Employment agencies and umbrella companies

[Mr $quandaŁot]

I apologise if I am sounding a bit negative when it comes to employment matters but I haven't had many good experiences recently.

You may ask why I just don't go and get a permanent job. Well, in my industry it's not that easy. Many clients prefer to work on a project basis and like flexibility ie easiness of getting rid of contractors and lack of commitment on their part.

There are, of course, many pros about contracting such as not having to get involved in office politics attend team building days etc.

Having said that, I'd rather have a permanent job or a long-term contract than few weeks of rebranding.

Recruitment agencies are getting worse day by day. Why so many companies use them in the age of google is a mystery. I once had a contract in HR and in all honesty, I didn’t have a clue what most people were doing!

Many agencies no longer run their own payroll but instead ask you to form a limited company or use an umbrella company. Some contractors claim this is beneficial. However, from my personal experience, this is an unnecessary intermediary yet again and may actually complicate tax affairs, depending on how good the umbrella is. You also have to pay a fee to your umbrella, so it's not worth taking a day's or two's ad hoc booking.

Umbrella's can be useful in IT where day rates may reach thousands but with an admin booking paying Ł100 a day is just not worth it.

I'm now even more convinced that I must leave the UK as soon as practicable. All this headache of having to chase payments due to lack of communication between the agency and umbrella is pissing me off big time!

[teaboy2]

Re: Employment agencies and umbrella companies

I apologise if I am sounding a bit negative when it comes to employment matters but I haven't had many good experiences recently.

You may ask why I just don't go and get a permanent job. Well, in my industry it's not that easy. Many clients prefer to work on a project basis and like flexibility ie easiness of getting rid of contractors and lack of commitment on their part.

There are, of course, many pros about contracting such as not having to get involved in office politics attend team building days etc.

Having said that, I'd rather have a permanent job or a long-term contract than few weeks of rebranding.

Recruitment agencies are getting worse day by day. Why so many companies use them in the age of google is a mystery. I once had a contract in HR and in all honesty, I didn’t have a clue what most people were doing!

Many agencies no longer run their own payroll but instead ask you to form a limited company or use an umbrella company. Some contractors claim this is beneficial. However, from my personal experience, this is an unnecessary intermediary yet again and may actually complicate tax affairs, depending on how good the umbrella is. You also have to pay a fee to your umbrella, so it's not worth taking a day's or two's ad hoc booking.

Umbrella's can be useful in IT where day rates may reach thousands but with an admin booking paying Ł100 a day is just not worth it.

I'm now even more convinced that I must leave the UK as soon as practicable. All this headache of having to chase payments due to lack of communication between the agency and umbrella is pissing me off big time!

Mr $quandaŁot - The thing is, if you work as an agency worker for 12 weeks or more at one employer, you then get full time employee rights. So a lot of agencies are looking at ways round that, and what is better than telling you to set up your own company, where instead or being a worker, you would be classed as a contractor whom the employer has contracted the work out too, with the middleman being the agency.

Simple solution is to not work for agencies full stop.

You say you work in IT industry, so why not just set up your own IT services company and offer your services to companies directly, where you can set your own prices and labour costs. Don't say, you can't afford it, because a lot of companies will pay for physical equipment up front if need be, and you don't need to pay for advertising, you got facebook, and your own two feet (i.e. go to local businesses in person) or use your phone, to market your business. I had less than Ł10 when i started my business in 2009, so theirs no reason why you can't do the same. if you need funds to start up, theirs plenty of organizations, you even have kickstarter and similar websites.

To start a business, you need to sell yourself, and that means not being negative or holding onto past bad experience, as that only holds you back.

[Mr $quandaŁot]

Re: Employment agencies and umbrella companies

Teaboy, I work in DTP / presentations, not in IT as such though many industries are now IT related one way or another.

What's holding me back is lack of volume. It is very hard to convince most clients to use direct contractors. I have asked some of them why they don't do it, especially if they complain about some recruiters, and they haven't really got an answer apart from saying 'it's a bit of like using an estate agent'. Old habits die hard.

Many do come back to you directly once you have worked for them through an agency. Of course, this is not something that recruiters like but if you have opted into the EEA 2003 regulations, clients can use you directly after a shortish period (I think it's eight or twelve weeks).

If you are silly enough to opt out of the above regulations, then agencies are free to add their own clauses such as banning you working directly for the client for twelve months or so.

Thankfully, some smaller firms have realised that recruitment agencies don't add much value and have started to hire directly. We still have a long way to go.

Agency Worker Regulations (AWR) were introduced to help temps and contractors. I'm not so sure if they have helped, they appear to have made things worse.

[teaboy2]

Re: Employment agencies and umbrella companies

Teaboy, I work in DTP / presentations, not in IT as such though many industries are now IT related one way or another.

What's holding me back is lack of volume. It is very hard to convince most clients to use direct contractors. I have asked some of them why they don't do it, especially if they complain about some recruiters, and they haven't really got an answer apart from saying 'it's a bit of like using an estate agent'. Old habits die hard.

Many do come back to you directly once you have worked for them through an agency. Of course, this is not something that recruiters like but if you have opted into the EEA 2003 regulations, clients can use you directly after a shortish period (I think it's eight or twelve weeks).

If you are silly enough to opt out of the above regulations, then agencies are free to add their own clauses such as banning you working directly for the client for twelve months or so.

Thankfully, some smaller firms have realised that recruitment agencies don't add much value and have started to hire directly. We still have a long way to go.

Agency Worker Regulations (AWR) were introduced to help temps and contractors. I'm not so sure if they have helped, they appear to have made things worse.

If the issue is volume, then my advice would be to come up with something different that you can offer, that is not usually by others in the same field. Be creative, what do companies usually need that can be done by you, but are currently done by say graphic designs companies, marketing/advertising companies and etc.

You need a package to sell, as selling something that a company could basically do themselves in-house is not going to sell.