Employment agencies...

[@MacPhlea]

How do these make their money? Do companies say how much they are prepared to pay the agency and then it is down to the agency to screw down the salary offered to the prospective employee to increase their margin?

For example my other half has been offered a temp to perm position (3 month probation) and they have come back and offered the minimum expected for the role salary range whereas she has 20 years experience and was specifically asked for by the company as she had been for a previous interview for another role with them... We suspect the agency is trying to screw us over but want to know how they get there commission... Any thoughts would be appreciated

[Fred Elliot]

Usually its a % of the gross annual salary offered mate

In my line of business it can be anything up to 18%

[Peter Venkman]

When I was after programming staff when I worked in Cirencester we approached a local agency for one temp to perm programmer they asked for £18k (this was 12 years ago) and when we actually employed the lad he was being paid £12k and if we employed him after the 3 months then we had to pay a fee to them of 6 months annual salary (£9k).

We stopped using an agency after that episode.

[stfctownenda]

I work in a recruitment agency, a mark up is included in every temps salary, this is to include paying the temp for holidays, putting them on your payroll and also so the agency makes a profit.  How long is she temping for? If she is working over 12 weeks the new AWR regulations will kick in after 12 weeks when the company will have to give her equal salary, benefits and holidays as anyone permanent equivalent who is doing the same job.

[@MacPhlea]

She's been offered a permanent position but with a probationary period in between (3 months).  She was 'head hunted' but clearly they are lowering the wage to allow for agency fees...  If she was to refuse the job on grounds of salary could she then go direct to the company and talk to them?

[joteddyred]

She's been offered a permanent position but with a probationary period in between (3 months).  She was 'head hunted' but clearly they are lowering the wage to allow for agency fees...  If she was to refuse the job on grounds of salary could she then go direct to the company and talk to them?

I assume she's being paid a salary for the 3 months probationary period, not an hourly rate?  If so, the agency will take a percentage of the annual salary.  The agencies we work with vary in the percentage they charge. 

The higher the salary, the more money the agency would get, so it would seem that it's the company the job is with that have set the salary. 

When we offer a job role, we always go in at the minimum of the pay range to allow for negotiation if the candidate wants more.  Your wife needs to be go back to the agency and ask for more money.  I'd be surprised if the company won't move.

[Fred Elliot]

Just started a new job which I was head hunted for through an agency.

The way the offer to me was constructed, was that of a basic salary of less than I wanted for the initial 3 months probationary period.

After this my salary would increase for the remainder of my employment to just over what I was asking for.

This enabled my new employer to reduce the outlay paid to the agency

[@MacPhlea]

I assume she's being paid a salary for the 3 months probationary period, not an hourly rate?  If so, the agency will take a percentage of the annual salary.  The agencies we work with vary in the percentage they charge. 

The higher the salary, the more money the agency would get, so it would seem that it's the company the job is with that have set the salary. 

When we offer a job role, we always go in at the minimum of the pay range to allow for negotiation if the candidate wants more.  Your wife needs to be go back to the agency and ask for more money.  I'd be surprised if the company won't move.

she's on an hourly rate...

[stfctownenda]

She can't refuse the offer, go away and speak to the company direct as they will have signed terms and conditions in place that as they made the introduction they would be due a fee. 

She would not of known about the position unless it was from the agency so the company would not be able to get around it as there would be a papertrail of emails, recordings of calls and other stuff where the agency could prove she was put forward by them so they did all the work so the company would have to pay them a fee.

So is she leaving a permanent role for a temp-perm role? bit of risky business if she is not succesful after the first 3 months.  If she is on the hourly rate then the agency will be paid a chunk on top of the hour rate to cover holidays, payroll and benefits + profit.  Once she goes perm the company will pay the agency a fee and then you will probably find her salary increases to a decent level.