The purpose of the UK Recruiter discussion board
is to give recruiters the opportunity to discuss issues relating to their jobs
and the recruitment industry in the UK.
Whilst providers of goods and services to the
industry are welcome to partake in the discussions they should not use this
forum for advertising.
Please read and adhere to the board's guidelines which you will see when you click to "start new topic"
|
Home > Forum > UK Recruiter Discussion Board > Message |
|
|
|
| Start New Topic | Message Index | Threaded View |
|
| advice needed |
| Author: | marc |
| Date: | Monday, 26th Jan 2009 22:39 |
| Views: | 823 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Hi,
I am need of some expert advice so please can someone help.
Last year I worked for a recruitment agency that supplies temps to a specialist niche sector, they started off a few years ago with a margin of 5-6% and have gradually built it up to around 11%. I know that they originally charged the clients less to get the business and it worked.
I am confident that I can copy this and instead of raising the margin, I would keep it at around 7%. I am not interested in becoming a millionaire, I just want to have my own business and earn an average wage. I have knowledge of my previous employer’s financials and I have worked out that if I can do the same amount of business, I will earn a good salary.
My dilemma is:
This is a specialist sector and the contractors are in demand, so should I pay the contractors more or charge the clients less? I can’t split the margin between the two as it wouldn’t be worth it for the contractors.
I recently met a couple of highly skilled contractors in this sector and they told me that I should pay the contractors more, however I am still hesitant about this, as I don’t want lots of contractors moving over to me from other agencies and then find that the clients wont use me because I am charging them the same as the other agencies.
Also, can someone tell me what the current overall factoring/Invoice discounting charge would be on about £500,000 turnover in my first year, I have been quoted anything between 1.25% to 2% and that includes me completing back office and credit control? The clients are all blue chip and credit safe as most of their revenue comes from the government.
I would really appreciate some replies.
Thanks
Marc
|
|
| Reply To This Thread |
| Re: advice needed |
| Author: | Ruffski |
| Date: | Tuesday, 27th Jan 2009 11:13 |
| Views: | 110 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Hi Marc,
Firstly, can I suggest that you get in touch with Tom Atkinson at Cash Simply, as he'd be the best person in my opinion for your to discuss factoring services and costs. Tom's a regular on these boards and really does appear to know his market inside out, can't recommend him highly enough.
I'd also suggest that the level of margin isn't something you should set in stone until you have answered the question of factoring, as this could be a costly mistake!
In terms of who should benefit from your reduced margins, client or contractor, I'd advise that this would be dependent upon the clients and contractors you are looking to work with, and should probably be decided after you've got a clear picture of payments terms etc. Contractors should also give you something back for the higher rate you pay them and I'd suggest that this could be referrals of other contractors or clients. Don't get into the habit of giving 'something for nothing' which is a business model doomed to fail.
Once you have spoken with Tom, you should be in a better position to make a clear judgment as to how you should proceed. Sorry I couldn't answer all your questions, but I do think you need to get a few things clarified before making such decisions.
Hope this helps to some degree. Best of luck for the future.
Ruffski |
|
| Reply To This Thread |
| Re: advice needed |
| Author: | Tom Atkinson |
| Date: | Tuesday, 27th Jan 2009 12:12 |
| Views: | 131 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Hi Marc,
An explanation paper has been sent to you separately by e mail outlining the types of invoice funding avaiable in the recruitment market.
Please e mail or call me if you think I might be able to help with specific queries or advice.
Good luck whatever your choice. Tom. |
|
| Reply To This Thread |
| Re: advice needed |
| Author: | Marc |
| Date: | Tuesday, 27th Jan 2009 19:56 |
| Views: | 113 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Hi Ruffski,
thanks for the contact, I have spoken with Tom and he has been amazingly helpful. Seems like a really genuine guy.
Also, thanks for your advice.
I know I am going back over things but Just hypothetically:
If the factoring is good and I can still make at least a 5% margin, and I know that my previous boss charged the clients less to get the business, but at this present time there is a demand for quality contractors.
Once I have found the contractors, would you charge the clients less to get the business or pay the contractors more to get them to register with me?
Have you been in this situation or do you know anyone who has?
Kind Regards
Marc |
|
| Reply To This Thread |
| Re: advice needed |
| Author: | JJ |
| Date: | Thursday, 29th Jan 2009 07:12 |
| Views: | 112 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Have you thought about the posibility that your previous company may not be happy about you doing this and could possibly take you to court over it?
Don't want to put a downer on things, just trying to help :-) |
|
| Reply To This Thread |
| Re: advice needed |
| Author: | Ruffski |
| Date: | Thursday, 29th Jan 2009 12:28 |
| Views: | 118 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
I'd be more tempted to offer the contractors slightly higher rates as this will help to attract them to your new business, and contractors can be worth their weight in gold if you manage your relationship with them properly, in that they will often give referrals of other contractors and also clients. Having friendly contractors in a business can be akin to having an inside man / woman, they can tell you when the company are recruiting, what they are recruiting and who's handing the recruiting within the company and on occasion, they can influence the recruiting manager to give you a try. I would stress that I still feel you need to review this for each individual contractor and client - Don't set a policy which will tie you down. Hope this makes sense.
Good luck!
Ruffski |
|
| Reply To This Thread |
| Re: advice needed |
| Author: | marc |
| Date: | Saturday, 31st Jan 2009 16:26 |
| Views: | 118 (excluding Digests and RSS feeds) |
| Category: | Other | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=172233 |
|
Hi Ruffski,
thanks for your advice.
Paying the contractors a bit more seems to be the best option.
Ive already got a few contracts that I call on a regular basis and most give me some information even if its the first time that I have spoken with them.
Regards
Marc |
|
| Reply To This Thread |
Please note: The reply form is not showing because the posting is older than six months or the thread is locked. Please start a new topic or contact the forum administrator.
|
| -->
|
|
