Hyphen / Spring (Adecco) Employed Consultants Model (ECM) big rip off ?

[Martin2007]

Hyphen / Spring (Adecco) Employed Consultants Model (ECM) big rip off ?

Looks like in this difficult economic condition when every one squeezing to the bone agencies like Hyphen / Spring finding new way to get 50% margin called ‘Employed Consultants Model’. My friend in HBOS was saying there ECM model get Hyphen at least 50% margin !

Any one here under ECM (glorified name for ‘fixed term contract’). ?

Is this level of rip off is with insider help from companies like HBOS & Jaguar..? Because in most cases the client is not getting any benefit & they are paying market rate. Is it worth raising this with HR of these companies..?

[northernladuk]

It's been going on for years and isn't just these people.

A friend of mine was one of these at Barclays. He was paid a permie pre rata wage with benefits as an employee of the agency but placed in Barclays as a consultant.When the contract came to end they had a month of being based at the agents office to look for a gig and then finished.

Pretty disgraceful they are to be fair but nothing new.

[Martin2007]

But who is benefiting in these type of arrangements?. Client is not getting any benefit. EC also not getting any benefit as he is getting less than half of contract rate paid by client.

Hyphen claims in their site.


Benefits

If your business is looking to benefit from the combined advantages of permanent and contingent resourcing, the Employed Consultant Model (ECM) could be your answer. Providing you with a flexible workforce with a permanent mindset, enjoying the support and development of an employer organisation.

Introducing hyphen’s Employed Consultants (ECs) to your organisation will deliver a host of benefits:

• Cost Effectiveness - rates that are highly competitive with traditional consultancy rates due to supply from a lower-cost and lower overhead organisation when compared with other UK IT Services providers

• No ‘Deemed Employment’ - protection against all employment liabilities including tribunals. Consultants are employed by hyphen directly so there is no deemed employment risk


• Scaleable – a contingent resourcing solution that can flex to meet a client’s demand profile

• Low Attrition - ECs are of a permanent ‘mindset’ which, together with the benefits they enjoy as employees, means they less likely to move from job to job

• Fixed Daily Rate Card – the cost to you is agreed in advance and is not dependent on an individual contractor’s pay-rate. Therefore rate increase requests associated with contractor renewals are avoided. All of this aids the budgeting process

• Rigorous Selection Process - as the employer and career manager of our staff, it is in hyphen’s interest to secure the best possible candidate for any role. This leads to a high quality technical and competency based selection process which is designed to allow tailoring to suit your specifications

• Temp to Perm option – allows the client to cherry pick outstanding individuals

[cojak]

But who is benefiting in these type of arrangements?. Client is not getting any benefit. EC also not getting any benefit as he is getting less than half of contract rate paid by client.

Hyphen claims in their site.


Benefits

If your business is looking to benefit from the combined advantages of permanent and contingent resourcing, the Employed Consultant Model (ECM) could be your answer. Providing you with a flexible workforce with a permanent mindset, enjoying the support and development of an employer organisation.

Introducing hyphen’s Employed Consultants (ECs) to your organisation will deliver a host of benefits:

• Cost Effectiveness - rates that are highly competitive with traditional consultancy rates due to supply from a lower-cost and lower overhead organisation when compared with other UK IT Services providers

• No ‘Deemed Employment’ - protection against all employment liabilities including tribunals. Consultants are employed by hyphen directly so there is no deemed employment risk


• Scaleable – a contingent resourcing solution that can flex to meet a client’s demand profile

• Low Attrition - ECs are of a permanent ‘mindset’ which, together with the benefits they enjoy as employees, means they less likely to move from job to job

• Fixed Daily Rate Card – the cost to you is agreed in advance and is not dependent on an individual contractor’s pay-rate. Therefore rate increase requests associated with contractor renewals are avoided. All of this aids the budgeting process

• Rigorous Selection Process - as the employer and career manager of our staff, it is in hyphen’s interest to secure the best possible candidate for any role. This leads to a high quality technical and competency based selection process which is designed to allow tailoring to suit your specifications

• Temp to Perm option – allows the client to cherry pick outstanding individuals

The best contractors won't accept this type of contract so the client will actually be getting the mediocre ones who can't get a contract any other way.

[Wanderer]

But who is benefiting in these type of arrangements?. Client is not getting any benefit. EC also not getting any benefit as he is getting less than half of contract rate paid by client.

The agency is benefiting.

There are big consultancies which do this type of thing all the time. I guess the market decides what's viable and what's not. If they can't attract and retain good workers and clients then this type of business will fail. If they can make a go of it then it will thrive. That's capitalism for you...

[BolshieBastard]

Hyphen / Spring (Adecco) Employed Consultants Model (ECM) big rip off ?

Looks like in this difficult economic condition when every one squeezing to the bone agencies like Hyphen / Spring finding new way to get 50% margin called ‘Employed Consultants Model’. My friend in HBOS was saying there ECM model get Hyphen at least 50% margin !

Any one here under ECM (glorified name for ‘fixed term contract’). ?

Is this level of rip off is with insider help from companies like HBOS & Jaguar..? Because in most cases the client is not getting any benefit & they are paying market rate. Is it worth raising this with HR of these companies..?

They tried introducing this at one of my clients who'd started using them as sole supplier.

Hardly anyone took it up to my knowledge. The 'rate' was so piss poor and lacked any benefits people just laughed at them.

[SueEllen]

The agency is benefiting.

There are big consultancies which do this type of thing all the time. I guess the market decides what's viable and what's not. If they can't attract and retain good workers and clients then this type of business will fail. If they can make a go of it then it will thrive. That's capitalism for you...

WHS - however the big consultancies do this with their permanent employees who they make redundant if they aren't on a project i.e. billable after a certain time period.

When the consultancy has money trouble then the permies training etc goes out of the window.

Only new contractors who have never had the experience of working with or along-side these types of businesses would take these type of FTC.

[Sausage Surprise]

I'm thinking Bob would lap this up....

[rob s]

I knew of a DRC being paid £350/day and being billed out at just shy of £2k after going through something similar to this but several layers.

[Martin2007]

When you are desperate something like this might be better option than on bench. Also we can use this to find next 'real' contract role.

But if all agencies looks at this option as its gives minimum 50% rate as profit, contract roles might disappear soon right.?