how to get the most out of your agency presented by steve woodward mrec cert rp business manager –...
TRANSCRIPT
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