A Guide to Understanding Those Recruitment Agencies' Temp Rates - Blog Image

A Guide to Understanding Those Recruitment Agencies' Temp Rates

  • Adrian Grundy
  • Thursday, July 11, 2019

Have you ever sat and thought to yourself WOW using relief staff from a Recruitment Agency is far to expensive? Well your not alone. Many people I have spoken to over my many many years of recruiting automatically say "We don't use Agency Relief Staff because it's far to expensive" my response usual goes 1 of 2 ways. 

1. I ask how they cover those days when everyone is unwell or have emergencies? and the response is always "we use our own relief staff" my response is always "thats perfect and I would always recommend that, however what about when that fails?". Many are stumped and I explain an agency is there as a back up to work in partnership with you not as an either or solution.  

or

2. I actually explain the make up of our rates. SIMPLE ! Once I explain this they realise that what we are making isn't the difference between the candidates pay rate and the rate we charge, its alot less AND you hiring your own relief would be ALMOST THE SAME. 

LET ME EXPLAIN

The rate we quote is ALL INCLUSIVE 
Don’t make the mistake of thinking that the difference between the rate being paid to the Educator and the rate charged to you is going into my pocket COS IT'S NOT. There are a number of on-costs that the recruitment agency needs to absorb before we make any money.

Specifically, these on-costs include:

  • Superannuation guarantee contribution (SGC) – 9.5%
  • Payroll tax 
  • Workers compensation - in our sector this is not cheap. 
  • Professional indemnity insurances
  • Public liability insurances 

and this is just the main ones. 

YOU PAY FOR WHAT YOU GET

Like the old saying goes you pay for what you get, it stands true in using an agency. I hear potential clients say all the time "Well X recruitment agency is offering much lower rates" and I always ask them how has your experience with them been? and almost 100% of the time I get told "well it hasnt been great" and that is why you are meeting with me.

Weigh up your options 

As a client you have to weigh up your options and think to yourself 

1. Is price all I am chasing? 

2. What do I value?

3. How important is reliability, fast turn arounds, vetted candidates that have been through a quality recruitment process and recruiters that understand my sector? 

Once you have answered these things you will quickly realise that in recruitment you ALWAYS pay for what you get. If you choose to go with an Agency that drops their pants to win business the chances are you will be knocking back on my door or another agencies door very soon with the same problems again and this time it potentially may have cost you more money in lost time or even worse your own clientele.  

I hope you have found this insightful and as always if you are looking to partner with the TRUE experts in Early Years Recruitment reach out to any of our team on 1300 020 364.