Am I being taken advantage of? Has anyone used a staffing agency?

posted 6 years ago in Career
Post # 3
Member
595 posts
Busy bee
  • Wedding: October 2012

They aren’t necessarily taking advantage of you. I used to do recruiting and I would negotiate with the workers the lowest hourly rate that I could then I was able to offer benefits easier if they asked. It Was also easier to get them raises. And to be honest, it increased my commission.

On the other hand, I have worked at a temp agency before and the agency was getting paid $20/hr and I was getting $10. 

Post # 4
Member
390 posts
Helper bee
  • Wedding: September 2012

I can come at it from 2 perspectives.  My Fiance is still with a staffing company and I know that his company pays dear for his as well.  But just to give you a different perspective, most staffing companies I’ve ever audited have very very low profit margins.  Even though your company may be paying dearly for you, the company you are working for is not paying the payroll taxes, unemployement insurance etc, the staffing agency is.  In many companies I’ve seen it is often cheaper for the company to keep someone on as temp through a staffing agency and have them pay all the extra costs involved then for a company to hire someone on permanently.

Post # 5
Member
516 posts
Busy bee
  • Wedding: July 2012

I work as a contractor for a recruiting company.  Those rates are pretty average unfortunately.  You can however use that information to go back to the firm you are contracted with and negotiate a higher pay (lower percentage for them).  They may put up a fight, but really they will want to keep you in the end.  I have had a few friends successfully negotiate for more money out of the contracting companies profit.  Good luck!

 

Post # 6
Member
11747 posts
Sugar Beekeeper
  • Wedding: November 1999

Having worked in HR and Recruiting, and at a company that worked heavily with staffing agencies, I don’t think 38% is an outrageous cut – depending on the kind of position.  Is this a higher level position?  Even if the company directly employed you, they will most likely still have to pay a cut to the recruiter for X amount of time because that is how they found you. I doubt the agency will take less of a cut to pay you more but it can’t hurt to ask?  

Post # 10
Member
3569 posts
Sugar bee
  • Wedding: April 2013

I worked for staffing agencys and it`s normal. The only good thing is I made a lot of contacts through them and got a permanent job from someome I met through them. I would advise you to work hard, speak to your bosses for pointers, make it known that you love to stay and grow within the company. If they hire you then you can negotiate your salary.

Post # 11
Member
3520 posts
Sugar bee
  • Wedding: March 2012

The client can be sued by the agency if they hire you under the table. By sending you there, the agency is entitled to the placement fee and they do not take that lightly.

Post # 13
Member
3520 posts
Sugar bee
  • Wedding: March 2012

Ah, ok, sorry. Yes, it’s normal. It is usually based on a sliding scale that goes down as your salary goes up. Entry and midlevel is usually 30-40% of salary, upper level is 15-25%. Your hourly should be industry standard, convertible to a placement fee if you ever do get hired at that job.

For example, if we got a medical assistant for $20/HR, she would get $12-$14 based on her experience and previous pay. If we wanted to hire her after 4 weeks, we would be charged 40% of her negotiated salary minus the administrative fees we had already paid.

You can absolutely ask about overtime or a higher rate, especially after you have proven yourself. It would cost them too much to replace you in time and money.

Post # 16
Member
11233 posts
Sugar Beekeeper
  • Wedding: August 2013

Heh, yeah, I gotcha. I work through a staffing agency right now, although I don’t know how much they make on top of me, but I was trying to find out when I thought that I would be hired in to my old job (for negotiation purposes). I never found out, but I’ve heard that some places take up to 50% (but I don’t know how true that is).

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