advise needed on recruit agency's commission

[sararain]

Hi everybody,

I would be appreciated if you help on the story bellow.

I had been offered one month initial contract for an IT job with £150 daily rate. My agency is taking 15% so I'm ending up with £127.5 p/d. (which I think it's a fair commission rate comparing some other agencies!).

Now my one month is due to finish and I have been offered to be permanent. My recruit agency called me and said it's not offiial information but they might offer you between £23 to £25k for permanent rule, and they were wondering how much I'm looking for! Today I found that two of my colleges in same role, and bith referred from another agency are receiving 30k! They also had been paid £150 daily when they were on contract (3 month ago).
I was wondering;
1- how much normally should be my permanent salary when my daily rate is £150 on contract?

2- How normally agencies charge for a permanent position? would be one off charge or ...?

3- any advise that how can I deal with them, about my salary?

Many Thanks.

[craig1]

Hi everybody,

I would be appreciated if you help on the story bellow.

I had been offered one month initial contract for an IT job with £150 daily rate. My agency is taking 15% so I'm ending up with £127.5 p/d. (which I think it's a fair commission rate comparing some other agencies!).

Now my one month is due to finish and I have been offered to be permanent. My recruit agency called me and said it's not offiial information but they might offer you between £23 to £25k for permanent rule, and they were wondering how much I'm looking for! Today I found that two of my colleges in same role, and bith referred from another agency are receiving 30k! They also had been paid £150 daily when they were on contract (3 month ago).
I was wondering;
1- how much normally should be my permanent salary when my daily rate is £150 on contract?

2- How normally agencies charge for a permanent position? would be one off charge or ...?

3- any advise that how can I deal with them, about my salary?

Many Thanks.

First up, I'd be asking the agency if they were double-dipping, i.e. taking their cut off the client's money then taking a further cut off yours. Sounds a bit iffy if others were getting the £150 and the agency might be taking advantage of a newbie contractor.

On your questions:

1. How long is a piece of string. Daily rates rarely link to permanent salary.

2. Agencies tend to get tied one-off payments for permie jobs. They get a set % that's based on your salary, the more you get the more they get. If you leave in a set time though the client can demand some back in most occasions.

3. If you're doing an identical job to those on £30k and there's no difference then that's probably a good starting place. Make it clear to the agency you know what others are being paid and would like that as well.

[Wanderer]

1- how much normally should be my permanent salary when my daily rate is £150 on contract?

2- How normally agencies charge for a permanent position? would be one off charge or ...?

3- any advise that how can I deal with them, about my salary?

1. But your daily rate isn't £150, it's £127.50. I'd say that this would equate to a permie salary of about £18-20k. If they are offering £23-30 then I'd recommend that you jump at the chance. Run the numbers through <snip> and see how they stack up. If you are using an umbrella then tick the box for "Inside IR35". Don't forget that as a permie you should be getting a lot of benefits you never got as a contractor too.

2. Agencies are pretty much not allowed to charge workers (though they can take a margin on your daily rate, as they are doing). They will do a deal with the client, it's almost certainly going to have nothing to do with you.

3. Sit down one night and think through all the reasons why this client wants you, how you can help them make money or drive efficiencies etc. You've got to sell yourself to them.

Good luck!