mind my spelling, written in a rush and in the middle of breakfast.

On Tue, Jul 31, 2012 at 9:49 AM, Shamael Keng <[email protected]> wrote:
> Hey guys.
>
> This argument/discussion is as old as zues's beard.
>
> Frankly if you don't want to use a recuruiter dont.
>
> If you do want to use a recruiter, negotiate your terms to suit both
> parties. simple. Its a service, you engage them when you need them and
> for a reason.
>
> I you want to bash on an industry just becuase you pay invoices which
> "seem" too much. refer to above point.
>
> In an industry which employs a lot of "questionable" types, if you
> have a bad experiance, name and shame. I can't say I have been
> exemplery, but all I can say is ive been trasnperant throughout the
> whole process.
>
> "Is your recruiter screwing you?". Probably if you let him. The whole
> argument in regards to the costing or cost structure recruiters use,
> use a niche recruiter, if you are going to use one. They will be more
> open to negotiation.
>
> Do your homework, don't be lazy.
>
> You have gone to agency becuase you are having toruble finding the
> right people. Don't go to monkey's when you want to find gold.
>
> Sorry but I fight for the good recruitment agent, the ones who add
> value to business's thorugh finding resources which are hard to find.
> In my eyes there is definate value add, Ive seen it.
>
> Regards
>
> --
> SK
>
> On Mon, Jul 30, 2012 at 4:55 PM, Andrew Stone <[email protected]> 
> wrote:
>> Rob,
>>
>> Your post is a good summary of why many people consider the recruitment
>> model you describe as being 'broken'.
>>
>> The on-costs you point out can be avoided in many cases... lots of small
>> businesses are exempt from payroll tax (Current threshold in NSW is
>> $689,000)
>> And many industry segments for larger corporates (media for one) often does
>> not require PI and PL for Developers.
>>
>> Recruitment agencies tend to charge the insurance anyway as they have a
>> discounted policy for n Developers and it becomes another place to hide the
>> cream (and seems like a value add with a bit of sales talk).
>>
>> Your argument about low paying jobs is a bit ironic... if the offered rate
>> was ~30% higher due to the absence of a recruitment agent... the job might
>> be worth taking.
>>
>> Regards,
>> Andrew Stone.
>>
>>
>>
>> On 30 July 2012 16:11, Rob <[email protected]> wrote:
>>>
>>> Hi all,
>>>
>>> I am a recruiter, and have had success with this board in placing
>>> candidates in the market. I totally agree with what Ashley is saying in
>>> relation to fee structures etc. I would like to elaborate upon the concept
>>> of Margin, which may equate to a higher than 20% markup. I have no doubt
>>> that everyone understands this, but just to be sure, as an example...margin
>>> is the percentage of the charge rate, and markup is the percentage on the
>>> cost...two totally different things....especially when oncosts are involved.
>>>
>>> For instance, if I was to charge a 15% margin on a candidate, who was
>>> earning $100 per hour, I would have to charge the client $129...this ensures
>>> that I am earning 15% margin.
>>>
>>> To the candidate, I am effectively putting on a 29% markup...BUT only
>>> earning 15% margin (of the charge rate)
>>>
>>> This is where the confusion lies the difference between MARGIN and MARKUP
>>>
>>>
>>> ie. for $129 charge, 15% margin ($19), 10% oncost (workers comp, PI/PL,
>>> Payroll Tax), and $100 for the candidate
>>>
>>> $100 + $10 + $19 = $129...the recruiter is earning 15% margin of the
>>> charge rate.
>>>
>>> If we reverse it from a charge of $100 at a margin of 15%....I would earn
>>> $15, oncost $7, candidate rate $77....this is a margin of 15% of the charge
>>> rate....but if you compare the $77 to the $100 charge, it is roughly a
>>> 29-30% markup again.
>>>
>>>
>>> So, if people are seeing 30% markups on their rates, please don't assume
>>> that the recruiter is earning all of that....they aren't. On top of the
>>> services of payrolling, recruiters take the risk of clients folding or not
>>> paying, when we always pay our recruiters upon signed timesheets, regardless
>>> if the client has paid or not....this of course saves the candidate from
>>> having to chase payment (one more worry they don't have to deal with). AND
>>> YES, sometimes clients do fold or don't pay.....which means as a recruiter,
>>> you are out of pocket for the total candidate rate + oncosts and of course
>>> with the margin that you have lost as well. Once had a client not pay for a
>>> candidate for two months, they folded, ...so lost whole lot of money. Some
>>> candidates may laugh and say, well them's the breaks....and well, I would
>>> have to agree....but we do charge a fee for a service and the risk
>>> associated where there is essentially no risk to the candidate in terms of
>>> non-payment (with me anyway)
>>>
>>> Also, 15% or there abouts, in the scheme of things, with the amount of
>>> payroll at risk, is not overly expensive (we currently have a yearly payroll
>>> of about $1.5million per year give or take - money we pay out and hope to
>>> get back - this is small for the market).....I have recruited for some of
>>> the big4 and some of their charge-outs for their permanent employees are
>>> amazing...we are talking 100-200% sometimes.
>>>
>>> So, if you are on a contract through a recruiter, and you are getting paid
>>> on time for the work you are doing and the pay is correct (no hassles or
>>> problems each week)...then this is a good thing and is part of the service
>>> for that 15% margin that they earn.
