PSL we have to agree the rate stipulated by the client - normally 15%.

Perhaps its an industry thing (we deal with financial services industry) because the practices you describe on here I have only witnessed in the media industry where there seems to be little control over who gets what of the total margin charged.

[expat]

Not yet, but I've just registered the domains

In the meantime, CUK seems to work well for such stuff

Website opens.
Contractors contribute their comments on agencies.
Some agencies don't like what they read about themselves.
They call their solicitor.
The solicitor writes to the webmaster.
The critical posts are removed and/or the website shut down.

[P1mpAndPr0ud]

Shouldn’t agents be required to be transparent with their commission amounts so both clients and candidates know how much will be fleeced off the top?

Okay, got my Devil's Advocate hat on now, so here we go..

Why should we be transparent? Are you transparent with your Agency about the difference between what you need to earn to survive each month and what your Ltd is charging them? This is, in effect, your "margin", and I should imagine that you are as protective over this as an EB is over theirs!

Would you, for example, say to an Agent who called you: "Thanks for the offer of £450 a day, but I don't really need it. I need £350 to get by, so that'll do". Thought not!

[Another Dodgy Agent]

Okay, got my Devil's Advocate hat on now, so here we go..

Why should we be transparent? Are you transparent with your Agency about the difference between what you need to earn to survive each month and what your Ltd is charging them? This is, in effect, your "margin", and I should imagine that you are as protective over this as an EB is over theirs!

Would you, for example, say to an Agent who called you: "Thanks for the offer of £450 a day, but I don't really need it. I need £350 to get by, so that'll do". Thought not!

Hahah, if only! Given the individual recruitment agents are paying 40% tax and the contractors are doing level best to avoid paying the correct amount of tax, you would think that they would be able to be a bit flexible on rate.

[NotAllThere]

... as an EB is over theirs! ...

Is that you Denny?

[Ravello]

<snip> Shouldn’t agents be required to be transparent with their commission amounts so both clients and candidates know how much will be fleeced off the top?

Did you ask them? It might sound obvious but some Agents do operate an open book policy and will tell you, others might be caught a bit cold and answer honestly anyway.

Either way it's not going to do any harm, and you can have a reasonable guess at those who are spouting total tulip.

[TheFaQQer]

Hahah, if only! Given the individual recruitment agents are paying 40% tax and the contractors are doing level best to avoid paying the correct amount of tax, you would think that they would be able to be a bit flexible on rate.

Awwwww - those poor recruitment agents!

Hair gel doesn't buy itself, you know....