Recruitment Agency Fees

[RichardCranium]

Fees can range from 8% (normal) to 40%...

That has not been my experience. I have personally never known a margin under 10.5%. I have heard of less, but never come across it. Margins that low are also only to be found on sites with a PSL and an honest agent. ()

Margins for first-timers can approach 100%, that is, a markup well over 100%. This is especially true for low-paid staff, such as call-loggers. They can be getting minimum wage yet the client charged £20+ per hour. I know, I've seen it done.

There are two camps regarding knowing the margin:
a) if you know what it is, you won't sleep nights;
b) if you don't know what it is, how can you know what the client thinks of you?

[pmeswani]

You are giving out two impressions:
1) You have not done the most basic research before making this huge decision about how you are going to generate your personal income;
2) You are just winding us up, i.e. trolling.

That is why you are getting ribbed.

Really? I won't mind doing some ribbing. How does ribbing work? I can't be asked to do some research.

[RichardCranium]

Oh, yeah, I nearly forgot. Regarding this question:

Also if people have an indication of how much they get I would be very interested in this

... I don't think so.

[RichardCranium]

Really? I won't mind doing some ribbing. How does ribbing work? I can't be asked to do some research.

Causing hardly any surprise, there is one web site that can tell you all you need to know:

Kinky linky
and
Blinky linky

SFW? You decide! Most clients would be most if they knew.

[The Agents View]

There is simply NO benefit to hiding this.

There may be variations on this, and there are now odd people out there charging flat placement fees to introduce contractors - but they're largely people who have been sacked and are desperate for cash.

Anyway.

We agree a daily rate with the client. This is the amount that gets paid to us, per day that the contractor is on site.

We then agree a rate with the interim - typically 80% of the rate above (20%) margin.

This gets paid monthly by the client - we pay you weekly.

So - as an example if your rate was £400 per day - I'm charging my client £500. So I make £100 per day on the assignment, for as long as you're there.

For your information, this then breaks down further - Billing consultants get a percentage of the amount of money they make for the company - personally mine works out at about 15% all told - but its lower at the lower end, and higher at the higher end.

Typically a fairly good consultants portfolio of contractors will generate somewhere around £25k per month (based on about 10-15 contractors out). That works out to about £2500 in commission per month roughly - Basics are very modest - £25k annual base would be considered fairly good.

This is just an example - right now I'm living off my basic and about £500 in comission - if I worked it out per hour, I'd be below minimum wage right now!!

I hope that gives you an idea - ask yourself - would you work yourself to the bone, in one of the most intense environments out there, for a measly £50k a year??

Obviously this is different at the "spotty oik" end of the market - but I hope that gives you some insight into the world of the professional interim recruitment.

TAV

[blacjac]

Typically a fairly good consultants portfolio of contractors will generate somewhere around £25k per month (based on about 10-15 contractors out). That works out to about £2500 in commission per month roughly - Basics are very modest - £25k annual base would be considered fairly good.

This is just an example - right now I'm living off my basic and about £500 in comission - if I worked it out per hour, I'd be below minimum wage right now!!

What a load of bollocks.
Taking your example of 25k basic + 500 / month comission = 31k a year.

Working on permie calculations (i.e. divide by 52 weeks), you are earning over £15 / an hour for 37.5 hours a week.

Minimum wage is currently £5.73 / hour, so to be earning less than that you would have to be working over 104 hours a week, or 14 hours a day, 7 days a week, or 21 hours a day, 5 days a week.


And you wonder why nobody trusts agents?

[BrilloPad]

I APOLOGIZE - http://forums.contractoruk.com/busin...ht=agency+fees

EEK:

Dont apologize on cuk. I nearly fainted then........

[The Agents View]

What a load of bollocks.
Taking your example of 25k basic + 500 / month comission = 31k a year.

Working on permie calculations (i.e. divide by 52 weeks), you are earning over £15 / an hour for 37.5 hours a week.

Minimum wage is currently £5.73 / hour, so to be earning less than that you would have to be working over 104 hours a week, or 14 hours a day, 7 days a week, or 21 hours a day, 5 days a week.


And you wonder why nobody trusts agents?

It's actually a figure of speech - but the scary thing is that I'm getting close to that level. I am generally in the office at 7am Monday to Friday - I generally leave at 8pm - drive home and eat my tea (so 1hr give or take). I then prepare candidate profiles and search for anyone that really stands out on the job boards. I also catch up on emails and plan the next day so I can hit the ground running. I generally close my laptop to work stuff at about 11pm.

Saturday and Sunday I generally come in to the office for about 6 hours - plus take calls and occassionally make them at the weekend too.

So a conservative estimate:

15hrs working or doing work related stuff per day - Mon-Fri - 75hrs per week.
6 Hrs over the weekend 82 hrs per week.

Right at the moment, an hourly rate of £7.27.

No point in lying though - when times are good, they're very good - it's when they're bad that you start to lose the will to live.

And I'll thank you not to tar me with the same brush as the monkey agencies you've been using - you'll notice that my posts on here are more helpful than those of most contractors - let alone agents - so I'd thank you to consider your responses before posting.

TAV

[ratewhore]

To the OP, pimps don't take a cut of the monthly fee. They negotiate their rate with their client. The pimp is your client, and it's up to you to negotiate your rate with them.

Consequently, the rate between pimp and client is not 'your' fee for the pimp to take a cut of...

[blacjac]

It's actually a figure of speech

No it isn't.

And I'll thank you not to tar me with the same brush as the monkey agencies you've been using - you'll notice that my posts on here are more helpful than those of most contractors - let alone agents - so I'd thank you to consider your responses before posting.

Do you know what forum this is?

TAV

Tay