Agency Profit Margins

[Francko]

For a reasonably good account manager then yes, for a resourcer it will be considerably less. For a high flyer (and there are not many of those) then £100 k plus.

How is a high flyer defined in your industry? Is it the agent that deals with more senior people or the ones who places the max quantity of bods?

[Francko]

I counter that the contractor model is the most effective and efficient way to employ someone, but some of you commit gross hypocrisy when you start whining about your lot.

I wasn't whining - I just think that the margin should be clear to the client as he wants someone working at a reasonable rate that is not looking to jump out of the window at the next opportunity, neither the contractor would be happy to be sent back home just because the agent is charging 50%. It might be fine for both but at least they do know what they are up to. That's the way it works for permanent jobs, doesn't it? It should be applied to contracts too. And perhaps would make the EB sector more competitive, rather than in the hands of a few oligarchies like now, don't you think?

[DodgyAgent]

I wasn't whining - I just think that the margin should be clear to the client as he wants someone working at a reasonable rate that is not looking to jump out of the window at the next opportunity, neither the contractor would be happy to be sent back home just because the agent is charging 50%. It might be fine for both but at least they do know what they are up to. That's the way it works for permanent jobs, doesn't it? It should be applied to contracts too. And perhaps would make the EB sector more competitive, rather than in the hands of a few oligarchies like now, don't you think?

Put like that it is a reasonable argument, I am just deeply suspicious of politicians motivation with regards to setting legislation.

[MarillionFan]

I see nothing wrong in exploting the stupid.

[padinka]

Back on subject...

SSS recently published their annual report for the period ending 30/11/2006 http://www.sthree.com/Report_Accounts2006.pdf

If I read it correctly:

> Overall gross margin: GBP 135.5m (34.5%)

> Profit on contractors: GBP 69.7m (21.3% gross margin)

> Average gross income per contractor/day: GBP 64.91

> Average permanent placement fee: GBP 8,563

This suggests the average SSS contractor is billed out at GBP 304.74 which is rather lower than I expected.

Padinka