Advice to agencies - ten ways to keep IT contractors happy
Thursday, 27 November 2008
So what keeps contractors happy then? What makes them think of their agent as the perfect agent? They know that agencies have to make money, so they won’t be expecting us to put “Takes no cut” in our list. Here they are then:-
1. Pays on Time - This is the most crucial and has been borne out in survey after survey. Agencies have got to get the basics right and pay their contractors on time
2. Names Fee Up Front - It is very important for a relationship of trust between a contractor and his agency that the agency tells the contractor how much the agency is making from the contractor. If they refuse to say, saying that it is their policy not to tell, then there will immediately be suspicion from the outset. Contractors don’t mind the agency taking anything up to 20%. When it starts to get beyond that there is a problem.
3. No Spamming References - Except for the very gullible contractors who might cough up, there is an immediate suspicion when agencies phone up demanding that you provide references from previous jobs. As one agent told us “In 16 years of doing this job, I’ve never known one job where the company needs references up front”. I think that says it all. Normally it is agencies who are in desperate trouble who do this, so even of they get you a job through them (which is extremely unlikely) you may find that soon they won’t be able to pay you
4. No Fake Job Adverts - Don’t put job adverts on the job boards for vacancies that don’t exist. We had a recent example of a jobseeker who was perfect for the job, but was turned by the agent down five minutes after the job went up, as the salary that he was asking for was less than his previous salary. The agent didn’t even look at the rest of the CV, which he received whilst the jobseeker was on the phone. Agencies could also help by telling contractors and their employees when they have been rejected. I know it is a lot of work but a lot of it can be automated nowadays. You know that the people are going to call you anyway
5. Have Client / Customer Relationship - If agencies are making quite a lot of money from ‘selling on’ contractors, it would help if they took contractors out to lunch every so often. Other small gifts at Christmas time wouldn’t go amiss either, as well as an invitation to the Christmas party. An invitation to have dinner at the agent’s house often goes down well, even if not taken up, as it shows that the agency considers the contractor to be an important client and not just a ‘body’. Agencies that don’t do any of these appear like cheapskates – and ungrateful cheapskates as well
6. Keep Out of Hair - There are some contractors who want their agency to keep in touch every so often, calling them to see how things are going (and if the company is looking for anyone else). Unless you are coming loaded with goodies, most contractors prefer agencies to leave them alone during the contract
7. Reduce Cut at Renewal - Although contractors know that it takes a lot of work for agencies to get someone a job in the first place, they also know that it takes little effort to tie up a renewal of a contract. It therefore strikes them as fair play if the agency were to take a slight drop in their rate at each renewal as it is easy recurring business. The contractor has done a good job for the agency with their client and should be rewarded for this. It is even more crucial for the agency to do this if the client is not going to give the contractor a rise in rate
8. Pay Commission - There is no reason that an agency shouldn’t pay a contractor commission if the contractor gives the agency a tip-off that someone is looking for contractors, and the company subsequently takes someone on from the agency. Many agencies pay a one-off bonus to contractors, but it would be better for the agencies if they had a whole army of ‘scouts’ out there tipping off when a prospect comes up. They are far more likely to do this if they are to share in the profits. Very few contractors are that interested in that one-off bonus, but would be interested in recurring income from their business
9. Tax Friendly Contracts - The Government is trying to make IT contractors pay a whole lot more in tax. They consider them to be ‘disguised employees’ rather than in business in their own account. Agencies should take advice form their own legal advisers on how to make their contracts as tax-friendly as possible, rather than being prompted by the contractor to do it
10. Take Out Restrictive Clauses - Many agencies have a clause in their contract that prevents the contractor from approaching the client for any more business whilst they are under contract to the agency. Moreover, many of them have restrictive clauses preventing contractors from approaching the client for a period of up to a year afterwards. This is one of the major reasons why contractors are not able to turn their limited companies into real small businesses. They don’t bother keeping their ears open for opportunities. It would be much better for the agencies to make some sort of agreement beforehand with the contractor so that the contractor and the agency can gain if the contractor finds more work (e.g. quotes for a project or area of the system) from the client
I’m sure there are several others and please feel free to tell us about them, but we feel that these are amongst the main ones. If agencies were to do all of these things then they would have a lot of happy contractors on their books – and almost certainly a lot more business too.
