In Scotlands Oil & Gas Industry there was a concern amongst the big employers that Engineers were switching jobs on a regular basis to move to better pay. This caused employers considerable problems in recruiting and retaining key Engineers. Wages spiralled and companies training programs were essentially benefitting well the engineers themselves.
of course the catalyst in all this was us lot.. the evil recruitment agencies who were encouraging engineers to move jobs and helping them to negotiate fat wage increase, whilst at the same time filling their own pockets with big fat fees.
So the employers got together and decided that the best thing to do was to make such activity for agents unprofitable. They all agreed with a gentleman's handshake to pay agencies the same rates for contract (mark up of 8%) and for permanent 10% of basic salaries.
This had the effect of depowering the cycle of employee mobility by putting the onus back on the Engineers to do their own thing. After all no agent in their right mind was going to spend inordinate amounts of time coercing engineers to change jobs with such low rewards. Instead agencies became entirely reactive (as opposed to proactive) in their recruitment activities, looking for volume with the existing market of engineers available in order to make money.
Whilst everyone can snigger at the misfortune of the agencies this policy has had the effect of helping companies to retain staff and keep wages down, whilst putting agencies in their place.
The other effect is that the engineers themselves are losing out, because their skills are no longer subjected to market forces and a lack of information along with numerous no poaching agreements has protected these companies from competition.
I am trying to break into this market and have decided to refer this arrangement to the OFT. Are any of you Jockos aware of these arrangements? and do they also apply to IT contractors in the region.
I have also attached a poll on the subject
of course the catalyst in all this was us lot.. the evil recruitment agencies who were encouraging engineers to move jobs and helping them to negotiate fat wage increase, whilst at the same time filling their own pockets with big fat fees.
So the employers got together and decided that the best thing to do was to make such activity for agents unprofitable. They all agreed with a gentleman's handshake to pay agencies the same rates for contract (mark up of 8%) and for permanent 10% of basic salaries.
This had the effect of depowering the cycle of employee mobility by putting the onus back on the Engineers to do their own thing. After all no agent in their right mind was going to spend inordinate amounts of time coercing engineers to change jobs with such low rewards. Instead agencies became entirely reactive (as opposed to proactive) in their recruitment activities, looking for volume with the existing market of engineers available in order to make money.
Whilst everyone can snigger at the misfortune of the agencies this policy has had the effect of helping companies to retain staff and keep wages down, whilst putting agencies in their place.
The other effect is that the engineers themselves are losing out, because their skills are no longer subjected to market forces and a lack of information along with numerous no poaching agreements has protected these companies from competition.
I am trying to break into this market and have decided to refer this arrangement to the OFT. Are any of you Jockos aware of these arrangements? and do they also apply to IT contractors in the region.
I have also attached a poll on the subject
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