>From my point of view my biggest issue is with the percentage commission.
My family is full of Real Estate agents and so I am very familiar with percentage driven jobs. However I've seen that a salesperson earning money purely from percentages can easily fall into a desperation spiral where they are not selling enough and so desperately try to close deals, despite the inappropriateness. This desperation leads to failure and then the cycle continues. First hand this is the sort of behaviour we see from recruiters. Instead of acting as a good agent, they desperately contact (and annoy) as many people as they possibly can. Flooding job boards, mailing lists, meet ups and anywhere else a candidate might be. Perhaps this isn't the behaviour we see from the really good ones, but this is the majority of interactions. I personally think that industries like this could be significantly transformed by switching from percentages to flat rates based on services. The Recruitment Agency charges some fixed cost per resume, or per candidate or per hour, plus a fixed "bonus" for landing a successful candidate. Then the recruiters themselves are salaried. Just like any Software or Digital Agency. The recruiters themselves want the meaty percentages, because it seems like a better deal - however just like other sales people who work on commission this actually works to both parties detriment. An article I like by Fogcreek about salespeople and commission http://blog.fogcreek.com/why-do-we-pay-sales-commissions/ - Ben On Monday, 16 July 2012 at 12:52 PM, Andrew Stone wrote: > Thanks for being open and honest Ash. > > In my experience 15% is better than average providing you have included > on-costs like insurance and 6% payroll (for contractors). > You should do better than most, best of luck. > > Regards, > Stonie. > > > On 16 July 2012 11:46, Ashley P <[email protected] > (mailto:[email protected])> wrote: > > 15% of the salary package for permanent roles and approximately a 15% > > margin for contractors. :) > > > > A lot of contractors think we don't do anything for them. This is actually > > true we don't. > > > > The service we provide isn't paid by the contractor, it's paid by the > > company. > > > > The margin we make is payment for the head-hunting/short-listing process > > for the companies requirement. If a new contract comes in I'll often work > > back until 8 trying to call as many people as I can to see if they are > > interested in the role. > > > > It is surprisingly hard to find good developers who are open to new > > opportunities! :) Most are usually happy already! > > > > A common misconception is that once the developer starts he goes. "Hey how > > come your taking 15%-20% of my pay-check". Seems fair enough at first sight > > however, we need to get paid for the 100 other people we called trying to > > interest them in the role! > > > > On Monday, 16 July 2012 09:13:31 UTC+10, Nicholas Faiz wrote: > > > Ah, the home loan example was left unfleshed out. > > > > > > One of my first programming jobs was in the home loans sector, and I saw > > > how much mortgage brokers were making then (we're talking $500 an hour, > > > etc.), without transparency. Since then some regulation has occurred, and > > > mortgage brokers now openly state how they make their money (a sales > > > commission structure from banks, I believe). > > > > > > > > > > > > On Monday, July 16, 2012 9:11:10 AM UTC+10, Nicholas Faiz wrote: > > > > Philoye, > > > > > > > > Amusing. :) > > > > > > > > But there is a big difference here. Recruiters offer their services to > > > > coders (and potential employers). So I think transparency is fair > > > > there. In that sense, it's somewhat similar to speaking with a mortgage > > > > broker, who will act as a middle man and find you the best loan. > > > > > > > > I'm happy to explain what I earn to an employer, or a recruiter, and to > > > > go through it and justify it. This is a somewhat moot point, as they > > > > have to find out anyway. I think it'd be *terrific* if I saw a similar > > > > transparency from a recruter. > > > > > > > > And note, this doesn't mean Ash has to explain things en masse to the > > > > group. I'd just think it'd be a reform of sorts if recruiters began be > > > > explaining how they take their cut, as middle men often do. It'd be a > > > > factor for me when deciding to deal with one. > > > > > > > > Cheers, > > > > Nicholas > > > > > > > > > > > > > > > > On Monday, July 16, 2012 8:31:28 AM UTC+10, philoye wrote: > > > > > Nicholas and Stonie, > > > > > > > > > > Something got cut off on your emails. > > > > > You know, the part where you post your hourly rate/salary in a public > > > > > forum, along with its justification for us all to judge. > > > > > > > > > > p. > > > > > > > > > > > > > > > On 16/07/2012, at 8:17 AM, Nicholas Faiz wrote: > > > > > > > > > > > Stonie great question! Recruiters who were transparent about what > > > > > > they charged, and could justify it, would win a lot of ground, I > > > > > > think. > > > > > > > > > > > > > > > On 15/07/2012, at 11:57 PM, Andrew Stone wrote: > > > > > > > > > > > • Permanent developer: 100K pa - what is your placement > > > > > > fee? > > > > > > • Contract developer: Client Pays 100ph total (including > > > > > > all on costs) what is the developer paid ph? > > > > > > > -- > > You received this message because you are subscribed to the Google Groups > > "Ruby or Rails Oceania" group. > > To view this discussion on the web visit > > https://groups.google.com/d/msg/rails-oceania/-/VsF6IzD1cK0J. > > > > To post to this group, send email to [email protected] > > (mailto:[email protected]). > > To unsubscribe from this group, send email to > > [email protected] > > (mailto:rails-oceania%[email protected]). > > For more options, visit this group at > > http://groups.google.com/group/rails-oceania?hl=en. > > -- > You received this message because you are subscribed to the Google Groups > "Ruby or Rails Oceania" group. > To post to this group, send email to [email protected] > (mailto:[email protected]). > To unsubscribe from this group, send email to > [email protected] > (mailto:[email protected]). > For more options, visit this group at > http://groups.google.com/group/rails-oceania?hl=en. -- You received this message because you are subscribed to the Google Groups "Ruby or Rails Oceania" group. 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