What's a typical agent cut for a permie role?

**nomadd** · 12 July 2009, 09:25

Originally posted by EddieNambulous View Post

An image of rats and sinking ships comes to mind as I type this...I am looking at going permie at a former contracting gig, but am going direct rather than the other candidates who are coming through an agency.

Does anyone have an idea what a typical permie agent takes as a cut these days?

Would be a handy figure to dangle around in the "why should we employ you?" phase of questioning since I have my suspicions that some of the competition may be ex-contractors too...so the "I've already worked there/you know me" stuff might not be enough.

The figures I've seen in contracts for permie roles (that I've seen when I've interviewed permies for clients) is based on a percentage of their first year salary. It used to be around 10% or so, so £4k for someone on £40k.

Of course, in the current market this may have been reduced to under 5%, or may just be a fixed fee of a couple of grand. Very difficult to tell, as I'm sure agencies are cutting each other up for income now just as contractors are having to do.

As a rough guess, I'd say you going direct might save them £2-3k on a £40-50k role.

Hopefully someone on here may have some better up-to-date info. I'd be interested in hearing it myself.

Nomadd

**EddieNambulous** · 12 July 2009, 10:01

Found this on StackOverflow. Someone saying agents take 25%-33% of starting salary...that hiring manager appears to be UK-based.

http://tinyurl.com/nrlgxq

**VectraMan** · 12 July 2009, 10:47

Back when I used to do the hiring (5 or 6 years ago), the agents would typically charge 20-30% of the first year salary on a sliding scale (i.e. the greater the salary the greater the percentage).

**HeadOfTesting** · 12 July 2009, 11:03

I was doing a lot of permie recruitment up until a few years ago and was approaching agents myself as I'd negotiated an opt-out on the sole-supplier agreement (but that's another story).

Bearing in mind that the economic backdrop was much better then, some agents were willing to go as low as 15% to win new business (but never lower) but the scale went up to about 35%. In my experience it does tend to be tiered based on the total package value (including estimated bonus etc). The higher the package value the higher the percentage.

I think it's good to prepare the argument, but for a permie position, don't underestimate the importance of team fit and manageability over budget, especially because the comission is a one-time expense and the hiring manager may not actually be the budget holder anyway.

Good luck with it.

**EddieNambulous** · 12 July 2009, 11:06

On a £40K salary, you would be saving the client £8K-£12K just by going direct!

In a tight marketplace where there's not much to separate the potential candidates, that's what I call an advantage.

**EddieNambulous** · 12 July 2009, 11:09

Originally posted by HeadOfTesting View Post

I think it's good to prepare the argument, but for a permie position, don't underestimate the importance of team fit and manageability over budget, especially because the comission is a one-time expense and the hiring manager may not actually be the budget holder anyway.

Good luck with it.

Thanks. I've heard on the grapevine that I'm probably the preferred candidate anyway based on past performance but never does any harm to have a bit of extra ammunition.

Will see how it goes.

**JoJoGabor** · 12 July 2009, 22:04

I know for a fact that my agency takes £10k on a 50k role one off payment

**Another Dodgy Agent** · 12 July 2009, 22:07

Originally posted by EddieNambulous View Post

Thanks. I've heard on the grapevine that I'm probably the preferred candidate anyway based on past performance but never does any harm to have a bit of extra ammunition.

Will see how it goes.

Based on your previous comments on here I would say you would not be the "preferred candidate", still your original question was not "how do I become an instant sycophant?"

So in answer to your other question, 15% of first year salary.

**Another Dodgy Agent** · 12 July 2009, 22:09

Originally posted by EddieNambulous View Post

Thanks. I've heard on the grapevine that I'm probably the preferred candidate anyway based on past performance but never does any harm to have a bit of extra ammunition.

Will see how it goes.

Based on your previous comments on here I would say you would not be the "preferred candidate", still your original question was not "how do I become an instant sycophant?"

I am not sure you should be allowed near ammunition, you appear to be rather unbalanced.

However in answer to your other question, 15% of first year salary.

What's a typical agent cut for a permie role?