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Recruiters get €25 per hour from government but pay €10 per hour to contract staff ?


patslatt

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Apr 11, 2007
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I've learned of two cases of apparently excessive profits of recruiters supplying contract staff to government. An acquaintance who gets home help for an elderly relative told me that the home help woman is paid only €10 an hour out of the €25 an hour her recruiter receives from the government. This woman has to use a car for her home visits in the country.

The second case was a pay cut from €15 an hour to €10 an hour for a contract translator I know,again a job requiring use of a car.

Possibly this latter cut was due to government cutbacks but the recruiter did not say so. More likely,the recruiter is exploiting the heavy unemployment among translators.

Opportunities for such excessive gross profit margins could also be due to the difficulty of complying with the typically complicated bureaucracy of bidding for government contracts. The civil service is so fearful of making a mistake in selecting contractors that it makes complicated rules which favour a minority of companies with the necessary expertise in navigating bureaucracy.
 
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dizillusioned

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Is the €10 euro an hour gross or net of tax, etc?
I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.
 

FreshStart

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I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.
I believe travel time is unpaid and if the person being cared for goes into hospital for a week or on holidays, the carer doesn't get paid.
 
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What Govt taxes like Employers PRSI / Holiday pay etc etc is the Agency required to provide for ?
 

Sister Mercedes

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I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.
I temped for a while in the 90's, at a fairly high per hour rate, and my agency got a much smaller proportion of the fee than I did. Perhaps there are economies for scale for higher rates, but even still the case above seems very inequitable. After tax, the person is only getting about 20% of the rate that the employer paid.
 

wombat

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A mark up of €15 on €10 is excessive by any standards, 20 to 25% is usual for engineering, depending on the overheads of the pimp.
 

'orebel

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A mark up of €15 on €10 is excessive by any standards, 20 to 25% is usual for engineering, depending on the overheads of the pimp.
It was pretty standard for labourers in the construction industry during the boom.
 

seabhcan

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Sep 3, 2007
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14,327
I've learned of two cases of apparently excessive profits of recruiters supplying contract staff to government. An acquaintance who gets home help for an elderly relative told me that the home help woman is paid only €10 an hour out of the €25 an hour her recruiter receives from the government. This woman has to use a car for her home visits in the country.

The second case was a pay cut from €15 an hour to €10 an hour for a contract translator I know,again a job requiring use of a car.

Possibly this latter cut was due to government cutbacks but the recruiter did not say so. More likely,the recruiter is exploiting the heavy unemployment among translators.

Opportunities for such excessive gross profit margins could also be due to the difficulty of complying with the typically complicated bureaucracy of bidding for government contracts. The civil service is so fearful of making a mistake in selecting contractors that it makes complicated rules which favour a minority of companies with the necessary expertise in navigating bureaucracy.
That level of margin is common with contract cleaners too. It's a scam.More generally, recruitment firms often demand a fee equal to 30-50% of salary. The employer pays it.
 

laidback

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What Govt taxes like Employers PRSI / Holiday pay etc etc is the Agency required to provide for ?
the agency is the employer of the temp and therefore liable for the things you mention. I wonder did the €25 ph charge to the state include VAT at 23% or was it net of VAT. the agency has to charge VAT.
 

wombat

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That level of margin is common with contract cleaners too. It's a scam.More generally, recruitment firms often demand a fee equal to 30-50% of salary. The employer pays it.
Sounds like there is quite an opportunity there for competition. I find the markup incredible.
 

DCon

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I wonder if there are links to the government agency/department out-sourcing work, and the Contracting company?
 

hammer

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Cut out the use of agency staff across all sectors of Government and you will save an absolute fortune.

Employ people directly on short term contracts instead.
 

DCon

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When Dell were at their peak in Limerick, I believe the wife of a HR director was running the company Dell was paying to provide temporary staff.

The Irish way
 

hammer

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That level of margin is common with contract cleaners too. It's a scam.More generally, recruitment firms often demand a fee equal to 30-50% of salary. The employer pays it.
Only idiots would pay so much.

15% use to be the norm.

Sure recruitment agencies in the Celtic Tiger years after placing someone would have no problem contacting the same employee within 6 months advising them of other opportunities that existed.

Wake up employers.
 

DCon

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Cut out the use of agency staff across all sectors of Government and you will save an absolute fortune.

Employ people directly on short term contracts instead.
But then friends of the government/former employees of the Agency/Department involved would not get easy money for having companies provide staff
 
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