How to get the most out of your agency Presented by Steve Woodward MREC Cert RP Business Manager – Workmates Maintenance

Introduction Who am I – Steve Woodward What do I do – Workmates Maintenance Why am I relevant to you – I only supply staff to your industry “why do these people keep calling me” “why do these people keep calling me”

Perception is everything A necessary evil Worse than estate agents Time-wasters Don’t listen Just CV pushers Have I missed anything?

Recruitment Agencies What types are there - High Street or local suppliers Specialist industry or sector companies Large multi-discipline companies Master vendors

What can they be good for? Holiday cover/long term sickness cover Increased work load A short term solution whilst a permanent member of staff is found Casting out the net to get candidates that may have not seen your advert for position.

The common goal of recruitment Generate sales and revenue by making a margin on the staff you supply and the charging of a fee for placing a permanent member of staff Generate sales and revenue by making a margin on the staff you supply and the charging of a fee for placing a permanent member of staff All agencies do this but for some that’s all they care about

Exceptions to the rule But there are exceptions - Agencies that charge realistic rates And ones that think about - Long term business relationships not short term gain

What should I expect as standard Obtaining the best candidates with the right checks A service that meets your expectations An agency that listens to your needs and adapts A service that complements your business rather than hinders it. And that the agency listens and is honest

What extra can an agency offer The creation of a Preferred Supplier List Providing a spend rebate/discount Only paying VAT on the agencies margin not the whole charge rate.(**) The offer to work in partnership with an agency Invoices produced how you want them Better and longer payment terms

Question the agency what you get for your money How do they interview their candidates What information do they obtain on candidates before they are sent to your company What information do they obtain from candidates What do you expect from an agency to justify their charge rate?

An open book – insiders guide to charge rates How do agencies pay their candidates – PAYE + Holiday PAYE Paid in rate (PIR) Self employed (CIS) Ltd company

CIS or LTD company pay type Pay rate £12 per hour Charge rate £15 per hour The agency margin will be £3 per hour This is possible because – An agency is not required to pay Employers NI on a self-employed person An agency is not required to pay Employers NI on a self-employed person So a clear margin of £3 (£15 - £12) is made by the agency

PAYE paid in rate (PIR) Pay Rate £12 per hour Charge rate £15 Your margin will be £1.55 per hour This is due to – When somebody works PAYE the agency must cover the clients NI contribution. Calculated by £12 (pay rate) + £1.44 (Employers NI 8.3%) = £ £15 = £1.55 margin per hour

PAYE with Holiday Pay Rate £12 per hour Charge rate £15 The agency margin will be £0.44 per hour This is because – An agency must cover employers NI Plus allow for 24 days a year holiday £12 (pay rate) + £1.44 (Employers NI 8.3%) + £1.12 holiday pay 10.7%) = £ £15 = £0.44 per hour margin

What else effects a charge rate Market pay rates Inflation The cost of living Rising fuel costs Location of the proposed job vacancy Size of contract Size of client and possible client spend

Conclusion Use an agency that is regulated by the Recruitment and Employment Confederation (REC) Find an individual consultant that you can build a relationship with Your views - Please take 5-mins to give me your views Please take 5-mins to give me your views

Any Questions PLEASE be as blunt and honest as you wish I will endeavour to answer your question as to how I would have worked as your agency And please don’t worry I have broad shoulders Thank you for your time