Should agents margins be transparent?

[EternalOptimist]

He's calling me a cabbage now commie barsted

[DimPrawn]

No, we don't need any more interference in the IT industry. We don't need any more laws, legislation or codes of practice. Especially don't need it drafted by a Labour government.

If you are in business on your own account, knowing or having a pretty good idea what the margin is and what the client is paying is down to your own business skills, negotiation and communication, and should remain so.

Thanks.

[d000hg]

A new train of thought... as a company which hires some contract workers I don't want to reveal my margins. I put in substantial time scouring all the crud in cheap countries to find the few gems who are both skilled and much cheaper than UK rates. If I charge a 'reasonable' markup of 10-20% on someone I pay $20/hr, it's hardly worth it. If they work at an equivalent level to what would normally cost £35/hr in the UK, why shouldn't I charge them out at £25-30hr?
I'm making a big margin while also providing good value to my customers, yet a typical middle-manager would probably be bitter/spiteful if he knew all the figures.

[Spacecadet]

A new train of thought... as a company which hires some contract workers I don't want to reveal my margins. I put in substantial time scouring all the crud in cheap countries to find the few gems who are both skilled and much cheaper than UK rates. If I charge a 'reasonable' markup of 10-20% on someone I pay $20/hr, it's hardly worth it. If they work at an equivalent level to what would normally cost £35/hr in the UK, why shouldn't I charge them out at £25-30hr?
I'm making a big margin while also providing good value to my customers, yet a typical middle-manager would probably be bitter/spiteful if he knew all the figures.

By the sounds of things you aren't just a CV harvester/invoice factorer

[RichardCranium]

No, we don't need any more interference in the IT industry. We don't need any more laws, legislation or codes of practice. Especially don't need it drafted by a Labour government.

• Margin Tax
• Margins Regulations Agency
• Ofmar - the regulations watchdog office quango
• Contractor Registrations Agency
• Recruitment Agency Registrations Agency
• £5000 Recruitment Agency Licence
• £250 annual Contractor Registration Certificate

What have I missed?

[Spacecadet]

[LIST]
What have I missed?

Alien Lizards

[EternalOptimist]

• Margin Tax
• Margins Regulations Agency
• Ofmar - the regulations watchdog office quango
• Contractor Registrations Agency
• Recruitment Agency Registrations Agency
• £5000 Recruitment Agency Licence
• £250 annual Contractor Registration Certificate

What have I missed?

2 £billion IT project to implement the service

[DimPrawn]

• Margin Tax
• Margins Regulations Agency
• Ofmar - the regulations watchdog office quango
• Contractor Registrations Agency
• Recruitment Agency Registrations Agency
• £5000 Recruitment Agency Licence
• £250 annual Contractor Registration Certificate

What have I missed?

A law that states, since you are just a disguised employee anyway, your rate cannot be higher than an equivalent permie, in the name of fairness.

Oh and £1bn database to hold every salary and rate of every person (along with their DNA, incase they turn bad) so everyone can be monitored.

Which then fails and another DB needs to be built. By EDS again. In India.

[DodgyAgent]

A new train of thought... as a company which hires some contract workers I don't want to reveal my margins. I put in substantial time scouring all the crud in cheap countries to find the few gems who are both skilled and much cheaper than UK rates. If I charge a 'reasonable' markup of 10-20% on someone I pay $20/hr, it's hardly worth it. If they work at an equivalent level to what would normally cost £35/hr in the UK, why shouldn't I charge them out at £25-30hr?
I'm making a big margin while also providing good value to my customers, yet a typical middle-manager would probably be bitter/spiteful if he knew all the figures.

I have never understood why % fees are lower for lower salaries than for higher salaries. The cost of placing someone on £25K is just as much as placing someone on £60 K.
We also have a client that pays us 4% on any contractor earning less than £700 per day yet anything above that they dont expect any %. So someone on £1400 a day is a 2% margin (which is a loss!)

[Bunk]

I have never understood why % fees are lower for lower salaries than for higher salaries. The cost of placing someone on £25K is just as much as placing someone on £60 K.
We also have a client that pays us 4% on any contractor earning less than £700 per day yet anything above that they dont expect any %. So someone on £1400 a day is a 2% margin (which is a loss!)

Am I missing something? You say the cost of placing someone is the same regardless of rate, and then you claim that you make a loss if you don't charge more for different rates?