Recruitment agency charges

S

steve1234

Registered User
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In general what do recruitment agencies charge companies for contractors.
Ive just seen today what my agency was charging the company im working for and its about 30% of my daily rate. I remember the agent making it clear that my rate is strictly confidental between the agency and I but now i know the reason why. i know my rate was on the low side but i thought that the company was paying a low rate also. I think im being shafted and so is the company im working for.
 
30% is cheap, I've seen agencies try to charge up to 60-70% in the past.

Bear in mid that out of that 30%, the agency is probably paying employers PRSI as well.
 
There not paying any prsi for me as i pay my own. Its about 148 a day there getting just for one person that doesent sound cheap to me - thats excluding vat aswell. i guess i should shut up about it i might put my contract in jepordy if i say anything.
 
Agency may be waiting a long time to get their payments and take the risk of not getting them at all
 
But the OP is not employed by the Agency - They merely charge finders fees to the company by placing the contractor there - The contract is possibly then directly between the company and the contractor with the recruiter a 3rd party.

OP can you calrify the nature of the contract? Do you submit timesheets etc to the agency or is eveything between you and the company? Do you bill the company directly or is this handled by your agency?

How long is your contract for. If a fixed term and up for renewal talk direct to the company and get the next contract direct between you and the comapny. there is no need to involve the agency. If they are paying 30% more at the moment they may be willing to spilt this amount and pay you an extra 10-15% if the agency is removed.
 
The contract is with the agency - i send timesheets and invoice the agency directly. Its only a 3 month contract.
 
I've dealt with agencies and 30% is on the high side. I've paid 15% to 25% on top of basic pay. That said it's between the agency and the employer. You may think you are being shafted but the agency got you a job and the employer got an employee.
 
Steve1234, if you are getting on well in the company you are in then test the waters to see if they wod hire you as a temp directly at the end of your contract with the agency, if they want to keep you more than they want to keep that agency it may just work, e.g. a few years ago in the company I work for we hired a contractor and a few months later the agency came saying they had miscaulated and needed to charge us more than was originally agreed, we told them they could not do that, we had a contract, thinking that if they valued our business (which was and is sizeable) they would get over it, and what did they do, they docked the contractors pay for their mistake!! End result, we sacked the agency, never used them again, and gave the contractor a permanent full time role.
 
Steve1234 i'm presuming your an hourly paid contractor and the agent has applied a margin, you have seen their invoice into the client with a 30% margin.

Sounds a bit expensive in teh current environment but 15-20 % would be the norm anyway. thing is that you must have been happy with the agency offer to accpept the role although I know its frustrating to see a mark up of 30% that you prob think should be yours.

my adviceis that you cant so much now but if the client wants to renew after 3 months you are well preapared for a rate increase of 10-12% and you can be fairly sure that you will get it as the agency will still make approx 15-20%.

good luck
 
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