Developer in finance and Agency cut?

[frankjj]

Hi all,

I am new to contracting and just discovered that agent takes a cut on upon placement of 12% of the rate. Quite surprising to hear this! I thought they just get a fee.

Is it the same for developers in finance?

How about permanent positions, here agents get a fee from employeer right? I mean I don't have to pay him?


Thanks,

jj

[TheFaQQer]

I am new to contracting and just discovered that agent takes a cut on upon placement of 12% of the rate. Quite surprising to hear this! I thought they just get a fee.

For a contract, they are the ones that are paying you - from the money that they receive from the client (or are due from the client) they give you a certain percentage. That may or may not be 12% - some will be higher, some will be lower.

Is it the same for developers in finance?

Probably.

How about permanent positions, here agents get a fee from employeer right? I mean I don't have to pay him?

For a permanent position, once you are employed, you have no contractual arrangement with the agency, so it would be impossible for them to take a monthly fee from your salary. I believe that the typical arrangement between agency and employer would be an up-front percentage of first year's salary, but there may well be other arrangements available.

Why would you care?

[Hex]

For a contract, they are the ones that are paying you - from the money that they receive from the client (or are due from the client) they give you a certain percentage. That may or may not be 12% - some will be higher, some will be lower.

Not necessarily. Most IBs have a fixed percentage agreed with the PSL Agencies. The IB dictate what the agency cut is and the IB also agree the contractors rate. I would guess some other big companies may work this way too with agencies on their PSL.

[Not So Wise]

Why do people start contracting without doing even the most basic research?

Yes all agents take an ongoing fee/margin from clients for contractors as they (should) provide ongoing factoring and payment services. And yes 12% is pretty much an average rate, some charge less, some charge a lot more

The one off fee are for permanent placements and no you should never have to pay an agent for anything, contracting or permanent, it's the client/employer who pays

[frankjj]

just to clear out things.

I was suprised to discover that agent takes a continuous cut on the daily rate of a developer.
It is odd to me that a skilled professional feeds the ass of some middle man that barely knows how to use the microwave and doesn't provide any value. Sounds illegal.

More than being a contract now I am thinking of becoming a recruiter.

[Stan.goodvibes]

More than being a contract now I am thinking of becoming a recruiter.

Sorry, you have to be a chav

[Wanderer]

I was suprised to discover that agent takes a continuous cut on the daily rate of a developer.

Yep, that's the way it works. Client pays the agency, agency takes a cut, agency pays the contractor. 12% is pretty much par, less than that if they are a preferred supplier, more if they are lucky.

At least you know how much they are getting and that you aren't getting ripped off by an agency taking a massive cut.

More than being a contract now I am thinking of becoming a recruiter.

I wouldn't do that job for love or money. Cold calling all day, dealing with arsey contractors etc. Agents are a necessary evil in my book, keep a close eye on them, make sure they are open about their percentage and you will be OK.

Most clients won't do without them.