Regular reader Numpty left this about honest recruiters as Comments after one of our articles and is a personal view. We thought it deserved a wider audience.
“Why can‘t agents just be honest with you?”
The answer to your question is they are in the telesales game.
As a result volume sales (quick and nasty) are the ones that make companies the most money quickly.
So, honesty is a time waster as far as they are concerned, as being honest takes more time – time they do not have. Honest agents can’t win ths battle.
Recruiters Controlling Market Share
They then in turn use this money to control the market share (through exclusive agreements and dominating advertising).
Once in this position they make the real profits. After a while it becomes the industry standard to operate this way, as these are the companies that make the most money. Everyone then follows their sure fire approach.
While we may not like it or the clients, you have to say for the agencies it has worked a treat. And it is still working for them as they continue to gain a firm control of this market.
You could argue the long-term quality to everyone view, but the fact is they have defeated that view and won. The fast buck approach, used by dishonest recruiters, has won through and that’s a fact.
However there is another untried approach whereby contractors could form together a group that represents their interests (like IPSE for example).
This group could then act as an admin company and work together with the major clients (large volume, banks, consultancies, telecomm, FTSE 100).
This contractor group company would then be controlled and funded (small subscriptions) by contractors and thus would represent our interests.
Enforcing such things as max 4% margins, real contracts, IR35 unfriendly, no anti-direct clauses and so on.
Contractors Group IPSE Not Interested
So, far no one has bothered to attempt this approach properly. Thus we do not know if it would ever work.
IPSE do not seem interested in doing this, despite the fact that they are well established and have many contacts to make this work easily. One now has to question whether they really do represent the best interests of contractors.
You see if IPSE ran this sort of operation and controlled the type of contracts that major clients signed up to, they could make sure IR35 was never an issue (by nullifying it at the contract level) and the government would be forced to drop it (as there would be no one to claim it from).
So, they would at an instant solve their IR35 issue and also secure the future of the group possibly forever.
In the meantime the agencies have won outright, they even run outsourcing operations now, whereby they may have say 100 contractors at a bank (as they have enforced exclusive rights on all that banks contracts) and will then turn around to the bank and say ‘we can give you 200 Indians in our Mumbai office for the same price’.
Recruiters Not Your Friends
And of course they have worked it out that they will get even more profits this way and be in even MORE control than before.
It would be good if there were more honest recruiters. However, agencies are not only not your friends, their now your competitors! And you are funding them as well!
Welcome to the FREE markets, FREE to have yourself constantly raped by them!