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-   -   Agency not disclosing margin - 125K a year (https://www.englishforum.ch/employment/299156-agency-not-disclosing-margin-125k-year.html)

user 16.07.2020 09:36

Agency not disclosing margin - 125K a year
 
Hi.
First post.

I got an offer from a small recruiting agency for a data analyst role at one of the big banks. Contract is for 2 years with possibility of permanent hire.

The offer is 125K CHF pa gross. They do not disclose what the bank is paying them. Is this a red flag?

doropfiz 16.07.2020 18:15

Re: Agency not disclosing margin - 125K a year
 
I would not think it usual for any agency to declare their margin. After all, it is exactly in this that the agent makes money. The agency charges the client x, and pays the worker (x-y).

The client is prepared to pay the agency y to do the work of recruiting.
The worker is ready to be placed through the agency because the agency has contacts (and contracts) that the worker could not find alone, or cannot have directly.

Quite irrespective of how big or small y is, the worker earns x, because x is what the agent is willing to pay.

amogles 16.07.2020 18:23

Re: Agency not disclosing margin - 125K a year
 
If the bank could hire you directly for considerably less than they are paying the agency, I'm sure they would do so (all costs being considered, including cost of opportunity and admin hassle).

This sets a limit on how much margin the agency can make.

Chuff 16.07.2020 18:27

Re: Agency not disclosing margin - 125K a year
 
Quote:

Originally Posted by user (Post 3199426)
Hi.
First post.

I got an offer from a small recruiting agency for a data analyst role at one of the big banks. Contract is for 2 years with possibility of permanent hire.

The offer is 125K CHF pa gross. They do not disclose what the bank is paying them. Is this a red flag?

It's only a red flag if you feel you are not getting close to the salary you expect for such a position. Otherwise, why would it matter if you were being fairly paid?

lost_inbroad 16.07.2020 18:59

Re: Agency not disclosing margin - 125K a year
 
Quote:

Originally Posted by user (Post 3199426)
Hi.
First post.

I got an offer from a small recruiting agency for a data analyst role at one of the big banks. Contract is for 2 years with possibility of permanent hire.

The offer is 125K CHF pa gross. They do not disclose what the bank is paying them. Is this a red flag?

Of course it is not a red flag that's how it's done and the agreement between a potential employer and a recruitment agency is none of the employee's business. Generally speaking however, any employer will usually pay the sum equal to 3-4 monthly salaries. With different clauses, if you end up staying throughout the probationary period.

k_and_e 16.07.2020 19:46

Re: Agency not disclosing margin - 125K a year
 
Quote:

Originally Posted by user (Post 3199426)
Hi.
First post.

I got an offer from a small recruiting agency for a data analyst role at one of the big banks. Contract is for 2 years with possibility of permanent hire.

The offer is 125K CHF pa gross. They do not disclose what the bank is paying them. Is this a red flag?


The tricky part would be that you get a 2 year contract with option to be permanent. Temps generally get less benefits than permanent contracts, and given that people can be easily fired in Switzerland anyway, it could be a way for an employer to save costs.

amogles 16.07.2020 19:59

Re: Agency not disclosing margin - 125K a year
 
Quote:

Originally Posted by k_and_e (Post 3199591)
The tricky part would be that you get a 2 year contract with option to be permanent. Temps generally get less benefits than permanent contracts, and given that people can be easily fired in Switzerland anyway, it could be a way for an employer to save costs.

Sometimes it's just about beating one's own metrics.

I have worled for companies where metrics included things like productivity per employee or profit per employee. One easy way to get a quick win on that is to reduce the official employee headcount statistic by using as many temps and contractors as possible. Then some years down the road the metric changes and you hire them all back.

NotAllThere 16.07.2020 21:15

Re: Agency not disclosing margin - 125K a year
 
Do be careful. Sometimes the quoted "gross" rate is the rate including the employment expenses you'd normally expect the employer to pay - and the agency's payroll admin fee. Ask for a simulation payroll run so you can see how much net you'll get - then compare with a salary calculator.

Carapace 17.07.2020 10:42

Re: Agency not disclosing margin - 125K a year
 
125k for a temp contracting is very low. Unfortunately I sat in the same boat some years ago - i was working for an outsourcing company on a bigbank project.

The facts:
- Low salary (compared to a standard 800-900 CHF / day daily fee)
- No bonus
- No cafeteria package
- 20 vacation days

And of course, when the bank closed the project, they fired me immediately.
Optimal mix of the perm / temp disadvantages..
Never again.

bigblue2 17.07.2020 11:05

Re: Agency not disclosing margin - 125K a year
 
That's a pisstake rate for a contract.

As for not disclosing margins, pah, When I was contracting I always asked, and was always told, if a client is paying top money they expect top talent, if the agency is taking the piss everyone deserves to know.

eireann 18.07.2020 00:27

Re: Agency not disclosing margin - 125K a year
 
Quote:

Originally Posted by Carapace (Post 3199687)
125k for a temp contracting is very low. Unfortunately I sat in the same boat some years ago - i was working for an outsourcing company on a bigbank project.

The facts:
- Low salary (compared to a standard 800-900 CHF / day daily fee)
- No bonus
- No cafeteria package
- 20 vacation days

And of course, when the bank closed the project, they fired me immediately.
Optimal mix of the perm / temp disadvantages..
Never again.


Too true....my temping contract was around the going rate for an employee with none of the advantages. OP I also wasn't informed of the margin - if you're being employed on a per hour basis however, apparently they shouldn't quote an annual salary. I agree about asking to see how it will be broken down.


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