Inspired Recruitment - experiences

[Crusoe101]

im currently working on/pimped out at a 21% agency fee

[scooterscot]

Vaseline on standby...

[scooterscot]

11% margin is very good, and what your agent told you about "borrowing" the money for payrolling the contractors is correct. A good percentage of that 11% will be going straight to the bank as interest on overdraft.
!

That just freaks me out. A company that has to borrow so much to manage payroll - yes I'm sure it happens at lot - but then they just need to loose one invoice from client and they are under and I don't get paid. Too risky for me - how do you value a company that can be here today gone tomorrow?

I'll be glad when this recession takes out a number of dodgy companies - it's not the way to operate IMO.

My company does not borrow never has done never will yet I manage to pay my employees every month and could do for a god quarter before trouble came calling.

[skwdenyer]

That just freaks me out. A company that has to borrow so much to manage payroll - yes I'm sure it happens at lot - but then they just need to loose one invoice from client and they are under and I don't get paid. Too risky for me - how do you value a company that can be here today gone tomorrow?

I'll be glad when this recession takes out a number of dodgy companies - it's not the way to operate IMO.

My company does not borrow never has done never will yet I manage to pay my employees every month and could do for a god quarter before trouble came calling.

Well, first and foremost, you should take out credit insurance to protect yourself against creditors going under. An agent is just another creditor. If you don't protect yourself then there we are.

Furthermore, how can agencies expand without credit? Many use factoring (and insure their invoices) but you're quite right, a few bad clients on their side and everything goes pear shaped. But then, you don't have to use an agent - it is your choice.

But I absolutely refute the suggestion that an agent who borrows for payroll is by definition "dodgy". That is, I'm afraid, total nonsense.

[sparkymark]

I fail to see why so many contractors are complaining. I've contracted for a long time & really couldn't care less what the agency bill & what their staff earn.

I apply for a post with an idea on the rate I require, after factoring in travel, accomodation, etc. If I beat that rate then great, if I match it that's fine & if the offer falls below my target then I reject it & take an alternate contract. If an agency offers to low a rate because their skim off is to great then they lose the deal & therefore the income. Regardless, I ultimately enter a contract that pays me what I expect to earn.

When you go shopping, you don't ask the shop what their mark up is. You buy it if the price suits you & look elsewhere if it doesn't. Why is this different?

[Joner39]

"you guys really should stop thinking that agencies are taking your money - they're actually being paid by the client"

NOt entirely accurate.......

Scenario:
Client has budget of £50 an hour for an IT Contractor. Agency X has contractor available at £45 - 10% for the Agent - Perfectly fine as far as I am concerned. Agency Y find out about this role and "steal" the role from Agency X for £45 an hour, forcing same claibre of contractors to do the same work for £5 an hour less. Client saves £5 per hour. Contractor loses £5 per hour - Agent?? No different, they still get a fiver!! Most of these agents have done nothing but make one or two phone cals and they'll get £5 an hour for the next 3 months. Most of my contracts have been 12months +.

At the end of the day, its a dog eat dog world but the market becam flooded with agents back in the Y2K days offering clients a cheaper service but they were getting the money from the final cut offered to the contractor, NOT the client. If a client has £50 an hour budget, then they have £50 an hour - End of story. Agents would tout for business by claiming to get same calibre for less money.... not always true.

I've been contracting for some 11 years now and, like the rest of you, I could tell some horror stories. There are some dam good recruitment consultants/agecies out there but they make up less than 10%. They are now pimps, nothing but pimps..........

I dont care what markup they make but remember, that mark up leaves them with what they offer you.

[Fat Dave]

In my experience 22% is high but nowhere near the max. I've contracted through more than 1 agency who mark up 50% and more. As long as I'm getting a decent rate I try to be brave and live with it.

Doesn't stop me trying to get a bit more at renewal time though.

An auctioneer will charge you 25% to flog your old sideboard.

[NotAllThere]

Why are newbies resurrecting old posts?

[Jeebo72]

Total take home is about £53k minus Tax, NI, Student Loans etc etc.
TAV

Man I wouldn't get out of bed for that ... you now have my sympathy...

[Spacecadet]

Why are newbies resurrecting old posts?

Most forums berate newbies for creating new threads and not using the search facility!