This is my first time being a contractor in NYC. After working 2 years out of college, I made a huge career jump into a different industry somewhere near financial district, one of the big threes. This company is known to usually hire back their contractors as a full time employee if they perform well at the end of the 12 month duration (most of my friends and senior colleagues were hired this way).
I was speaking and sorta joking to my manager about how I took a pay cut to come here because I loved this company so much, but lunch in our area is so expensive and at least half my hourly paycheck. Then, she suddenly goes, don’t you make $70 an hour, lunch can’t be that bad? And I paused.
I went, no I make $35. And she was so confused. She said the agency invoice total sum requested from the annual budget for my 12 month role working 40 hours a week resulted in $70 an hour.
I was FLOORED. I told her I guess the agency takes a 50% cut and she realized she messed up and quickly changed the topic.
Is this normal?? I know recruiting firms will take 25-30% but 50% is A LOT.