Reply to: Switching recruitment agency while working for same client

[Wanderer]

In my opinion you are looking at it wrong. You should be happy that you got exactly what you wanted, what the consultamcy got is neither her nor there.

That's one way to look at it.

The other view is that a good business person keeps an eye on how much the others in the business deal are making and looks for opportunities to make their business more profitable. Always beware of the middle man, how much are they taking out of the deal? Could you cut them out and still do business? Can you get them to reduce their margin to increase your profits?

Knowledge is power, always try to find out how much is being paid by the client and make sure you are getting your piece of the action.

[JamJarST]

I got well suckered on my very first contract. Although I worked through a 'consultancy' rather than an agency (which just means they charge the client more), they recruited me, asked how much I wanted, I picked a number and I thought it was decent, tripled my take home from permie land etc and only towards the end of the contract found out the 'consultancy' was earning more from me per day than I was....


Live and learn.

In my opinion you are looking at it wrong. You should be happy that you got exactly what you wanted, what the consultamcy got is neither her nor there.

[Taita]

Switching agency while at same client

I think I am going to wait for my contract to finish and then negotiate on rate. I think being patient for the time being is the right thing to do. As you mentioned if I start negotiating in the middle of the contract it can make me look very unprofessionanl in client's eye. All thanks a lot for answers. It helped a lot!
By the way rate is devided 70/30 and I am somewhere in the middle of Monkey and Specialist..

Good decision. Whilst the client may be sympathetic he is probably more likely to be pretending to care. Most clients I have worked for get on well with their contractors until they start bellyaching about their rate, the agent's commission, IR35 and so on. Then the client can turn because they do not really care as the contractor is usually (on the face of things) better paid than an equivalent permie who does not have any opportunity to mitigate his tax bill etc.

[andyc2000]

I got well suckered on my very first contract. Although I worked through a 'consultancy' rather than an agency (which just means they charge the client more), they recruited me, asked how much I wanted, I picked a number and I thought it was decent, tripled my take home from permie land etc and only towards the end of the contract found out the 'consultancy' was earning more from me per day than I was....


Live and learn.

[SimonMac]

I am somewhere in the middle of Monkey and Specialist..

that would be AND then?!

[The Agents View]

Making some assumptions then....

Agency is currently making £200 per day off of you?

You're right to be aggrieved at that IMO - Up to £100 I can understand. £150 for a really senior, really really special sales job by the agent, but I'd be at amiss to understand how an agent can justify £200 per day of margin.

You're right. Wait until renewal. When you get there, be ready to walk if you don't get what you want. I'd suggest leaving them with a £100 per day margin (still healthy), leaving you with a £100 raise, or the client with £100 less cost - which could be the difference between extension and no extension.

How on EARTH did you manage to undervalue your services that much?? :\

[jmo21]

A Specialist Monkey then?

Or a Monkey Specialist perhaps?

[northernladuk]

I think I am going to wait for my contract to finish and then negotiate on rate. I think being patient for the time being is the right thing to do. As you mentioned if I start negotiating in the middle of the contract it can make me look very unprofessionanl in client's eye. All thanks a lot for answers. It helped a lot!
By the way rate is devided 70/30 and I am somewhere in the middle of Monkey and Specialist..

A Specialist Monkey then?

[Itbee]

I think I am going to wait for my contract to finish and then negotiate on rate. I think being patient for the time being is the right thing to do. As you mentioned if I start negotiating in the middle of the contract it can make me look very unprofessionanl in client's eye. All thanks a lot for answers. It helped a lot!
By the way rate is devided 70/30 and I am somewhere in the middle of Monkey and Specialist..

[The Agents View]

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

So, of the TOTAL rate the client pays, you get 70%?

Or, they add 30% to your rate?

These are fundamentally different things, and are the difference between a reasonable agreement, and something that takes the mick. If the rate is divided 70/30, that's a 30% margin. If it's 30% markup - that's about 22-23% margin (off the top of my head)

You also don't state your daily rate. If you're a £250 monkey, then 30% markup, is roughly right - £75 per day. If you're an £800 per day specialist, then yes, you can feel aggrieved at a 30% markup or margin I suspect.

[northernladuk]

Unfortunately this is what happens when you find information out that isn't really your business (cue argument). At the end of the day you have to be content with the negotiation you did and that you accepted a rate you were happy with. You can't let it eat you up when you find out your have lost out else it will just end in tears.

Just knowing one number can turn a decent contract that will run smoothly in to a screaming mess that makes you miserable and depressed.

Just try and be content with the rate that you accepted and grin and bear it. The other option would be to take a different tact and admit to yourself if it is actually your fault the agent is taking this much as you didn't negotiate properly, praise the agent for his clever play of the situation and just plot your revenge in a few months

Either way, act professionaly, don't make yourself look a dick infront of the client by mithering him about it and look forward to a fat rise in a few months.

Post your boomed on here and we will give you a cheer.

[Itbee]

Thanks for very useful replies.

I want to wait for end of my contract for negotiation but problem is I have to wait for couple of months for this and I am getting impatient...

[northernladuk]

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

And you can't see the answer here? You have position power, both you and client can squeeze the agent. He does work on behalf of the client and relies on you for his income so really he is on the back foot in this situation and you need to use it.

Not much you can do right now but come renewal you tell him you want a rate that puts him down to 10% or you walk. Not only will he lose ALL of his revenue for a short time if you walk he is going to incurr the wrath of the client for being greedy and losing contractors due to that greed. The agent, unless he really is a complete spanner, does not have a leg to stand on and really 10% is an acceptable rate. Not the gift horse he had but perfectly acceptable.

Client happy, you are happy, agent will (rather begrudgingly) be happy. Sorted.

The only thing I would warn against here is considering the client as an ally. He isn't. He is your client. You should not discuss your and the agents rate with him and should not take his dissatisfaction as any sign he supports you.

[Itbee]

Thanks for replies.
Problem is commision agency is keeping. They are keeping more than 30% while other agencies are advertising same job for 10% commision. Client is also not happy with the agency as they are keeping lots of commision.

[northernladuk]

Changing LTD's won't help here either. Just because the name on the contract is different the working practices are exactly the same i.e. you (same person) are on clients site (same client) doing the same work. The spirit of the law will be upheld regardless of different wording.

From my experience as well even if the client is pissed off you need to tread very carefully. It is highly unlikely to go legal but the old and new agent can fight with the client to the extent it puts your position in jeapordy. I do believe I didn't get a gig because two agents were fighting and it was easier for the client to wash their hands of it and start again. Different situation but highlights the issues of fighting with agents.