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Recruitment agency margins

We've just been through a big exercise to consolidate the number of agencies we use (from around 10 to 2 preferred suppliers) and renegotiate margins.

Don't want to discuss exact margins, but we were targetting nearer to 10% than 15%, and had a successful outcome to the process.

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Comments (3)

Neil Chandler:

In a recession, reducing margins may seem sensible. Whilst recruiters are idle, margins can be squeezed but what's the point if you're not actually hiring and have few contractors? The size of the margin is irrelevant if you don't actually hire anyone.

Coming out of recession, when recruiters are busy, how much service will you get on low numbers compared to companies prepared to pay 18% or more? Given the choice of working hard for 12% or 20% per candidate, I know where my effort would go.

I think agencies understand the that the current climate makes it impossible to stay at the current rates and so are wiling to renegotiate to keep business.

KEVIN DOMMAN:

Can I ask an agency for their margins? Is there a law that says I can or can't?

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