What do you think will happen to agencies next April?

[czakky]

There are always going to be temps, but they do not really need to follow the "contractor" route, they will have to go down the PAYE route where they are employed by the agency

However, though the PAYE route at £12 an hour, a client is charged £17.09 an hour with me making a £2 margin, with an umbrella route, they are charged £14, with me making a £2 margin - so these changes just end up costing the end client more, with more paperwork on both sides.

So to make the £14 charge rate, which is what a lot of my end clients want for temp help desk, though PAYE I would pay a candidate £9.50. A nice pay cut, and the less you are paid, the more you will feel the effect of a pay cut.

My god I hate these changes.

[SimonMac]

However, though the PAYE route at £12 an hour, a client is charged £17.09 an hour with me making a £2 margin, with an umbrella route, they are charged £14, with me making a £2 margin - so these changes just end up costing the end client more, with more paperwork on both sides.

So to make the £14 charge rate, which is what a lot of my end clients want for temp help desk, though PAYE I would pay a candidate £9.50. A nice pay cut, and the less you are paid, the more you will feel the effect of a pay cut.

My god I hate these changes.

I assume the £12 a hour the temp gets how much goes in their pocket after all deductions including both sides of NI

[diseasex]

There are always going to be temps, but they do not really need to follow the "contractor" route, they will have to go down the PAYE route where they are employed by the agency

1. Competition will decrease (that's pretty sure as less contractors will be willing to travel / some will go permie instead of taking tax hit)
2. rates may increase due to above, and general shortage of skilled IT
3. Agencies wont change ..

Either way , good times coming

[eek]

1. Competition will decrease (that's pretty sure as less contractors will be willing to travel / some will go permie instead of taking tax hit)
2. offshoring and tier 2 may increase due to above, and general shortage of skilled IT
3. Agencies wont change ..

Either way , bad times coming

ftfy (eek in cynical mode)..

[czakky]

I assume the £12 a hour the temp gets how much goes in their pocket after all deductions including both sides of NI

How the temp manages this £12 is up to them - this is what is paid either to a limited Co that they run, or to a brolly that will then make deductions, I let my guys use any route they choose, its none of my business.

What I was trying to get at, is that to maintain current levels of pay, I would have to charge clients more, which at junior level, would not work.

I guess another way to see it, it to ask why on earth use a recruiter to fill jobs like these? I can throw a ball on Grainger Street and hit someone who can do these roles, the most sensible change would be for companies HR to get it together, and stop relying on recruiters to fill basic jobs....although this would not help me one bit!

[diseasex]

ftfy (eek in cynical mode)..

If offshorers wont increase their IQ somehow , there will always be demand for smart local people..
And by the time they increase their intelligence / education / skills (few generations at least) they wont be that competitive at all, just as china slowly gets expensive
Good times coming

[BrilloPad]

I guess another way to see it, it to ask why on earth use a recruiter to fill jobs like these? I can throw a ball on Grainger Street and hit someone who can do these roles, the most sensible change would be for companies HR to get it together, and stop relying on recruiters to fill basic jobs....although this would not help me one bit!

Its not really the recruiting part that is at issue. Its having an intermediary so that contractors cannot claim employee rights.

[LondonManc]

I can't see the Office Angels end of the market operating in the same way as the SME end and it shouldn't. The fact that it does is one of the things that have led to the Guardians of Old Money taking this blunderbus approach. HMG should give the interim employment industry a year or two to sort itself out based on operating guidelines and see where the land lies after that.

Mind you, with the consultancy firms extracting the urine with expenses, we're not going to be fighting on a level playing field any time soon.

[czakky]

Its not really the recruiting part that is at issue. Its having an intermediary so that contractors cannot claim employee rights.

A HR bod could quite easily engage contractors and then put them through an umbrella, which would save any fee paid to me, and would allow the expenses thing to be negated, as a saving in fee could be passed as a rate raise to the contractor. They just choose not to, and instead they...well, I often struggle to work out what some of them do!

[eek]

How the temp manages this £12 is up to them - this is what is paid either to a limited Co that they run, or to a brolly that will then make deductions, I let my guys use any route they choose, its none of my business.

What I was trying to get at, is that to maintain current levels of pay, I would have to charge clients more, which at junior level, would not work.

I guess another way to see it, it to ask why on earth use a recruiter to fill jobs like these? I can throw a ball on Grainger Street and hit someone who can do these roles, the most sensible change would be for companies HR to get it together, and stop relying on recruiters to fill basic jobs....although this would not help me one bit!

Grainger Street or Clayton Street. (for those that don't know Newcastle that Grainger Street sets the requirement barrier fairly low, Clayton street would imply anyone with a pulse).