Agency Profit Margins

[Churchill]

Well come my renewal point the contract is changing hands and more work will be involved = higher daily rate or walkies

Yes, accepted. However, why should the agency pay for the change in responsibility/workload?

[Barriebazg]

Yes, accepted. However, why should the agency pay for the change in responsibility/workload?

Well it’s up to them really. As I will just get another gig if its not increased, so it is in there interest to keep me there and get a reduced pay or ill walk and they will have none. Think we both know which one they "should" do for business sense!!

[DodgyAgent]

Exactly. Also the company risks to lose a good candidate just because of too much greed of the agency if the contractor shops outside and finds a better rate. I think the margin should be legally forced to be transparent, at least for the companies that hire contractors.

An interesting example of how people use "spin" to justify their position. A contractor wishing to increase his rate seems to be a legitimate business transaction whereas any money that an agency tries to make is "spun" as "greed". Doubly ironic as 99% of recruitment consultants probably earn less than half of what an average contractor "takes".

[Churchill]

Well it’s up to them really. As I will just get another gig if its not increased, so it is in there interest to keep me there and get a reduced pay or ill walk and they will have none. Think we both know which one they "should" do for business sense!!

You're not quite getting this, are you? The agent acts as a go-between. What if you want a rate increase of £10 an hour and the client(not the agent) says "Yes, no problem"? You've not forced the agent to give up anything, have you?

FFS, bring back the days when you had to be intelligent to work with computers!

[Churchill]

Doubly ironic as 99% of recruitment consultants probably earn less than half of what an average contractor "takes".

Yeah, for doing feck all too!

[DodgyAgent]

Yeah, for doing feck all too!

That is another conversation churchill.

By the way I a have some cheap Turkish software bods going if you are interested

[Churchill]

That is another conversation churchill.

By the way I a have some cheap Turkish software bods going if you are interested

Have you ever heard of "Tech Mahindra"? Compared with them matey you're a fecking amateur!

Here is a line from a CV...

I am having 7+ years of experience, in Software service

I've got to interview the guy on Wednesday!

Churchill - In "Will somebody rid me of meddling beancounters" mode!

[Barriebazg]

You're not quite getting this, are you? The agent acts as a go-between. What if you want a rate increase of £10 an hour and the client(not the agent) says "Yes, no problem"? You've not forced the agent to give up anything, have you?

FFS, bring back the days when you had to be intelligent to work with computers!

Sorry I am obviously far less intelligent than you Churchill, I apologize profusely........

All I am saying is come renewal time I will say to the agent I want x amount. How he gets the rate, I am not fussed. I know he could take a hit on his margin and give me it or ask for an increase from the client either way I don't care as long as I get the daily rate I am after. If he got £1000 a day and paid me £600 I don't care to be honest as long as the £600 is what I am after.

[Bagpuss]

15-20% is normal

but depends how you work it out

company pays 50 p/h, agency pays you 42 p/h = 16%

whereas 8/42 *100 = 19%


I think 16% is the correct calculation

[andy]

15-20% is normal

but then 90% of agents are not exactly normal