Agency Percentage. Does it matter or not?

[craig1]

Especially if your company happens to BE a large, corporate business, that happens to be a recruitment company.

On that specific point, and on the original topic, in my decade+ of contracting I've discovered that the larger the agency, the higher the margin plus the poorer the service both the client and contractor receive. Also, the larger the agency, the less they actually know about contracting and businesses. One massive recruitment agency's "legal department" were arguing strongly that a LLP could not be considered a "limited company" and did not have any independent legal status so I'd have to go on PAYE with them.

A small, well established agency can usually run rings around the larger ones for smaller margins (while still making good profit) combined with greater all-round skills and service for both client and contractor.

[pmeswani]

Oh and I forgot. Bidding for work - again, written.

What about processing payments and providing remittance advice slips?

[The Agents View]

What about processing payments and providing remittance advice slips?

Done by accounts - that's where we put all the people who can't write properly.......

[d000hg]

On that specific point, and on the original topic, in my decade+ of contracting I've discovered that the larger the agency, the higher the margin plus the poorer the service both the client and contractor receive. Also, the larger the agency, the less they actually know about contracting and businesses. One massive recruitment agency's "legal department" were arguing strongly that a LLP could not be considered a "limited company" and did not have any independent legal status so I'd have to go on PAYE with them.

A small, well established agency can usually run rings around the larger ones for smaller margins (while still making good profit) combined with greater all-round skills and service for both client and contractor.

Isn't this just the "smaller companies are more flexible and give a personal touch" argument that has been heard in all industries, as small record shops are crushed by chains, Tesco put corner shops out of business, etc?

It may well be true but a large company also offers stability, a 2-bit agency might be a joy to work with until the day their client goes bust or delays payment. Then you wish you'd been with a soulless, bloated agency with the reserves to withstand such problems.

[craig1]

Isn't this just the "smaller companies are more flexible and give a personal touch" argument that has been heard in all industries, as small record shops are crushed by chains, Tesco put corner shops out of business, etc?

It may well be true but a large company also offers stability, a 2-bit agency might be a joy to work with until the day their client goes bust or delays payment. Then you wish you'd been with a soulless, bloated agency with the reserves to withstand such problems.

That's why I put "well established" in my point. Some of the small, niche agencies are fantastically profitable on lower margins than the big agencies that target those niche markets as part of their general service.