ATJT:
Conor:
JeffA:
How much do the agency get compared to the rate they pay you? The last agency I was at paid me £11.50 an hour while they got £23 an hour.
Don’t forget that on top of the £11.50 they pay you they’ve got 12.07% for your holiday pay, 3% for employers workplace contribution, 13% employers NI and 0.4% apprenticeship levy to pay before they see a profit. I doubt very much that if you were on £11.50 they were charging £23. Might be somewhere close to that if it included VAT but typical agency profit is around £1.50-£2/hr ex-VAT above your rate plus those other expenses of employment they have to pay.
Nail on head. I’m sure there are occasions where an agency might get away with charging £23 and paying half that but by and large agency margins are extremely slim. A “big” agency like Staffline or Pertemps will be making less than £1 per hour PAYE to supply someone like DHL or Wincanton after all the costs you’ve correctly broken down above. This is why agencies would always push the Ltd Co/Umbrella route as the profit is extremely simple, literally just the gap between what they charge and pay.
What surprises me is the sheer number of people that still settle for such low agency rates…
I reckon a lot of agencies start by offering low, if they get a taker for that job - is stays low.
If they don’t, and start having to pay “subbing” fees to other agencies to supply their drivers, third-party and all - then the rate they’d be prepared to pay in-house would surely rise slowly over time…?
I recall being constantly phoned by agencies I had never signed up with - offering me work that had a “bonus” attached, rather than a higher hourly rate that might have actually motivated me to take it…
Even when offered such a higher hourly rate instead though, I’d ask for an email confirming the booking, and hourly rate attached - only to then never hear from them again, of course…
The most common work offered, was Iceland, Coop, and CocaCola work - all on the wrong side of the river from me, and usually with something like a £12ph rate with £100 bonus for completing your first shift…
I fell for that just the one time, back in 2012 when I took a shift offered @ £12ph out of Surrey Quays depot for Boots, did one shift on “Tuition” and a second shift by myself - only to get paid for one of those shifts, and at £7.50ph at that… “You didn’t get it in writing” I got told by the chuckling agency gaffer, who was ex-military if I recall…
Don’t trust ads that say “Negotiable”.
Same applies to “We Buy Any Car” where their “Offer” suddenly drops by £200 when you turn up, having accepted the offer online they made… Even ticking all the “worst” boxes, - apparently doesn’t give a valuation as low as it can possibly go…
Just another Brudder outfit, alas…