Reply to: Agency margin

[Scrag Meister]

I did the same, agreed the rate with the client and they pay the agency (preferred supplier) about 6-7% on top of that as a fee for managing the contract and factoring the payments. Money for nothing in my opinion, but hey ho.

No factoring here!! I get paid when the agency do.

Works out 3 weeks in arrears, but has been on time or early so far.

Don't think they could afford to lose the HUGE client by cocking up payments, especially when its all handed to them on a plate.

[Wanderer]

HI am curious because I went direct to a previous client this time and they threw an agency in the works. Any guesses on what rate they would be looking at, seeing as they did no leg work to get the role.

I did the same, agreed the rate with the client and they pay the agency (preferred supplier) about 6-7% on top of that as a fee for managing the contract and factoring the payments. Money for nothing in my opinion, but hey ho.

[Hex]

He hasn't told you he's already advertising for a replacement, just in case.

I am curious because I went direct to a previous client this time and they threw an agency in the works. Any guesses on what rate they would be looking at, seeing as they did no leg work to get the role.

When I've had this in banking, the client's agent was paid by the client. I got paid 100% of my rate that I'd agreed with the client. The agency was paid something by the client for handling the payments and admin etc., I don't know what that was. Hays and Resource Solutions are commonly used in banks as in house agencies, even where there is another agency involved. They are just one more in the chain.

[The Agents View]

He hasn't told you he's already advertising for a replacement, just in case.

I am curious because I went direct to a previous client this time and they threw an agency in the works. Any guesses on what rate they would be looking at, seeing as they did no leg work to get the role.

I would try for 10% margin (i.e paying you 90% of the total paid by the client) - However I would negotiate down to 5% before it becomes completely not worth it.

Hope that helps

[rd409]

He hasn't told you he's already advertising for a replacement, just in case.

I work with a specialized skill set , that is not much available. The agent does not know, that there are 10 agents chasing one job, and there's only 1 candidate available for every 3-4 jobs in market ATM. Also if he wants to replace me, it's not going to be easy as the client are already p!$$ed off by the way he has handled the could-be extension. I don't see them giving him a second chance.

If the agents here wants a heads up, PM me.

[Scrag Meister]

My soon to be ex-agent, takes 26%. Not ready to negotiate anything during the extension. I havent told him that I have a new gig lined up after this one, and I am not extending. He is in for a shock.

He hasn't told you he's already advertising for a replacement, just in case.

I am curious because I went direct to a previous client this time and they threw an agency in the works. Any guesses on what rate they would be looking at, seeing as they did no leg work to get the role.

[rd409]

My soon to be ex-agent, takes 26%. Not ready to negotiate anything during the extension. I havent told him that I have a new gig lined up after this one, and I am not extending. He is in for a shock.

[oversteer]

I discovered (perhaps a little to conveniently) mine is making less than 7%

[Wanderer]

I try not to worry about it, but I know mine's 20%. Only know 'cos the client ask me to raise the PO for my own extension

Give yourself pay rise out of the agency's margin then!

[Project Monkey]

I try not to worry about it, but I know mine's 20%. Only know 'cos the client ask me to raise the PO for my own extension

[Wanderer]

My agent takes 15%.

I've just negotiated after a 1 year contract, a further 6 months with the client with an increase of £25 per day so I am going to look to get them to pass on some of there fee to me going forward - no idea if they will go for it but that seems reasonable?

Yeah, they can come down to 7% and give you some more, no problems.

[SneakySimon]

Reasonable

My agent takes 15%.

I've just negotiated after a 1 year contract, a further 6 months with the client with an increase of £25 per day so I am going to look to get them to pass on some of there fee to me going forward - no idea if they will go for it but that seems reasonable?

[The Agents View]

Present agency is on 8%. It was 10% but I nicked a few extra quid on the last renewal.

For me 8-15% is the range. Less than 8, the agency must have a lot of contractors on site, more than 15% agency is trying it on. More than 20%

That's fair. In an ideal world, we all want to be making more money, but sometimes we have to share the pain of this Bulltulip economy. I would agree to 15% for a brand new client without too much of a fight - with guarantees of further business, I can probably be pushed as well.

The only exception to that, is where the area worked within is extremely niche - then you can probably justify a higher margin - that doesn't tend to hold true in the IT world though.

I'm simply going to ignore the view of the internal person - DA's points are all the things I wanted to say, but held back on.

[MarillionFan]

Present agency is on 8%. It was 10% but I nicked a few extra quid on the last renewal.

For me 8-15% is the range. Less than 8, the agency must have a lot of contractors on site, more than 15% agency is trying it on. More than 20%

[vjmac108]

Am not a recruiter. Im the CAO for Equity Technology at a European IB. You probably deal with the internal recruitment teams of whom I'm a client of.

My issue isn't with you - you actually know what you're talking about - its the other idiot.

Let us get this right. You work for a "city institution" because you cannot hack it in the agency world. You like your monopoly and you enjoy the power over the agencies that supply to your "city institution" - better known as a Casino-. No business calculates profits (net or gross) on mark ups. Just wander round your analysts and traders and ask them if they value companies on mark ups. Or would that involve you getting some understanding of business?