Any comments? Or should I not be asking these questions?

For those of you who work in agencies and are placing contractors I have some questions for you.

What are agencies getting for Markups on Contractors these days, Percentage?

How many of you are offering benefits on W-2 contractors? If so, what are you offering?

How many do not offer benefits on W-2 contractors?

How many of you are placing 1099's, and how often?

What is the average number of contractors a Recruiter should have on assignment, if they are a kick-ass recruiter?

What is the average bill rate?

What is your area of specialty, i.e. what kinds of contractors are you placing?

Thanks, I just would like to get a pulse, since I own my own business and do not work onsite at an agency.

Views: 133

Comment by Craig Goldberg on June 1, 2009 at 4:33pm

Im not sure many people would be willing to give up this kind of information. If i were to answer these questions, it would definately violate my employment agreement, competitive edge, etc. The only thing i can say as far as mark ups is that is between you and your client generally they will have an idea of rate, and its our job to find the best available person to fit with in their budget, while still making it profitable.

i work in the tech recruiting area as well, to answer your benefits question i do offer full medical and dental benefits to every consultant wanting to work on our w2. in the end it is much more cost effective for the consultant to get their benefits through us rather than going independantly.
1099s and corps are a necessary evil but my general thoughts is that is better to be marketing people that are willing to be your employees rather than simply marking up someone elses.

Good recruiters in this market should have between 30-40 people on billing unless it helpdesk then double that number. to be considered competent at least in my experience.

I know its not a ton of info but hope it was helpful.

Comment by Pamela Bovaird on June 1, 2009 at 5:00pm
Thank you, Craig. Yeah that was helpful. I appreciate your feedback. I didn't think people would want to give up the percentage info. Ideally it is best to work off the bill rate the customer wants to pay, I agree. But how do you get an agreement that is not percentage based when you go through HR to prepare the contract?

Most of the time, my experience is they want a percentage markup. And, definately that markup needs to be higher if you are also paying benefits.
Comment by Craig Goldberg on June 2, 2009 at 2:22pm
in my experience percentage is really only applicable with ft hires. For contracting, why would you need to disclose the pay rate. If you are being audited that is one thing, if not most places should have a rate card in place in which case then you operate your business as you see fit. If it is percentage it should be a different mark up for both corp salary and w2. lets say your placing a BA. find out from the hiring manager what they have paid for bas in the past and come in around that number, or lower if you can beat it.

If they wont go that route figure out your costs and propose, if its w2 its this % if its salary its this % and if the contractor is independant its this Percent% . Determine what you want to make and stagger it in tens

ex. salary 50%
w2 40%
corp 30%
Comment by Pamela Bovaird on June 2, 2009 at 2:58pm
OK. Thanks, Craig.


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