Why am I only earning £8 when you’re charging the company £11? It’s too much easy money for recruiters!

Why am I only earning £8 when you’re charging the company £11? It’s too much easy money for recruiters!

March 3, 2015 - 12:06 pm

Why am I only earning £8 when you’re charging the company £11? It’s too much easy money for recruiters!

If you happen to see our charge rates, you may well feel as though you’re being cheated out of a higher wage.  If you’d seen the above example, you’d be wondering why we get to pocket £3 per hour, just for making a few phone calls. Right? Wrong!

 

Basic Rate

Standard Working Hours

 

40.0

Pay Rate

 

£8.00

Actual ENIC Provision @

9.13%

£0.73

Holiday Provision@

12.07%

£0.97

Sick Pay Provision @

0.50%

£0.04

Pension Pay Provision @

0.73%

£0.07

True cost of Employment

 

£9.81

 

As you can see in the table above, that £3 is split between your pension pay, your sick pay, your holiday pay and the National Insurance payable by us, as we are acting as your employer.

This means that as an employee, your cost to the employer (whether it be an agency or by the company direct) is actually £9.81 per hour.

A Recruitment Agency is a business, just  like a supermarket or a restaurant, and therefore we do charge a fee – in this example, we earn £1.20 per hour. This money goes towards the cost of running the office – (rent, heating, electricity, stationary etc) and towards our wages.

As for the ‘just making a few phone calls’ – here’s what we do when recruiting for our clients:

  • Negotiate rates and terms with the client
  • Search our database / online CV database’s for suitable candidates
  • Write a job advert and place this on various online job boards
  • Filter our response / read CV’s
  • Call candidates to pre-screen over the phone, gathering more information and ascertaining whether you’d fit into the role
  • Interview candidates in our office
  • Call the named references for feedback
  • Create a ‘send-out’ CV – an anonymous cv – to send to our client for their perusal
  • Either organise a 2nd interview with the client, or send you into work
  • Create and send your COA – a form containing all of the specific information for your new role.
  • Call after your start time to confirm your arrival
  • Call the candidate after their first shift in order to confirm all went well
  • Call the client to make sure all went well.
  • Keep other candidates on standby in case you can’t make it/fall ill/ don’t like it.

If you’ve got any more questions on the way recruitment agencies work, mail us at info@essentialrecruitment.co.uk and we’ll do our best to explain.

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