Anonymous:Reality check 
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 Anonymous:Reality check

The fact of the matter is that "Consultant" companies are no different from
salaried employment recruiters: they match up a worker with a company.  As
such, they are entitled to a "finders fee". Just as a full-time placement
firm takes a one-time fee for this service, so should a consulting company.
 A headhunter does not take 20% of an employees paycheck every 2 weeks for
the duration  of the time that the employee works for that company....how
is a consulting company any different ????????

If they wanted a $5000 fee for finding me a contract I would be more than
happy to kick-back a percentage of my paycheck every two weeks until I hit
$5000 but then they should GO AWAY !



Quote:

> *
> * Suppose the recruiter's margin is $20/h (quite reasonable, isn't it?).
> * 2000h/year makes 40k. My recruiter recruites 20 programmers now.
> * Doesn't it make 800k? Oh, yes, indeed, minus his expences...

> $20/h is NOT a reasonable margin (unless we are talking about very top
> dollar assignments). Also, do not forget that it is a gross margin,
> and recruiters (body shops) have certain costs, such as cost of
> recruiting activities, taxes, rents, support people, legal expenses,
> cost of working capital, benefits that they provide to people who work
> for them, and much more.

> As almost any business without any long term competitive advantage,
> most brokers are not making much. And if they were, the number of such
> body shops would quadruple overnight.

> igor



Thu, 19 Aug 1999 03:00:00 GMT  
 
 [ 1 post ] 

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