Contractors Bashing Recruitment Agencies
An IT agent posted this, about contractors bashing recruitment agencies, as comments after one of our articles.
Agents do not take money from contractors. Agents get paid by the client, as do contractors.
We all get paid by the same party, The Client.
If you are not happy with the rate being offered then tell the agent that you are not happy with the rate being offered and explain why.
You would not go into a shop to buy a jumper then go up to the cash desk and say ‘What Margin to you charge on this jumper? I am not happy with the price‘.
Client Pays Money
You might go to the cash desk and say ‘˜I can find this jumper next door £5 cheaper will you give me the same price?‘ or ‘This jumper has some damage on it will you give me a discount‘ or ‘˜Will you give me a discount for cash‘
Speak to your agent about what rate you want, not about his margin. That is up to him and/or the client.
The client pays and should be negating on the clients charge rate which includes the agents margin.
As a contractor you do not have to accept anything if you do not want to and believe you can better elsewhere.
IT Contractor Comment
You make some good points. However, there is absolutely no reason why an agency should not reveal their margins. Some of them do.
They don’t reveal them, obviously, because they don’t want contractors to know.
With most agencies, the margins are fine.
However, it does happen, sometimes, often with first time contractors, that the agency margin is ourageous.
Who can defend taking more than 50% of what a client pays for a contractor? I’ve even heard of an agency taking 70%.
IT Contractors ask the rate to make sure that something like this is not happening.
Agencies who won’t tell them their margin make contractors suspicious.
That’s why it is best to tell them up front.
Then everyone can just relax.
Ad – Contractor Services
If you do need an umbrella company you could try one of the following:-
All-inclusive contractor accountancy service. Best value in the UK for a personal service, no tie in periods and an accounting package tailored to you – Aardvark Accounting.
For Mortgages specially designed for contractors try Specialist Contractor Mortgages.
Have a look at our Contractor Job Search section.