Agency to permanent - pay rise?

[Elsi3]

Hello all.

I have been working full time for a construction company through an agency for the last year.

They have now expressed an interest in taking me on as a permanent member of staff.

I currently earn £11.50ph which is the same rate that I started at as an untrained starter.

Does anyone know how much extra the company would be paying for me through the agency?

I intend to negotiate a pay rise as I have trained extensively over the last year and having a rough idea how much the company already pay for me would be extremely helpful.

Thank you!

Employers have additional costs to salaries that employees are often unaware of tbh. It's very hard to say how much more your company will pay the agency than your hourly rate but when you are employed by them, they will also pay employers NI and possibly pension contributions.

Thank you for your reply.

It's really hard to gauge how much I should be asking for. It's a really specific role (I don't want to say too much incase it's outing!) in a really specific industry so it's difficult to look at other salary's advertised etc.

You don’t have to compare a salary to equivalent niche jobs, you have to look at the value of the job when compared to others. So does it have the same value to them as say, a PA? Or a technician?

They may want to reduce the overall cost to them and probably won’t pay the agency rate so I’m not sure you can expect a huge uplift but I’d try and find some suitable comparison jobs and you know your current pay is a benchmark.

How much the company is paying the agency isn't relevant. Many of the additional costs the agency are incurring will be passed on to the employer anyway. The company will suddenly be liable for employer's national insurance, pension costs, other benefits, sick pay, management costs of employing you, and also the burden of risk involved in having the responsibility of employing someone rather than offloading those liabilities elsewhere.

But regardless of that, your hourly rate shouldn't be determined by something like that, it should be determined by the market and by your skills and experience and level of responsibility.

Thank you for your replies, they have been really helpful.

I guess the industry you’re in makes a difference but from my experiences in finance, agency staff normally take home more money than salaried staff (to compensate for the lack of benefits, job insecurity etc) and if they’re taken on permanently they’ll be doing well to stay on the same pay and a pay rise is extremely unlikely