Agency Percentage. Does it matter or not?

[NotAllThere]

I've been a hiring manager. I would select a few agents that I'd got to know, and who could deliver, have them do the initial search and selection. Then I'd go through the supplied CVs and interview the ones that most interested me. That seems to be good use of my time - far better than going through all the hassle of placing an ad, handling all the responses etc. etc., so I can get on with generating income for my company.

Of course, if I had a position going, I'd put it through my own network first, in the hope that one of them was available. But if not - there's no way I'm going to go through that recruitment malarky myself. I've far better and more productive things to do.

From the agencies point of view, the ones I used would maybe place one or two persons per year with me. If they were lucky. And this was after we'd established a decent working relationship. Further, getting hold of candidates with the right skillset, to even attend interview is pretty tough even in bad times - outside of the readily commoditisable lower-skill contractors of course.

Anyway, back on topic. A contractor has no right to know the margin. However on all contracts I've worked on, I've eventually known what it is. The size of the margin does matter though - or rather the amount the client is paying. Clients will get rid of the most expensive contractors first, generally. Many clients think it is important as well - hence PSLs and dictating the margin.

[Lolas Cat]

It's NOT the contractor's money. It's the client's money. If it weren't for the agent telling the client how easily they can provide someone, and promising they can find someone good, the role might not even exist.

Are you serious?

So the jobs exist only because there are recruitment agencies?

[Lolas Cat]

I've been a hiring manager. I would select a few agents that I'd got to know, and who could deliver, have them do the initial search and selection. Then I'd go through the supplied CVs and interview the ones that most interested me. That seems to be good use of my time - far better than going through all the hassle of placing an ad, handling all the responses etc. etc., so I can get on with generating income for my company.

Are you saying that hiring doesn't generate income for your company?
There are some people here who claim they create jobs by recruiting people. (Although, to my mind they create jobs only for themselves. )

Of course, if I had a position going, I'd put it through my own network first, in the hope that one of them was available. But if not - there's no way I'm going to go through that recruitment malarky myself. I've far better and more productive things to do.

Again, you are looking down at recruitment tasks. Obviously, all companies are different, but may I ask you what the HR dept at your company does? They should do all the work of placing ads and sorting out candidates.

From the agencies point of view, the ones I used would maybe place one or two persons per year with me. If they were lucky. And this was after we'd established a decent working relationship. Further, getting hold of candidates with the right skillset, to even attend interview is pretty tough even in bad times - outside of the readily commoditisable lower-skill contractors of course.

Anyway, back on topic. A contractor has no right to know the margin. However on all contracts I've worked on, I've eventually known what it is. The size of the margin does matter though - or rather the amount the client is paying. Clients will get rid of the most expensive contractors first, generally. Many clients think it is important as well - hence PSLs and dictating the margin.

And the most expensive contractor doesnt necessarily mean the one who earns best. It can also mean the one with the greediest agent.

[The Agents View]

I've never seen an agent eliminate all of that. Certainly not the first bit, I've always had to do the work first.

I can only comment on how it works for me. You work for a week, put your timesheet in by the tuesday it gets paid the following Friday. If you miss that one, I run another payroll on thursday, which pays on Tuesday the following week.

What are you guys seeing? 30 day terms or something??

[The Agents View]

but may I ask you what the HR dept at your company does? They should do all the work of placing ads and sorting out candidates.

Are you flaming kidding me? Have you ever tried to do ANYTHING through HR??

Human Resistance to Agencys.
Human Remains to line Managers

They are, on the whole, more useless than ANY agent.

[d000hg]

Are you serious?

So the jobs exist only because there are recruitment agencies?

Read my post again. I implied SOME jobs exist for this reason, since logically anything that facilitates a company finding good people without long lead-in times will make them more easily consider hiring someone.

[Lolas Cat]

Are you flaming kidding me? Have you ever tried to do ANYTHING through HR??

Human Resistance to Agencys.
Human Remains to line Managers

They are, on the whole, more useless than ANY agent.

I agree with that description.

And that's the problem: someone is not doing their job properly.

Therefore you exist.

[Spacecadet]

Good luck with your cashflow on that...... 30 days worked, plus 30 days terms, plus late payment (fairly inevitable with a blue chip at least) = 60+ days with no money in, and alot of money out.....

Live without us maybe - survive with out us, perhaps a bit more complex......

Having worked direct more than once, I found a very very simple solution to that problem. So simple, even an agency could manage it.

Have some money in the bank... that way when the client takes 3 months to pay an invoice, you're not reduced to bread and beans when you're owed £50k+

And don't give me the "what if the client goes bust" crap... agencies also go bust!

[TheFaQQer]

And don't give me the "what if the client goes bust" crap... agencies also go bust!

PCG Plus members have some degree of insurance against agents going bust, but nothing to protect you if the client goes bust.

[MayContainNuts]

PCG Plus members have some degree of insurance against agents going bust, but nothing to protect you if the client goes bust.

Thats a good point. Being a member of the PCG offers a number of very useful benefits.

I have found the agent I have used for my present role to be exceptional. He helped in both the initial role and with my recent rate rise. I do not know what percentage he is on, but to me it's worth it!