Contractors condemn rogue IT agents

Starting a new contract as an IT professional is a daunting prospect often made easier only by years of experience that help smooth over the rough edges of a new engagement.



Not all contractors however possess the know-how of their veteran peers, and the task of securing a fresh contract is exacerbated by inefficient or rogue agents.



Dubbed the 'cowboy' agent or the 'agency from hell,' these personnel suppliers stand accused of using a range of techniques that serve to damage not only the reputation of the agent but also that of contractors and the industry as a whole, thus potentially jeopardising the longer term competitiveness of the UK.



Contractors have told CUK that some agents are still up to their 'same old tricks' and have urged their less wary counterparts to maintain a cautious approach when doing business in the marketplace.



At a time when contractors are in continual demand, bulletin boarders and IT workers have rejoiced in lifting the lid on rogue technology agents.





Fake contract advertising: The most common complaint to CUK about the rogue agency seeking contractors in 2005. Either a conscious effort to advertise a job that doesn't exist, allowing an individual agent paid by his/her employer for every CV added to their database to clock up commission and to extract client contact data from CVs as a source of sales leads, or a sign of an inefficient provider failing to keep up with their own portfolio.



Tell-tale signs to watch out for include job postings that are vague on location, use contradictory or unfamiliar terms to detail skill sets and advertise the same job in a different location.



Whichever technique is used, this practice is illegal – an agency is only legally allowed to advertise positions which actually exist, and where they have the authority of the client to do so.





Eroding rates of pay: Typically this occurs when contractors openly disclose or are pressured into revealing their minimum rate of hourly/daily payment.



Rogue agents then translate the so-called 'bottom line' figure into the maximum amount of money a contract will payout. This effectively saddles a contractor with a 'bread line' payment and sours relations before work begins.



Likewise, some contractors said they often started work after negotiating a rate, only later to discover the agency cut is £100 more than initially disclosed.



In addition, contractors said rates often change from the figure in the job advert, so a post suggesting a daily rate of £450 ends up as an offer for just £300.





Silent agents: Lack of feedback from a requested CV or interview, failure to alert contractors to client-specific conditions and a general absence of advice are all key complaints from IT contractors.



Agents may also 'go silent' once they have told a professional they have been put forward for a contract. In the worst case, the agent may be lying because consciously or inadvertently he or she has already supplied the maximum amount of CVs specified by the client.



Rather than refuse the CV, they add it to their database and clock up commission from their employers.



As contract investigators point out, being told a candidate has been put forward (when they haven't) actually inhibits the IT professional from selling himself to another agent.





'Trust me, I'm an agent':"Your contract must be signed today or the client will select someone else," is often a way of pressuring a contractor to commit to a decision.



Attempts to pressure IT workers into signing can be due to many reasons, such as agents protecting against rival offers, or simply wanting to close the contract. But is the agent making the same commitment – have they actually got the corresponding commitment from the client, or are they just taking an option on your services in case the client decides to engage you?



Agency-speak like 'it's because you're new to contracting' or, 'as a foreign national in UK IT this is policy' should be treated with caution.



One private investigator told CUK: "These are attempts on behalf of the agent to increase their commission - no client is remotely interested whether you are a first time contractor or new to the UK – you were chosen for your skills."



Declaring referees before a contract offer is tabled might seem like lunacy to veteran contractors – and it is; but reflects the wide range of tactics rogue agencies employ to achieve their ends.



Most of these complaints to CUK suggest agents say "it's a matter of internal policy" to sway contractors into revealing referees before they are put forward for a contract.



This particular nasty trick erodes a contractor's support network by having agents waste the time of people on whom the IT professional relies. When referees are hounded by agents with unwanted sales pitches, complimentary references tend to become harder to secure.





Clauses, Agreements and Small Print: Both clients and agents often insist their contract contains an Insolvency Agreement Clause and contractors should expect the same.



"The contract needs to make adequate provision for what happens in the event that the agency becomes insolvent. Often agency contracts are curiously one-sided, and have express provision allowing the agency to terminate if the contractor becomes insolvent, but are silent on what happens if the agency itself goes bust. Strange, given that (a) the agency is the one who is to do the paying, and (b) I suspect more agencies than contractors go into insolvency," advised contract specialist Egos.



"Contractors should not sign contracts until (a) they themselves are ready to make the commitment, (b) they have thoroughly understood all the terms - and the IR35 implications - of what is on offer, and (c) they are clear as to the extent of the commitment that the agency and client themselves are making – i.e. is this a genuine contract, or just an 'option' on their services which will neutralise them from accepting another offer elsewhere, but from which the agent may back out with impunity if the client doesn't sign up."