>>>
>>> I firmly agree with Ashley that rule of thumb contract is roughly 20-30%
>>> increase on a permanent salary...so if you are on $100 per hour, divide that
>>> by 1.25 and you will get your equivalent permanent comparative rate which
>>> can easily translate into a permanent salary package...roughly $115k
>>>
>>> EVERYONE, regardless of industry or skill needs to separate job worth from
>>> personal worth. ie, if a CEO hit rock bottom and could only get a job as a
>>> cleaner, he would only be paid a cleaners salary, even though he is worth a
>>> CEO salary.
>>>
>>> So, if you are getting hit up for low paying roles, that is what the job
>>> is worth to the employer, if you feel that it is too low, then don't go for
>>> it (sometimes employers try their luck)....as recruiters we need to keep in
>>> constant contact with candidates as their situations change and sometimes I
>>> have had candidates go for lower rate jobs (rare, but it does happen). If
>>> you are the best Ruby developer in the world, and you are worth $1000 per
>>> hour but only $50 per hour roles are available, then you have to make a
>>> judgement call based upon job worth to personal worth....ie you can say "Im
>>> worth $1000 per hour and not doing that" and don't work and get zero income,
>>> or you could have income by working at $50 per hour....extreme example I
>>> know, but hopefully highlights the point I am trying to make.
>>>
>>> Yes, there are cowboys in the industry, as with any industry, but like
>>> Ashley said, there are some good recruiters out there that know their
>>> markets well, and network hard to find out who, what, when, where, why and
>>> how........, without finding that information out, they can't provide
>>> candidates jobs nor can they provide clients candidates....hence the need to
>>> call people...many many many many people :)
>>>
>>>
>>> On Friday, July 13, 2012 4:02:19 PM UTC+10, Ashley P wrote:
>>>>
>>>> Chances are they might be :)
>>>>
>>>> But we aren't all bad!
>>>>
>>>> If you are a Ruby developer chances are you've probably seen my name
>>>> before either on Seek, at Ruby meet-ups or on one of those pesky Linked-in
>>>> invites I send around. I really like the Ruby community and have a passion
>>>> for working with developers to find them cool jobs.
>>>>
>>>> That being said recruitment gets a bad name especially amongst the Ruby
>>>> community. I'm here to defend our reputation but also to acknowledge our
>>>> flaws.
>>>>
>>>> Many recruiters do have no idea when it comes to development roles. They
>>>> throw out buzz words like 'Apache' or 'Object Oriented' to make it look 
>>>> like
>>>> they know what they are talking about.
>>>>
>>>> That being said a recruiter can often be of use. They can present
>>>> opportunities that you wouldn't have heard about, discuss potential career
>>>> movements or even help with your resume and skills training programs.
>>>>
>>>> Sure as a quality developer you could probably find a good job yourself.
>>>> But are you sure it's the best job!!? Use your own networks in addition to 
>>>> a
>>>> recruiter to expand the pool of jobs and find yourself in the best job you
>>>> can!
>>>>
>>>> Tips on dealing with recruiters:
>>>>
>>>> 1. Don't only use a recruiter. Use your own networks as well. Come up
>>>> with an many opportunities as you can yourself and then use a recruiter or 
>>>> 2
>>>> to expand your opportunities
>>>> 2. Don't be pushed around on Salary/Rate. Know what you're worth. Be open
>>>> with your salary with a friend or former colleague to know what your worth
>>>> and stick to it. (A common tactic is to ask people what they were on
>>>> previously and hold them to a salary near this. You shouldn't fall for it.
>>>> Be honest about what you were previously on but let the recruiter / hiring
>>>> manager know that due to your research you believe the market rate to be X
>>>> and that you are hoping for a figure around that mark.)
>>>> 3. Ask who the client is. Often a recruiter will want to chat to you a
>>>> bit first however, it is totally within your right to ask who the 
>>>> recruiters
>>>> client is after an initial chat to determine your suitability
>>>> 4. Remember your in control of the process. If you don't like a specific
>>>> recruiter don't use him/her. In fact it's your right to call up and say I
>>>> don't want you representing me to X.
>>>>
>>>> Can a recruiter really help me?
>>>>
>>>> Yes and no. It really depends on the relationships the recruiter has
>>>> built.
>>>> If the recruiter is blindly sending CV's around town without having met
>>>> the hiring manager they really won't be of any use to you.
>>>> That being said if they have built a strong relationship with the hiring
>>>> manager their word often will decide whether or not you get an interview 
>>>> :).
>>>> They can also act as a beneficial middle ground to assist in negotiations
>>>> and getting things moving!
>>>>
>>>>
>>>> Recruitment Rates
>>>>
>>>> Are recruitment rates too high? Well honestly yes they are fairly high
>>>> but we are running a business and as you can all understand we need to make
>>>> a profit!
>>>> Also people don't realise the amount of effort we actually go to in
>>>> providing a short-list. Many developers think I just simply called them,
>>>> sent their resume to the company and got a massive cheque. What they don't
>>>> realise is that to get that one person a job I had to look at over 400
>>>> resumes, speak to over 80 people and all for a 1/3 shot in actually filling
>>>> a position. I work 8-6 and I'm a fairly quick worker!
>>>> That being said yes some recruitment rates are too high and companies
>>>> need to be smart on who they use.
>>>>
>>>> Anyway if your looking for a recruiter who loves the Ruby community and
>>>> who actually cares about your career please give me a call. I won't screw
>>>> you over and I'm available after-hours with bookings and all conversations
>>>> are 100% confidential.
>>>>
>>>> [email protected]. 0404-590-975.
>>>
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>>
>>
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