Found out what my agency make charge for me

[SandyD]

Like the others said, think carefully and assess your situation before you do anything

[northernladuk]

Just getting my bananas ready for the super boomed post at renewal time!!!

[TheFaQQer]

At my last client on the system for all to see was an excel spreadsheet with contractor details from a well known agency (not the one I was with) No rates were mentioned but contact numbers, skill level, attitude, if they accepted a pay cut, who to extend & who not to based on recommendations from PMs, line managers etc. Made for interesting reading, as I worked with some of the contractors mentioned as they were still there.

Admit it, you were tempted to "correct" the list and add a few to the "who shouldn't be extended" list, weren't you?

[quackhandle]

Admit it, you were tempted to "correct" the list and add a few to the "who shouldn't be extended" list, weren't you?

You may think that, I couldn't possibly comment.

qh

[Wanderer]

Well, it finally happened, I found out what the agency is charging the client for me. 30% on top of my rate!

I would act on this and get the agent's margin reduced. 10% sounds reasonable which gives you a 10% increase and the client a 10% saving. Everyone's a winner (except the agent). As others have said, you are going to have to tread very carefully on this though.

Had an interview the other day, and strangely enough the client at the end of the interview discussed the rate with me, and he said, SandyD, it says here that your agreed rate is £xxx I was baffled, actually the rate he quoted is exactly the one I agreed with the agency, I thought they would have charged more, but it seems some agree a flat fee for all contractors.

There are two possible business models here.

1. The one malvolio talks about whereby the agency is paid £X amount and they negotiate a rate £Y with the contractor. Agencies see it that "you are taking a cut of their money" and they negotiate the best margin they can in the circumstances. The client will typically take no interest in what the contractor gets paid, they just pay the £X to the agency and leave them to deal with the dirty work. This is the agency's favourite model because it offers a scope for making a good margin on a contract.

2. The other model is that the client takes the view that they are engaging a contractor for £X amount per day and they pay the agency a percentage or fixed fee on top of this to manage the recruitment, contract and payment of the contractor. In this situation, the client will often state the rate openly in discussions with the contractor though they may still require that rate negotiations are dealt with via the agency as they are best placed to do this. When a rate is finalised, the agency informs the client, adds their mark-up/fee and the deal is signed off. More and more clients are demanding this business model and selecting agencies on a "preferred supplier" basis as they perceive it as being fair and transparent.

SandyD, I think you came across a model 2 scenario whereas jmo21 is dealing with model 1.

I will leave it as an exercise for the reader to decide which business model they prefer.

[northernladuk]

I would act on this and get the agent's margin reduced. 10% sounds reasonable which gives you a 10% increase and the client a 10% saving. Everyone's a winner (except the agent). As others have said, you are going to have to tread very carefully on this though.

You do mean at renewal time of course don't you

[SandyD]

I would act on this and get the agent's margin reduced. 10% sounds reasonable which gives you a 10% increase and the client a 10% saving. Everyone's a winner (except the agent). As others have said, you are going to have to tread very carefully on this though.



There are two possible business models here.

1. The one malvolio talks about whereby the agency is paid £X amount and they negotiate a rate £Y with the contractor. Agencies see it that "you are taking a cut of their money" and they negotiate the best margin they can in the circumstances. The client will typically take no interest in what the contractor gets paid, they just pay the £X to the agency and leave them to deal with the dirty work. This is the agency's favourite model because it offers a scope for making a good margin on a contract.

2. The other model is that the client takes the view that they are engaging a contractor for £X amount per day and they pay the agency a percentage or fixed fee on top of this to manage the recruitment, contract and payment of the contractor. In this situation, the client will often state the rate openly in discussions with the contractor though they may still require that rate negotiations are dealt with via the agency as they are best placed to do this. When a rate is finalised, the agency informs the client, adds their mark-up/fee and the deal is signed off. More and more clients are demanding this business model and selecting agencies on a "preferred supplier" basis as they perceive it as being fair and transparent.

SandyD, I think you came across a model 2 scenario whereas jmo21 is dealing with model 1.

I will leave it as an exercise for the reader to decide which business model they prefer.

Yes I believe most banks nowadays deal with model 2, however, I came across many are other suppliers calling themselves consultancies, in fact they just hire contractors and charge for them consultancy rates.

[Notascooby]

Having only every contracted in finance it's always been model 2 - Client knows what agency are paying etc, transparent all the way through. Takes the stress out of negotiations and means I'm on very good terms with my agents.

[NotAllThere]

Have fun,. but at least get the sums straight so you and the management ar talking the same numbers. The agency aren't putting 30% on your rate. You are getting roughly 23% of theirs.

77% surely?

[Sausage Surprise]

Working for a fecked up northern bank a few years ago on a 3 month gig at £300 a day (it was local). Two months in find out agent is charging client £450 a day for my services.

Offered 3 month extension so asked agent for extra £25 a day (didn't want to seem greedy and not letting on I knew what they were charging). Agent refused point blank saying I was on the max rate that "they" paid for the role I was doing.

I walked.....

Funnily enough I got a phone call from some director agent asking "WHO" refused me the increase and that we could come to some arrangement. After all their margin was down to zero now

Unfortunately (for the agent) I had already lined up a new gig at this point on a tulip load better rate darn sarf.