What is the average cut agencies take?

[DG]

Does anyone know what the average cut is employment agencies take for finding permenant staff for a company?

I once heard it was as much as 30%

So if you were iring someone who's getting £30,000 the agency would get a £6,000 commision?

Is this right?

I do remember several years ago a girl in our office was employed as a temp through an agency and then the boss found out the agency was getting more money per hour then the girl who was doing the work was getting.. They were paying the agency something like £9 per hour and the girl only got like £4 of that. The boss chucked a mental at the agency and gave them a piece of his mind and she ended up gettin a bigger cut in the end.

[BeckyBoo]

Ive seen jobs advertised in our temping agency for £7/£9 per hour so if what you say is correct then companies are paying a fortune for staff.

[morrocan roll]

Originally posted by BeckyBoo
Ive seen jobs advertised in our temping agency for £7/£9 per hour so if what you say is correct then companies are paying a fortune for staff. they are paying a fortune but it enables them to escape giving the workers any rights.

[BeckyBoo]

Originally posted by morrocan roll
they are paying a fortune but it enables them to escape giving the workers any rights.

True, but is that any wonder why big companies go bust ?

[morrocan roll]

Originally posted by BeckyBoo
True, but is that any wonder why big companies go bust ? it's actualy how most of them thrive now. no holiday pay no sickness pay no pension etc. they save millions. lay you off without any warning.

[BeckyBoo]

Originally posted by morrocan roll
it's actualy how most of them thrive now. no holiday pay no sickness pay no pension etc. they save millions. lay you off without any warning.

If you work it out though and lets assume they pay minimun wage and holidays etc then wouldnt they save more ? There again would they get the staff just paying minimum wage, maybe people would not be as keen to work for £4.50 an hour.

I didnt realise they didnt get no holiday pay or anything though. Never really looked into it.

[morrocan roll]

my oldest son works for agencies by choice. he'll do 18hrs a day for a couple of months! then leave it for a couple of months. he can walk in and out of jobs that way so he can spend a couple of months and his hard earned money on an old house he's being doing up. it's now on the market and with prices going the way they have he stands to make some very good money. he's grafted for it though.

[Man Of Kent]

It depends on the agency, but they don't get a cut from the employee, they get paid a premium by the employer.

Basically I will pay an agency £30, but they only pay their employee £20...

Agency staff are usually short term fillers, rather than long term and so you expect to pay a higher rate than you would your own staff.

[Char_Baby]

when i was temping i got the advertised rate per hour, i recieved every penny

the company must have paid the agency extra on top of that

[VinylVicky]

When I worked for BTOpenworld (BTInternet back then) they paid the agency £11 ph and we got paid £6.25. There was about 1000 employees, at 37.5 hours a week, 24 hours a day, imagine the profit!!

[Kermit]

Originally posted by Char_Baby
when i was temping i got the advertised rate per hour, i recieved every penny

But whose advertised rate?

[DG]

Originally posted by VinylVicky
When I worked for BTOpenworld (BTInternet back then) they paid the agency £11 ph and we got paid £6.25. There was about 1000 employees, at 37.5 hours a week, 24 hours a day, imagine the profit!!

If the agency was your actual employer then they'd have to match the same national insurance you paid so guess that would come out of the difference, But they'd still be getting a lot of money for a once off deal putting you in contact with BT.

I asked a friend who works for an IT agency and he reckons 15% of a person's first year wages is what they charge.

So like if they hook up a £40,000 per year guy that's £6,000 commission.

[Whowhere]

You'll find that the wage you get paid by an Agency isnt much less than you'd be paid by the company itself.
I worked for Kelly's, for O2 on £4.50 an hour. I got taken on by O2 and my wage went up to a whopping £5.40 an hour.
I'd have been pissed (and happy) if there had been a bigger jump.
Now I'm on a lovely £7.90 an hour.

[lipsy]

Originally posted by morrocan roll
it's actualy how most of them thrive now. no holiday pay no sickness pay no pension etc. they save millions. lay you off without any warning.

i worked over the summer via a temp agency. i got holiday pay- isn't it by law now? it was calculated by earning a days holiday by so many days that you work.

i was treated (along with the other temps) quite differently to the permanent employees. i used to pull sickies and be late quite regularly and although i did get some warnings if i had been permanent staff i would have been fired.

the pay did vary throughout the staff though, including the permanent ones. a girl who was working through a different agency got an extra 40pence per hour than me. i freaked when i found out and a woman from my agency came into see me about it but nothing happened. considering i'd only had shop experience before, im pretty sure i'll be able to get more money next time i work though.

[Char_Baby]

Originally posted by Kermit
But whose advertised rate?

it was the agency who put the ad in the paper, so they must have been getting extra