IT Recruitment Agencies - Info Required

Discussion in 'General Chat' started by Paul_HDLover, Apr 25, 2007.

  1. Paul_HDLover

    Paul_HDLover
    Active Member

    Joined:
    Jan 22, 2007
    Messages:
    1,474
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    66
    Location:
    Nowhere
    Ratings:
    +164
    Hi, im looking for some insider info.

    If say, Im looking for a job - an IT contract and an agency approaches me with a suitable position. I get interviewed for the job, and subsequently am accepted on a daily rate of £300, how much will the agency receive?

    I imagine they would get some kind of 'win' payment, plus a slice of the daily rate?

    Anyone able to break this down for me. Its something thats always interested me and now that Im pig sick of the self interest of such agencies, I would actually like to know how it all works.
     
  2. Mep

    Mep
    Well-known Member

    Joined:
    Dec 25, 2004
    Messages:
    9,712
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    106
    Location:
    Surrey
    Ratings:
    +484
    We only recruit full time developers but in those cases agancies normally take 20% or more of year one salary.
     
  3. JUS

    JUS
    Well-known Member

    Joined:
    Jan 21, 2003
    Messages:
    3,434
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    106
    Location:
    Plute
    Ratings:
    +322
    For contractors they'll be on a slice of the invoice. The amount depends on the agency and the situation. I have never paid a win fee for a contractor.

    I don't know what the percentage is because the agency hides their fee on the weekly invoices. From the contractors I've talked to in the past it's varied from 10-25%...as long as you're happy that's all that counts.

    If you work for a consultancy that's different. They're likely to charge you out at £1k a day and give you £300 :D
     
  4. Paul_HDLover

    Paul_HDLover
    Active Member

    Joined:
    Jan 22, 2007
    Messages:
    1,474
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    66
    Location:
    Nowhere
    Ratings:
    +164
    This was my guess too. This is why the agency usually negotiates a daily rate for the job. For instance, they have agreed with the company that the total they will pay is £375 per day, its the agency's job to then get someone for as much off this as possible i.e £275 per day to allow them to skim £100 per day off the top.

    They are parasites. I wouldnt mind it if they were actually professionals in the line they are recruiting, perhaps if this were the case, so many poor contractors wouldnt get as far past the line as they do.
     
  5. FaxFan2002

    FaxFan2002
    Well-known Member

    Joined:
    Jan 25, 2003
    Messages:
    2,528
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    83
    Location:
    Andover
    Ratings:
    +182
    I asked the same question if you are offered and accept 300 a day the agency have already taken a slice or a finders fee. The general rule (having asked a lot of agencies) is the rate they quote you is the rate you get.
     
  6. neilmcl

    neilmcl
    Well-known Member

    Joined:
    Oct 29, 2004
    Messages:
    6,238
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    103
    Location:
    Nottingham
    Ratings:
    +292
    The rate you've agreed is the rate you invoice plus VAT. Agencies then add their slice on top, which can be anything from 10% to 20%. As someone said earlier, as long as you're happy with what you're gettiing then it doesn't really matter what the agencies get themselves. Bear in mind that you do have a legal right to get your agency to disclose their percentage if you're so inclined, personally, and I've been contracting for over 15 years, I couldn't care less.
     
  7. avinitski

    avinitski
    Well-known Member

    Joined:
    Apr 22, 2005
    Messages:
    3,319
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +216
    Recruitment Agencies rake the money in, i work for a software company that provides a specialist recruitment software package, it matches candidates to vacancies and vice versa and keeps records on temp contracts, time sheets etc. With this job i get to see how much they charge their clients and how much the candidate gets, and i can assure you generally they get a good chunk!

    Also ive never seen a recruitment agency take a placement fee for a contract, generally a placement fee is for perm placements. Our software doesnt even has options for this when placing contracts, im sure if this was the case it would be in our software.
     

Share This Page

Loading...