Question to all, how much do agencies make off of us. Im trying to negotiate my same rate and accept the 2 week furlough, as i see the furlough is not in their hands. So is it possible. I told them i will leave and now they want to meet with me for breakfast on friday to discuss options. but they told me already that their margins are so small that if they keep me at the same rate they will be essentially paying bank of america to keep me employees and loose money business wise. Is there room in their margins to keep me at the same rate?
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Simple take the position of strength.. i've seen it happen a few times. The agencies try to strong arm you they are making about 60-70% more than you and obviously they have things to pay such as SS/Medicare/Unemployment to pay out of that plus any other benefits. But they are still making a pretty penny to do really nothing other than pay you. If you leave this is money they will not make, once you leave your position has to be re-approved and in this environment they are not approving positions. Assuming they do approve a position its not over night and its possible they may not land the same contract.
From what I've seen the furlough is something that can be negotiated potentially with your manager on an organizational needs basis, there is a process that the manager can appeal. The rate will have to be negotiated with your agency, and for a select few they may be able to work with you by sharing the load of the decrease. Obviously they were blindsided by BofA too and their expected profit on you being there is being reduced if they don't push it down to you. Depending on your role of you threaten to walk they might be able to budge on the rate. The information from the previous poster is accurate.
If you came through the Pontoon program (CLP or VMS programs) there is a fixed mark up that all vendors must agree too that can not exceed 35% of your pay rate. Pontoon then takes .9861% to cover their cost and that is considered a "Volume Discount". I have worked on both sides (BoA and agencies) and this is standard agreement for all companies unless the agreement is an SOW... Hope this helps...
This is impossible to know without specific info on your role, your agency and your contract. It is very possible that the agency is making loads of money off you per hour and it is possible that they are making no money off you because of benefits they provide you come out somewhere.