Over the next few weeks we are going to talk about some hot topics in the recruitment industry, the first being that Recruiters set the pay rates!
Misconception: We set the pay rates!
The reality is that clients set the pay rates – I would say 99.9% of our clients pay parity from the off with regards wages i.e. the contractor gets the same rate as the permanent guy working the same role. This is underpinned by the AWR regulations.
In terms of margin, these are squeezed by competition and are no where near the percentages most think we accrue. Yes we make profit, but so do all businesses. If anything, in my experience with regards the clients that don’t pay parity, I am more likely to remove margin from my rate in order to provide parity.
Give me a better rate, over a better margin any day of the week – a settled worker on a contract is a lot more valuable to me than an unhappy contractor with me earning a better rate. I only want to work a job once – the more you work it the less you make!
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