How to get the most How to get the most out of your agencyout of your agency

Presented by Presented by Steve Woodward Steve Woodward MREC Cert RPMREC Cert RP

Business Manager – Workmates MaintenanceBusiness Manager – Workmates Maintenance

IntroductionIntroduction

Who am I Who am I – – Steve WoodwardSteve Woodward

What do I do What do I do – – Workmates Maintenance Workmates Maintenance

Why am I relevant to you Why am I relevant to you – – I only supply staff to your industryI only supply staff to your industry

““why do these people keep calling me”why do these people keep calling me”

Perception is everythingPerception is everything

A necessary evilA necessary evil

Worse than estate agentsWorse than estate agents

Time-wastersTime-wasters

Don’t listenDon’t listen

Just CV pushersJust CV pushers

Have I missed anything?Have I missed anything?

Recruitment AgenciesRecruitment Agencies

What types are there - What types are there -

High Street or local suppliersHigh Street or local suppliers

Specialist industry or sector companiesSpecialist industry or sector companies

Large multi-discipline companiesLarge multi-discipline companies

Master vendors Master vendors

What can they be good for?What can they be good for?

Holiday cover/long term sickness coverHoliday cover/long term sickness cover

Increased work loadIncreased work load

A short term solution whilst a permanent A short term solution whilst a permanent member of staff is found member of staff is found

Casting out the net to get candidates that Casting out the net to get candidates that may have not seen your advert for may have not seen your advert for position. position.

The common goal of recruitmentThe common goal of recruitment

Generate sales and revenue by Generate sales and revenue by making a margin on the staff you making a margin on the staff you supply and the charging of a fee supply and the charging of a fee for placing a permanent member of for placing a permanent member of staffstaff

All agencies do this but for some All agencies do this but for some that’s all they care aboutthat’s all they care about

Exceptions to the ruleExceptions to the rule

But there are exceptions - But there are exceptions -

Agencies that charge realistic ratesAgencies that charge realistic rates

And ones that think about - And ones that think about -

Long term business relationships Long term business relationships not short term gainnot short term gain

What should I expect as What should I expect as standardstandard

Obtaining the best candidates with the Obtaining the best candidates with the right checks right checks A service that meets your expectations A service that meets your expectations An agency that listens to your needs An agency that listens to your needs and adapts and adapts A service that complements your A service that complements your business rather than hinders it. business rather than hinders it. And that the agency listens and is And that the agency listens and is honesthonest

What extra can an agency offerWhat extra can an agency offer

The creation of a Preferred Supplier The creation of a Preferred Supplier List List Providing a spend rebate/discount Providing a spend rebate/discount Only paying VAT on the agencies Only paying VAT on the agencies margin not the whole charge rate.(**)margin not the whole charge rate.(**)The offer to work in partnership with an The offer to work in partnership with an agencyagencyInvoices produced how you want themInvoices produced how you want themBetter and longer payment termsBetter and longer payment terms

Question the agency what you Question the agency what you get for your moneyget for your money

How do they interview their candidatesHow do they interview their candidates

What information do they obtain on What information do they obtain on candidates before they are sent to your candidates before they are sent to your companycompany

What information do they obtain from What information do they obtain from candidatescandidates

What do you expect from an agency to What do you expect from an agency to justify their charge rate?justify their charge rate?

An open book – insiders guide to An open book – insiders guide to charge ratescharge rates

How do agencies pay their candidates – How do agencies pay their candidates –

PAYE + HolidayPAYE + Holiday

PAYE Paid in rate (PIR) PAYE Paid in rate (PIR)

Self employed (CIS)Self employed (CIS)

Ltd companyLtd company

CIS or LTD CIS or LTD company pay typecompany pay type

Pay rate £12 per hourPay rate £12 per hourCharge rate £15 per hour Charge rate £15 per hour The agency margin will be £3 per hourThe agency margin will be £3 per hour

This is possible because – This is possible because – An agency is not required to pay An agency is not required to pay Employers NI on a self-employed Employers NI on a self-employed personperson So a clear margin of £3 (£15 - £12) So a clear margin of £3 (£15 - £12) is made by the agencyis made by the agency

PAYE paid in rate (PIR)PAYE paid in rate (PIR)

Pay Rate £12 per hourPay Rate £12 per hourCharge rate £15Charge rate £15Your margin will be £1.55 per hourYour margin will be £1.55 per hour

This is due to – This is due to – When somebody works PAYE the agency When somebody works PAYE the agency must cover the clients NI contribution.must cover the clients NI contribution. Calculated by £12 Calculated by £12 (pay rate) +(pay rate) + £1.44 £1.44 (Employers NI 8.3%)(Employers NI 8.3%)

= £13.44 - £15= £13.44 - £15= £1.55 margin per hour= £1.55 margin per hour

PAYE with HolidayPAYE with Holiday

Pay Rate £12 per hour Pay Rate £12 per hour Charge rate £15Charge rate £15The agency margin will be £0.44 per The agency margin will be £0.44 per hourhour

This is because – This is because –

An agency must cover employers NIAn agency must cover employers NIPlus allow for 24 days a year holiday Plus allow for 24 days a year holiday £12 £12 (pay rate) (pay rate) + £1.44 + £1.44 (Employers NI 8.3%)(Employers NI 8.3%) + + £1.12 £1.12 holiday pay 10.7%) =holiday pay 10.7%) =

£14.56 - £15 = £0.44 per hour margin£14.56 - £15 = £0.44 per hour margin

What else effects a charge rateWhat else effects a charge rate

Market pay ratesMarket pay rates

InflationInflation

The cost of livingThe cost of living

Rising fuel costsRising fuel costs

Location of the proposed job vacancyLocation of the proposed job vacancy

Size of contractSize of contract

Size of client and possible client spendSize of client and possible client spend

ConclusionConclusion

Use an agency that is regulated by the Use an agency that is regulated by the Recruitment and Employment Recruitment and Employment Confederation (REC) Confederation (REC) Find an individual consultant that you Find an individual consultant that you can build a relationship with can build a relationship with

Your viewsYour views - - Please take 5-mins to give me your Please take 5-mins to give me your viewsviews

Any QuestionsAny Questions

PLEASE be as blunt and honest as you wishPLEASE be as blunt and honest as you wish

I will endeavour to answer your question as I will endeavour to answer your question as to how I would have worked as your agencyto how I would have worked as your agency

And please don’t worry I have broad And please don’t worry I have broad shouldersshoulders

Thank you for your timeThank you for your time