AndyHeadworth
Moderator
Registered: 09/09/08
Posts: 28
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Reply with quote | #1 |
Last month I came across the largest agency margin that I have ever seen in 20 years of recruitment. It was for an IT contractor and it was a massive 55% margin (not markup)!!! I won't embarrass the agency completely but I will give you a clue in the style of charades.....two words, the first is Computer!!
What really wasn't right about this one was the fact that the contractor had been on site for 6 months before he and the client found out! So presumably the client was happy - well until he found out about the level of margin anyway!!
So as a client, do you actually care about the level of margin for contractors? If you get a contractor on site for a set hourly/daily/weekly rate, for a rate that agree with, should you worry what the individual actually gets paid? (I think you should but that's for another post!!)
So what is a fair figure for an agency to make? 10, 15, 20 or even 25%? What are you paying at your company?
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Andy Headworth
Sirona Consulting Ltd
http://www.sironaconsulting.com
01903 206249
Check out my blog - http://blog.sironaconsulting.com
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tomherron
Registered: 09/16/08
Posts: 4
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Reply with quote | #2 |
I agree 55% is very expensive! However depending on the individual circumstances of that particular case, as to go behind an agencies back will also result in losing out!!
But personally I would always ensure fees are outlined prior to anything so all parties know where they stand and it also stops the candidate from being held up in a potential conflict...
Saying that I would never pay more than 20% for a position no matter how senior as there is enough agencies out there for companies being able to negotiate better rates or walk away, but for simple administrative positions I wouldn't ever go more then 14%.
This is best for me as being an Internal Recruitment Manager I would still conduct all the interviews, matching, offer letters, reference requests so effectively would only be paying for the CV.
Saying that in 50 positions I have used an agency twice, both being at12% fee
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tomherron
Registered: 09/16/08
Posts: 4
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Reply with quote | #3 |
I've also just realised it was about temporary staff, not permanent staff but still...
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AndyHeadworth
Moderator
Registered: 09/09/08
Posts: 28
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lara84
Registered: 09/26/08
Posts: 1
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Reply with quote | #5 |
Hi the consultant agencies are doing great in the recruitment process they charging very high charges but they doing one right thing they get from companies if one eligible person is placed certain charge is applicable to that agency .
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Lara
Job Openings
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AndyHeadworth
Moderator
Registered: 09/09/08
Posts: 28
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