Reply to: Contracting Direct

[Wanderer]

Do you not hjave to opt out then? Always been asked to by any agency i've been with.

Oh yeah, they always ask me to opt out too.

However, they can't compel you to opt out. When they do mention it I play dumb and ask them what it's all about and to give me some advice (in writing). Then they get all coy, so I diddle about for a while and eventually if they won't shut up I write back and tell them that "after due consideration, MyCo have decided to do nothing with regard to the opt-out" which leaves you opted in.

[dynamicsaxcontractor]

I'm sure every contract I've signed has a clause in it saying if the agent doesnt get paid, they're allowed to withhold money......and indeed in the case of my last contract, did!

If that's the case then there is no benefit at all to go through an agency unlesss you are forced to.

[brocky]

That will teach you not to opt out next time then....

Do you not hjave to opt out then? Always been asked to by any agency i've been with.

[MrB]

Most small businesses deal direct with their clients. We're unusual in using intermediaries.

This is a key point. Having a recruitment company as the intermediary generally does not feel business like.

@Thunderlizard - Really good points, I have had many agents on the phone to me who have really not taken much time to read past ASP.NET C# or whatever other skill their client is asking for. When I have had to find people to recruit, the relevance of the candidates that they send dont suggest that they have tried too hard. I really see the value of having someone doing this work, but 20% ongoing seems a little overpriced for the work done.

[Wanderer]

I'm sure every contract I've signed has a clause in it saying if the agent doesnt get paid, they're allowed to withhold money......and indeed in the case of my last contract, did!

That will teach you not to opt out next time then....

[thunderlizard]

It is more about perceived advantages than actual ones.
Agencies will talk about the hassle of sifting unsuitable CVs (i.e. pressing "delete" for the best part of a day and a half) and having to pay multiple invoices for your contractors (i.e. an extra 10 minutes for somebody every month or two) - but are these really worth 20% of contract rate?

They also talk about the liability angle - telling clients that contractors will behave unscrupulously and then close down their companies to avoid the liability, leaving them with nobody to sue. (then they go and give the client a contract that signs away most of the agency's liability anyway).

And worst of all is that line: "if they evade PAYE and they are directly contracted and deemed an employee, you're liable for it" - because having an agency in the deal doesn't make the client any less liable; and it's only because agency contracts are so often employee-like that there's any danger of being deemed an employee anyway.

[brocky]

......If you are concerned about getting paid in time you will be better off through an agent as you migth be spending quite some time chasing money when going direct.

I'm sure every contract I've signed has a clause in it saying if the agent doesnt get paid, they're allowed to withhold money......and indeed in the case of my last contract, did!

[brocky]

This thread seems to be going pretty deep.....in summary, wasn't the inital question basically 'whats the advantages of going through an agency for the employing business?' ...or am I not getting it too?

I'd suggest depending on corporate culture and attitute, some companies would definately rather go direct than via an agency but for others the benefits of delaing with agencies (and indeed for some companies only a select one or two) outweigh the hassle of having contractors going direct (of course depends on how manay contractors they employ too).

Most places (well, in my experience anyway) will insist you go via an agency. My current contract was found and offered without an agency but first thing I was asked was to pick from their list of three preferred supliers.

I've personally only ever gone via agencies but removing the 'pimp factor' would be brilliant!! ....though when I need a contract, first place I turn is the agencies!

[northernladuk]

Ok, maybe I used the wrong wording here or phrased it incorrectly. I should maybe have used a term such as 'business accumen' or something. I just thought surely when you are looking at something like this understanding how business's operate, the reasons agents are used and the benefits to the client etc You are in the loop so understanding how it works would set you in much better stead when asking questions like this or getting yourself out of situations.

Yes it is a line I use a lot as a lot of people don't seem to think like this and new guys don't realise it. Someone used this line on me in this forum (Mal I think) and the penny dropped so just passing it on. If it is useful advice why not keep using it? Worked for me.

Thinking and acting like a business is surely something that comes with experience? Part of the learning process is to ask questions, consider the replies and then think "oh yeah [penny drops] obvious really".

Much like learning anything new.

Live and let live, eh?

I don't totally agree with this. It is a mind set and if you don't conciously make the switch over you will never get it. Once you have that idea then yes totally agree it will come with experience. The other option is bounce around for years and never quite grasp it. We have seen enough examples on here of long term guys who haven't quite grasped it so surely to point it out again does no harm?

[mudskipper]

It gets asked once in a blue moon but most people tend to have the nouse to work this one out for themselves. You are business and should be acting and thinking like one. If you were this one should be pretty obvious sorry.

Spin it around and think of the hassle and the pitfalls if you were in your clients shoes.

Most small businesses deal direct with their clients. We're unusual in using intermediaries. I'm fairly new to this, but so far have managed to work direct, finding work through existing contacts, which, to me, certainly feels like how I should be doing it. I'm sure I will need to use an agent sooner or later, but as long as I can find my own work, I will. I have had hassle getting the actual contracts signed and have had to chase late payments, but it feels right from a business perspective to do it this way as long as I can.

[Platypus]

You are business and should be acting and thinking like one. If you were this one should be pretty obvious sorry.

Thinking and acting like a business is surely something that comes with experience? Part of the learning process is to ask questions, consider the replies and then think "oh yeah [penny drops] obvious really".

Much like learning anything new.

Live and let live, eh?

[nfoote]

You are business and should be acting and thinking like one.

northernladuk's favourite line!

[northernladuk]

I did not imagine I was the first to ask this but I get no results on search in the forum.

It gets asked once in a blue moon but most people tend to have the nouse to work this one out for themselves. You are business and should be acting and thinking like one. If you were this one should be pretty obvious sorry.

Spin it around and think of the hassle and the pitfalls if you were in your clients shoes.

[dynamicsaxcontractor]

Is it better to contract direct and not through an Agency?

Whenever I have tried I don't seem to get much interest from clients, but I find it easy to find contracts via Agents. Is there some advantage for the clients to just deal with Agents rather than going direct.

I think it's better to go direct rather than through an agency, if you can cut out the middle man why not? You should be able to get a better rate going direct, but the real benefit is to cut out all the crap suchs as lies and clauses. If you are concerned about getting paid in time you will be better off through an agent as you migth be spending quite some time chasing money when going direct.

[aceboy]

I think it comes down to whom you know....... For my last 2 contract, 3 yrs and 7 months (On going) I was placed direct, so no agency fee, but I still have to face off to the clients agency desk....This is also fee free....