Switching recruitment agency while working for same client

**Wanderer** · 20 July 2011, 23:03

Originally posted by Itbee View Post

I basically want to change my recruitment agency but not place of work (client). I am IT contractor and operating through limited company.

Welcome!

The quick answer is NO you can't do that. If an agency has introduced you to a client then they expect to make their money by acting as the middle man between you and the client. If you try to cut them out then they aren't going to like that. Most likely you will have a restraint of trade clause in your contract and you will start a massive fight pissing the agency and the client off.

Is there a restraint of trade in your contract that prevents you from working through a different agency? How long is the restraint for and did you refuse to opt out before you were introduced to the client, thus limiting the restraint of trade period and transfer fees?

You also have to consider the reasons for switching agencies. If its because the incumbent agent is pissing you off but the client is OK with them then you probably aren't going to get far and the client won't be able to see any reason to support you switching agencies. Don't try it.

If it's because the incumbent agent is pissing the client off then there is a chance that the client will deal with the agency and come to some arrangement to allow you to be transferred or perhaps just transfer you and tell the agency to go and jump.

If you think the agency margin is too high then find out how much the client are paying them and use this as a bargaining chip to get yourself a pay rise at no extra cost to the client.

Good luck!

**northernladuk** · 21 July 2011, 08:51

Changing LTD's won't help here either. Just because the name on the contract is different the working practices are exactly the same i.e. you (same person) are on clients site (same client) doing the same work. The spirit of the law will be upheld regardless of different wording.

From my experience as well even if the client is pissed off you need to tread very carefully. It is highly unlikely to go legal but the old and new agent can fight with the client to the extent it puts your position in jeapordy. I do believe I didn't get a gig because two agents were fighting and it was easier for the client to wash their hands of it and start again. Different situation but highlights the issues of fighting with agents.

**Itbee** · 21 July 2011, 14:03

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

**northernladuk** · 21 July 2011, 15:06

Originally posted by Itbee View Post

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

And you can't see the answer here? You have position power, both you and client can squeeze the agent. He does work on behalf of the client and relies on you for his income so really he is on the back foot in this situation and you need to use it.

Not much you can do right now but come renewal you tell him you want a rate that puts him down to 10% or you walk. Not only will he lose ALL of his revenue for a short time if you walk he is going to incurr the wrath of the client for being greedy and losing contractors due to that greed. The agent, unless he really is a complete spanner, does not have a leg to stand on and really 10% is an acceptable rate. Not the gift horse he had but perfectly acceptable.

Client happy, you are happy, agent will (rather begrudgingly) be happy. Sorted.

The only thing I would warn against here is considering the client as an ally. He isn't. He is your client. You should not discuss your and the agents rate with him and should not take his dissatisfaction as any sign he supports you.

**Itbee** · 21 July 2011, 15:47

Thanks for very useful replies.

I want to wait for end of my contract for negotiation but problem is I have to wait for couple of months for this and I am getting impatient...

**northernladuk** · 21 July 2011, 16:24

Unfortunately this is what happens when you find information out that isn't really your business (cue argument). At the end of the day you have to be content with the negotiation you did and that you accepted a rate you were happy with. You can't let it eat you up when you find out your have lost out else it will just end in tears.

Just knowing one number can turn a decent contract that will run smoothly in to a screaming mess that makes you miserable and depressed.

Just try and be content with the rate that you accepted and grin and bear it. The other option would be to take a different tact and admit to yourself if it is actually your fault the agent is taking this much as you didn't negotiate properly, praise the agent for his clever play of the situation and just plot your revenge in a few months

Either way, act professionaly, don't make yourself look a dick infront of the client by mithering him about it and look forward to a fat rise in a few months.

Post your boomed on here and we will give you a cheer.

**The Agents View** · 22 July 2011, 10:15

Originally posted by Itbee View Post

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

So, of the TOTAL rate the client pays, you get 70%?

Or, they add 30% to your rate?

These are fundamentally different things, and are the difference between a reasonable agreement, and something that takes the mick. If the rate is divided 70/30, that's a 30% margin. If it's 30% markup - that's about 22-23% margin (off the top of my head)

You also don't state your daily rate. If you're a £250 monkey, then 30% markup, is roughly right - £75 per day. If you're an £800 per day specialist, then yes, you can feel aggrieved at a 30% markup or margin I suspect.

**Itbee** · 22 July 2011, 11:46

I think I am going to wait for my contract to finish and then negotiate on rate. I think being patient for the time being is the right thing to do. As you mentioned if I start negotiating in the middle of the contract it can make me look very unprofessionanl in client's eye. All thanks a lot for answers. It helped a lot!
By the way rate is devided 70/30 and I am somewhere in the middle of Monkey and Specialist..

**northernladuk** · 22 July 2011, 12:08

Originally posted by Itbee View Post

I think I am going to wait for my contract to finish and then negotiate on rate. I think being patient for the time being is the right thing to do. As you mentioned if I start negotiating in the middle of the contract it can make me look very unprofessionanl in client's eye. All thanks a lot for answers. It helped a lot!
By the way rate is devided 70/30 and I am somewhere in the middle of Monkey and Specialist..

A Specialist Monkey then?

Switching recruitment agency while working for same client