Do recruitment agencies take a cut?

[Vita]

Pardon my ignorance, but do recruitment agencies take a cut from your pay if you get the job with one of their clients? Is this a one off or, for as long as you work at the said place?

Does anybody know how much they take? Or does it vary from salary to salary?

 

[shifty_uk]

They take a cut from the company that hires you, it wont directly influence your salary and the cut doesn't come out of your pay.

As far as I'm aware.

 

[Maccapacca]

Yes 15 - 30% dependant on industry

There's loads of T&C's if you are agency then they take you on even if it's months after you leave

 

[PMKeates]

It's usually something like 10% for the 1st year.

Yes 15 - 30% dependant on industry

For skilled it can be this, or higher.

It could almost be anything, really, OP.

 

[Ahleckz]

But it isn't from your pay.

Company A approaches a recruitment agency. They want Position B filled and they'll pay the agency £10 ph for the person.
Recruitment Agency C approaches Person D and offers them the job for £7ph and pocket the difference.
If the company then went to make the person staff, then they will have to buy you off the agency.

At least, that's how it worked for the agency I worked in.

 

[albert]

Agency workers at Nissan UK are on 30% less wages than everyone else. The agency takes a huge cut.

 

[CRUMPLYPORK]

I currently have an agency driver working for me, we pay the agency £17 an hour and the driver gets £10 an hour, they also make their money by charging a finders fee if we wished to employ him. I think it's around 10 - 15% of the final salary of the e employee,

 

[Castiel]

Pardon my ignorance, but do recruitment agencies take a cut from your pay if you get the job with one of their clients? Is this a one off or, for as long as you work at the said place?

Does anybody know how much they take? Or does it vary from salary to salary?

The client pays a percentage of what your Salary is to the Agency as well as a recruitment fee...this is a transaction between the client and the Agency, it doesn't affect your agreed Salary, therefore you do not pay directly,the client does.

In the case of temping Agencies, the agency agrees a rate with the employee and charges the client that rate plus a percentage and a recruitment fee....again it doesn't affect the actual amount the employee is paid.

In some cases agency workers (those supplied on temporary contracts, not those recruited to full time permanent positions) can earn more or less than a full time employee of the company the agency worker is sent to.

Effectively if your salary is £10k a year, you will still recieve £10k a year...the client will simply pay the agency £1.5-3k plus a recruitment fee for a permanent position or in the case of hourly rates if you earn £10 an hour, you still recieve £10 an hour, but the cost to the client to the agency woukd be £13 an hour....

 

[Vita]

The client pays a percentage of what your Salary is to the Agency as well as a recruitment fee...this is a transaction between the client and the Agency, it doesn't affect your agreed Salary, therefore you do not pay directly,the client does.

In the case of temping Agencies, the agency agrees a rate with the employee and charges the client that rate plus a percentage and a recruitment fee....again it doesn't affect the actual amount the employee is paid.

In some cases agency workers (those supplied on temporary contracts, not those recruited to full time permanent positions) can earn more or less than a full time employee of the company the agency worker is sent to.

Thanks Castiel. Just what I wanted to know!

 

[RobH]

Agency workers at Nissan UK are on 30% less wages than everyone else. The agency takes a huge cut.

I currently have an agency driver working for me, we pay the agency £17 an hour and the driver gets £10 an hour

This is for temping agency as Castiel explains, not to be confused with a recruitment agency. Recruitment agents are the types that approach you on linkedin with job offers and come out of the woodwork as soon as your company posts a job advert with 'NO AGENCIES' marked on it.

 

[weringo]

They take a cut from the company that hires you, it wont directly influence your salary and the cut doesn't come out of your pay.

But it isn't from your pay.

All wrong.

During my first job when I was 17 the recruitment agency took a 10% cut, it was directly deducted from my payslip.

My colleagues who hadn't been recruited via the agency got paid the full wage.

The full answer is... it depends. Read the contract with the recruitment agency.

 

[sniffy]

...come out of the woodwork as soon as your company posts a job advert with 'NO AGENCIES' marked on it.

I was checking out a position a few weeks back and it read "Strictly no agencies, particularly the one that keeps referring to me as Rik". Great.

 

[Housey]

For clarity....

1) If you are a sub contractor placed by an agency then they will typically agree an hourly rate with the company and take a % of that hourly rate for the length of the contract.

2) If they are a recruitment agency seeking a full time employee for a specific role on behalf of a company then they will typically bill the employer directly 10%-25% of the first years basic wage plus any guaranteed bonus once they fill the position. This typically wont impact the employee.

 

[Castiel]

All wrong.

During my first job when I was 17 the recruitment agency took a 10% cut, it was directly deducted from my payslip.

My colleagues who hadn't been recruited via the agency got paid the full wage.

The full answer is... it depends. Read the contract with the recruitment agency.

That is extremely unusual, and any Agency that takes a cut from your wages is to be avoided.

 

[Gackt]

For a 'highstreet' agency, they'll technically pay the agency at a higher rate (say, £2.something more than your wage) and then the agency pay you a cut fee - their profit margin.

 

[MuvverRussia]

Most IT agencies I've dealt with are 20% of first year salary for permie employees. This is paid by the company, not the employee.

 

[oldbag]

And if they put more than one person for the same job, they don't give a monkey's who gets it, just the commission.

 

[dowie]

The temping agency side of things seems to have been covered

As far as recruitment is concerned they don't directly take a cut from your pay per say but they will earn a fee from the client for placing you - this will tend to be based on a % of your starting salary. (sometimes bonuses also factor into this and it can get more complicated AFAIK). Also you'll sometimes get clauses whereby the fee (or part of it) is only payable if you pass probation, or stay for a certain time, 3 months etc...

I left my first job in London after 2 weeks, the recruiter had sold me a pack of lies and the hiring manager wasn't much better... the recruiter didn't get paid any commission for placing me there as a result. She wasn't happy at all, then kept trying to get me to go interview for similar roles at different firms.

 

[meghatronic]

The client pays a percentage of what your Salary is to the Agency as well as a recruitment fee...this is a transaction between the client and the Agency

It is also worth mentioning that sometimes there is a finder's fee (which can be massive) if the client wants to pay you directly, bypassing the agency, and make you permanent etc.

 

[randomshenans]

lol at the some of these responses.

There are very different circumstances. The only way it should come out of your wage, is if you're on a contract and even then, you shouldn't be on less, if you are why would you want to do it? My agency charges my employer x and I take y, they get the difference. I negotiate y to as much as I can.

Normally for recruiting though, it's a flat fee of 10-20% paid (normally in stages and sometimes have clauses that the recruited party has to have worked in their new position for 6months before the final invoice is paid, to stop companies losing out after they paid to recruit someone).

Headhunting is like the above, but more targeted to what the company is looking for, not the scatter approach that would be used above, sending as many CVs in as possible, they search for people in headhunting to find the right one and we used to charge 33% in 3 stages. Like the above, it is based on the package salary (sometimes base, depends) of the position you're recruiting for. e.g. 100k salary job, we would have got 11k start the search, 11k for a shortlist of candidates and 11k when they'd been placed for 6 months.

You should never have money taken off, as the recruited party, or headhunted party. If you have, or do, then I would run a mile.