The average monthly margin charged by IT staffing agencies has
declined by three per cent since June, according to figures
released recently by CashFriday.
The company, which provides payroll and administration support
services to primarily new start agencies in the recruitment
industry, says the average gross margin for staffing companies in
the IT sector during October was 18.5 per cent, compared to 21.5
per cent in June.
The figure is one higher than September's result of 17.5 per
cent, notes CashFriday, but is almost two per cent less than the
sector's result for August (20.2 per cent).
As a whole, the recruitment industry registered a margin of 25.3
per cent during October - it's highest figure since June (24.4 per
cent).
According to the company's managing director, Tom Atkinson,
CashFriday bases its monthly margin index on an evaluation of a
"basket" of its clients, looking at their actual invoice values and
the cost of temps (gross play plus employers NI) to determine an
approximate gross margin for the industry. While the company will
not reveal who its clients are or how they operate in the IT
industry, it does say it works with a sufficient number of agencies
nationwide to provide a reliable statistical analysis.
CashFriday was established in 1994 as Eurolead Services.