This article originally appeared on the British contractor's website NamesFacesPlaces.
Gerry McLauglin
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10 CommandmentsI notice, the 10 “commandments” are from a British contracter’s website. So, still a country on this globe. I am wondering: WHY ARE THESE AGENCIES DOWN HERE SO BLOODY FALSE?!!! …these greedy bastards. Ken, 11/26/2008 03:06:06 PM
So basically...So basically act in an honest, open, accountable way, with integrity, all the things that businesses should already be doing. But then again, recruitment is primarily a sales role, a recruiter sells their services to the end customer, a recruiter sells their services to the contractor, and like all sales roles it does attract weasels. anon, 11/27/2008 12:24:27 AM
transperency11. Recruiters need to be transperent in the amount the client pays them. I have known they can make up to 60%, eg $1200 daily when the contractor gets $400 daily, this is clearly fraud. I stumbled acress microsoft project and had administraitor rights to see the budget for each member and was shocked at what the client was charged against what the contractor got. sd sid, 11/27/2008 08:55:52 PM
some dishonest aencies..****Editor: Can't put this info on here sorry. Vote for agencies you like/don't like on the agency survey Aldo, 11/27/2008 09:03:51 PM
Yeap I've seen thatsid, I have seen that myself. The scary thing was the figures you have given here where almost identical to me, so I even wonder if it was the same agency. Needless to say, the second I found out the true value of me being there I up and left, also it was no wonder they offered me a 10% payrise the second I asked for one a few months earlier. anon, 11/27/2008 09:50:01 PM
400 p/h???Who the hell contracts for 400 p/h??!! That's the problem, really. The whole market here is ******* up. Too many kids around working as contractors, creating a market for these hideous agencies. Junior people should work in an IT company as employees, and let the contracting be done by us experienced professionals - who don't need any good for nothing, agencies. This thick "middle man" goo you have over here is not good for IT professionals and not good for clients. This is why IT is such a commodity in Australia. Bottom line, it's the uneducated Australian managers who don't understand that IT-work takes skill and experience. You can't just bring in an independent kid just because you can charge him less. It takes skill! But the byers are so unskilled themselves and know nothing about anything, so they have created this ridiculous market by being clueless and lazy enough to use Agencies (who are even more clueless). Agencies have no concept development or knowledge base at all - they are simply the sum of a bunch of unexperienced junior contractors. There is really no reason at all to use an agency - they don't add any real value what so ever - to anyone. If you need your admin done, you hire an accountant. That's it. If you can't do the rest yourself - then you are not senior enough to work on an individual basis. Period! Paganini, 11/28/2008 03:13:18 AM
Where world to becomes?All happening in Bangalore! Hawkwind, 12/04/2008 10:51:29 AM
Losers allMeanwhile doctors are treating increasing number of patients for depression after they've been fired. You're all losers - I've never been busier. Gloomyshoes, 12/04/2008 08:36:28 PM
Busy?Busy doing what, Gloomy? Shuving termometers up peoples asses? Because that's what you'll be doing for the first couple of years. Oh - they didn't tell you? Bummer! Me? I'll be spending my time in the board rooms. Picasso, 12/04/2008 09:12:36 PM
not happyThis site has a new owner. What about the financial crises and the IT down turn and its effects on Australian workers. This site looks like its biased towards Recruiters. Also noticed no negative topics about the IT industry any more. sd sid, 12/04/2008 09:34:57 PM
The PanelBABBLE, BABBLE, BITCH, BITCH Hawkwind, 12/06/2008 06:10:50 PM
RemovedThis comment was removed as it contained offensive content. sid, 12/08/2008 12:06:23 AM
sidWhy don't you read the posts instead of of being a dumb-assed loser parrot? Hawkwind, 12/08/2008 06:51:49 AM
Goes easyEasy one mates. Best to be civilisations to selfs for better holiday cheers. Relaxation bring and positives bring better '09. GL Great Leopard, 12/08/2008 07:47:56 AM
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