Experis contract to perm % cut

[ContractorBanking]

What's the general agency percentage margin for a contractor these days working in the City? Anyone know the Experis margin for a contractor?

And in the event of an Experis contractor to perm - what is the agency cut in such situations?

Trying to work out how much leverage there is in the event of going perm.

[northernladuk]

Ask them if they are on a fixed margin in which case they will be happy to tell you. Many agents with big clients are on them.

If they are major supplier of a lot of contractors to a large client I'd guess between 4 and 6%. If not I'd guess around 10.

Get that lambo ordered.

[Andy Hallett]

Generally you will find with banks there are no hand-cuff clauses. I'd suspect they can take you for free.

[northernladuk]

Generally you will find with banks there are no hand-cuff clauses. I'd suspect they can take you for free.

I think he's trying to work out how much extra he can charge with no agent involved.

[Andy Hallett]

Depends on his tenure there.

[northernladuk]

Depends on his tenure there.

Don't be trying to use your fancy agency speak to bamboozle me!!

[ContractorBanking]

I think he's trying to work out how much extra he can charge with no agent involved.

Quite the opposite, I'm direct (no third party involved) and trying to ascertain what the client pays with Experis, so I can negotiate appropriately.

[northernladuk]

Quite the opposite, I'm direct (no third party involved) and trying to ascertain what the client pays with Experis, so I can negotiate appropriately.

I thought that was more or less the same same as I said.

Remember thought. The agency earn that money for the work they do. We've had a couple of threads over the year where the contractor expected the gross and was disappointed not to get ythe agency cut as well. If a client doesn't understand this you've a good chance of getting the gross amount. If they are well aware they will not consider it if you get me.

Did the percentages I gave help at all though?

[ContractorBanking]

Quite the opposite, I'm direct (no third party involved) and trying to ascertain what the client pays with Experis, so I can negotiate appropriately.

Thanks NL, yes, that was very useful.

I won't mention those numbers and see what the client comes back with, but great to have a benchmark to set expectations (assuming they decide to move accordingly).

One last question, banks cannot reclaim the 20% VAT, but is this true of software houses? Which institutions cannot reclaim the VAT? (again, that would be a useful negotiating ploy)