Now Agencies Must Pay Contractors Even If The Client Does Not
We received this in the Comments section in response to our article Ten Reasons Why Agents are Complete Idiots
IMNSHO there are three types of agent:
1. Serious - Looks at the CVs and puts one maybe two CVs on the desk of their client, each of these potentials has been thoroughly vetted, and (shock horror!) they have actually met the contractors before attempting to place them.
These agencies have a margin towards the high end, but they actually earn their cash. The right guy is put forward for the job. There is no HR function required of the client. The contactor is happy as he/she is working with professionals.
2. Run-of-the-Mill - Looks through the CVs sends three to six CVs to the client for one position. Probably the right guy is sent for the job. Most likely someone who is wrong for the job is sent if they have previous employment (sorry.. service provision :D) with that client as the agency know he is more likely to be hired even though he is not the guy for the job.
These guys are usually on the client's ""Preferred Supplier List"" and their margin is limited to 15% max. They will probably place the right guy, but they play fast and loose when it suits (and when they think they can get away with it). the are generally acceptable to work with as a contractor.
3. Joke - Repeatedly carpet bombs clients with CVs every time the client mentions a ""*possible* requirement for a *maybe* position to be filled *or not* in six months time"". These agencies are the real bottom of the heap. They add no value to the client's HR process (the client is after all doing their own filtering of the stack of CVs put forward for the position).
They only add a margin (that will be outrageous if they can manage it) and a little legal insulation for the client, whilst adding a whole host of problems for the contractor at their mercy.
The Three Groups
The first group a client is happy to pay, they got the best guy for the job, and the agency did that for them.
The second group generally do a good job, and more each day get ISO9000 certified in an effort to do a good job. The client does not mind paying for these guys but may balk at some of the suggested margins if he ever finds out what they are.
The third group are chancers at best, the client is usually furious with them once they find out how much that have been charged. (Remember both client and contractor think the margin is rightfully theirs! :))
The main problem with all this, is that group three are the ones we and the clients always hear about, and they are the unprofessional oiks that get the industry (as a whole) the image of being a highly paid bunch of carpet baggers!
I agree that they need to clean up their act, but I also acknowledge that they are not likely to do so.
Not Going Away
And finally, as much as many of you want rid of agencies and their agents, they are unlikely to leave in a hurry. Clients want to pay a quarterly/halfly invoice not a weekly or monthly invoice which is the way you want to be paid. And clients want to be in a position of not suddenly finding a worker has employment rights, which an intervening agency insulates them from. there are more reasons, but fankly this comment has already gone on too long.
I for one think a great many of the agencies do a great job, there are always some bad apples in the basket, and they are the ones we need to concentrate on.
Anyway I'm off to the pub.
by: Gerry McLaughlin
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