Agencies are taking your hard earned money/Chapter 02 of 04
02 — The extraction problem
The extraction problem
Many organisations are forced into high agency spend because they need urgent staffing cover and compliance confidence.
Netvett Editorial
Netvett Editorial
Workforce policy desk
Opacity is the problem. Even when the price is fair, the absence of explanation undermines trust.
Why the model persists
any organisations are forced into high agency spend because they need urgent staffing cover and compliance confidence. In that urgency, pricing is frequently opaque and expensive.
The result is a double loss: organisations carry unsustainable costs, and professionals do not receive the full value created by their labour.
Where the value goes
In a typical hourly arrangement, an organisation may pay £35 per hour for cover, and the professional may receive £18 per hour after intermediary margins. The £17 spread funds compliance, finding work, and intermediary profit — none of which is visible to either party.
In permanent recruitment, the typical 20–25% of annual salary fee covers a similar set of services, but compresses them into a single transaction with a single beneficiary.
Netvett · Agencies are taking your hard earned money
Transmission complete · Chapter 02 of 04