What Boo said!
Agencies take circa 20% (18% usually). That is essentially the "profit margin" for the contractor or employee (i.e. their disposable income). This makes jobs through agencies attractive only attractive to those with no other options (obviously a generalisation).
Add to that that the agency is working against your (you are the hiring company here) best interests (and for their own), Boo is spot on.
Example: the developer of your dreams and a run of the mill, mediocre developer apply to your role via your preferred supplier agency agent (the one who sends you donuts through the post, who calls you by your first name but who you have never met).
The developer of your dreams knows he is good and wants 20% more than the agents asking rate (i.e. you can afford him without an agent) - but he's open to negotiation. The mediocre developer knows he isn't good and jumps at the low-ish rate.
The agent is very busy and has 15 other roles he is looking for that very same day.
Do you think you are going to even hear a whimper about the dev of your dreams? Answer: no, you wont because firing off the CV of the mediocre developer is quicker and the agent is not going to attempt to negotiate a rate raise because you will want to know why (there is a good dev who wants to negotiate), you will then want to interview the dev, and you will then hire him because he is good - but you only have the original rate signed off, and the agent's margin is thus destroyed.
And the developer of your dreams will not get in touch with you direct to see if you will negotiate; either because your company identify has been kept secret by the agent (less likely these days in my experience), or because the agent tells the dev of your dreams that he *has* been put forward for your role (when he hasn't). So the dev of your dreams walks away thinking that he has been considered and rejected, and moves elsewhere. The agent does this knowingly to neutralise the threat of the dev going around him.
All this is if the good dev even bothers to apply for the role that is advertised at £80/day lower than the rate offered by your company.
Look - it's not that hard - advertise direct on LinkedIn or StackOverflow at the original rate before the agent took his cut and sift through a few CVs. The good ones will stand out like sore thumbs.
Agencies take circa 20% (18% usually). That is essentially the "profit margin" for the contractor or employee (i.e. their disposable income). This makes jobs through agencies attractive only attractive to those with no other options (obviously a generalisation).
Add to that that the agency is working against your (you are the hiring company here) best interests (and for their own), Boo is spot on.
Example: the developer of your dreams and a run of the mill, mediocre developer apply to your role via your preferred supplier agency agent (the one who sends you donuts through the post, who calls you by your first name but who you have never met).
The developer of your dreams knows he is good and wants 20% more than the agents asking rate (i.e. you can afford him without an agent) - but he's open to negotiation. The mediocre developer knows he isn't good and jumps at the low-ish rate.
The agent is very busy and has 15 other roles he is looking for that very same day.
Do you think you are going to even hear a whimper about the dev of your dreams? Answer: no, you wont because firing off the CV of the mediocre developer is quicker and the agent is not going to attempt to negotiate a rate raise because you will want to know why (there is a good dev who wants to negotiate), you will then want to interview the dev, and you will then hire him because he is good - but you only have the original rate signed off, and the agent's margin is thus destroyed.
And the developer of your dreams will not get in touch with you direct to see if you will negotiate; either because your company identify has been kept secret by the agent (less likely these days in my experience), or because the agent tells the dev of your dreams that he *has* been put forward for your role (when he hasn't). So the dev of your dreams walks away thinking that he has been considered and rejected, and moves elsewhere. The agent does this knowingly to neutralise the threat of the dev going around him.
All this is if the good dev even bothers to apply for the role that is advertised at £80/day lower than the rate offered by your company.
Look - it's not that hard - advertise direct on LinkedIn or StackOverflow at the original rate before the agent took his cut and sift through a few CVs. The good ones will stand out like sore thumbs.
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