Monthly or weekly pay?

Re: 17% is very high.

IF you havent been bribed by the agents to opt out of the new regs you can always go direct at the completion of the contract. Thus cutting them lose and gaining yourself a nice little pay rise.

The agents cannot with hold money (which they probably will try) OR force you to sign back on with them (unless there is a provision in your contract allowing them to be gradually phased out) nor can they force you to leave the client (restraint of trade, unless site specific are wholly unenforceable).

If you decide to go down this route you might want to get some "proper" legal advice. You will only need 10 or so minutes of a lawyers time so it shouldnt cost you too much in the end. Certainly the agents will most likely try it on with you but in reality there isnt a lot they can do.

However, if you have opted out...then you are rooted. You can thank the PCG for that one.

Check out www.john.antell.name/article011.htm for more info on the regs.

Mailman

Re: 17% is very high.

does an agency have to tell you there margin if you ask them. I always throught that it would be a bit cheeky asking them. But then i am also new to this game with only a year under my belt.

Re: 17% is very high.

You guys obviously live in an entirely different world to me.

For what I do (real-time embedded) getting a margin of under 20% is often an achievement. It's not un-common for agents to be unprepared to go below 15% and if you try too hard you will lose the job (telling you that the job has been pulled and the client that you've gone elsewhere) and usual for them to look for 25%.

3 of my colleagues here have left because they discovered that the agent was stiffing them for 28%, and yes they did ask, they were told (lied to) that it was 18%. Realistically, what do you do when this happens? In the recent market they know that you won't walk with no other job to go to.

This idea that 17% is on the high side may be the rule in what you do, but across the total range of contractors it just doesn't apply. Not in the world where there are no PSLs with fixed margins and individual managers recruite their positions through the one or two 'consultants' that they like dealing with.

tim

17% is very high. In over 7 years I have never been subjected to more than 12%. The acceptable level in my opinion is 10%.
At the end of the day if you are happy with your rate then that is all that really matters.

My agency takes 7%.

What are they doing for 17%? Nothing I'd bet.

Thanks for your help guys. I'll leave it as it is, as you say. As much as I appreciate that agencies are only out for themselves, I'm sure things aren't made any easier if contractors become unneccesarily awkward.

I agree with planetit - leave things as they are for the first 3 months. You'll be fine, I'm sure.

If the client then ask you if you'd be OK for an extension (and assuming you're OK to stay), say "yes but I have to talk to the agency" to you client. Ask your agent for the rise - they will probably start by telling you "we'll ask the client but it is doubtful they will agree to a rise". When they come back to you, if they say "well the client won't give you a rise yet", say that you understand but since it's a renewal and therefore the agency didn't have to do any work, ask them if they can reduce their rate (you can be cheeky and hint that you have other options - if you dare). They might and let you pocket the difference. Or they won't and then it's down to your negociating skills and your nerve.

but yes, 17% isn't outrageously high - it's just a bit higher than the average, that's all.

If it's only for 3 months, leave it as it is and get it changed to weekly at renewal. Not worth making yourself look stupid to the agent in my opinion.

Additionally, if my agency and the client are happy to work with weekly pay, is there any reason why I can't get that part of the contract changed now its been signed? Or is that totally out of the question. Obviously I don't want to get a reputation as someone who doesn't honour contracts, but if everyone's happy it should be alright shouldn't it? Sorry for the seemingly obvious questions, as you know I'm a first timer.

"I really struggle to understand why you refused a weekly pay in the first instance"

So do I. One of them things I suppose. I will try and renegotiate my rate after 3 months, as I know the rate the client is willing to pay. I was under the impression though that 17% wasn't too high for a first time contract, I did have to work out a month's notice aswell, which was kind of the reason I grabbed this contract with both hands (and it's at a great company too). I've heard people on here complaining about 30/40% commissions from agents, so I havan't done that badly have I?

I really struggle to understand why you refused a weekly pay in the first instance

17% would be quite high, however for a first contract, if it's just for 3 months that's fine - when (if) there is a renewal after 3 months, ask for a rise - if they say the client won't give a rise (likely after just 3 months), ask if they would take betwen 12 and 15% cut and therefore pass the difference to you.
If they still refuse, well, you can't do much about it, short of refusing but obviously you have to have other options

Monthly is quite common, but if you can persuade them to pay weekly that’s obviously good. Since the risk of them disappearing without paying you is less. Better to have the money in your bank rather than someone elses.

17% is way high.

Who are they?

When my agency prepared my contract they indicated that I would be weekly paid, however I said that I'd prefer to be monthly, so they changed it. Having thought about it though, isn't it safer to go weekly? I mean, if an agency is 3 weeks late paying a weekly wage that's one thing, however if they're 3 months late paying a monthly wage, that's quite catastrophic isn't it? I'm starting to think I should have gone weekly, so that any delays with payments can be actioned sooner rather than later. Once again my first time paranoia is kicking in because i'm seeing nothing but bad things being written about the agency I'm with (though to be fair they've been nothing but great with me - 17% commission for a first time contract, always answer phone and are prompt and courteous with emails).