fellow contractor on higher rate then me

[AnotherGuy]

Sorry to refloat this rather old thread, but I did a search and I came up with this as similar to my situation.

I've been poached by another agency, with the same client, on a higher rate (~15%) and I know for a fact the client is going on a hiring rampage, several of the roles identical to mine, for a few ongoing projects and new ones about to start, which probably explains the higher rate (skills shortage, deadlines to meet, whatever...)

My current contract is about to end and will be getting an extension to sign anytime soon, probably in the next 1 or 2 weeks. The chance of this is 99% given the need for resources.

Given this information, would it be wise to ask my current agency for a rate increase (and if so, when? before or after getting the renewal to sign), to go with the other agency once my contract ends (risky and maybe not possible), or to just stay put, just knowing all new contractors sitting around you in the following weeks are on a higher rate (and doing the very same as me).

Thanks.

[northernladuk]

A while host of things to consider here. Firstly it's pretty underhand of an agency to poach you for the same client. Am sure your handcuff wouldn't allow a move and the client should be pretty unhappy his agencies are poaching like this. Try not to get involved. It won't end well.

The fact they are trying to poach you means they have to offer something better which would be a higher rate. I wouldn't be surprised at all if this is a lie just to get you interested. If you weren't sign I'd bet my last dollar that the rate would suddenly drop back to something like what you are on. Don't be mislead by agents being liberal with the truth to get you interested.

So we get to the situation where you don't really know if they are on more or not. To be honest it doesn't really matter. Your rate is your business and up to you to increase. So.... Yes you do approach the agent for a rise. Not because the others are on more but because the agent has made his money and reasonable to expect his margins can be lowered.

First off you need to know if he's on a fixed percentage. You should have found this out right at the very beginning. If he is there is little you can do. If he's not then tell him as soon as possible you have other opportunities out there and would require an increase of £XX per day to stay. Make it a reasonable number. I've no idea what you are in and what to scope of increase is but you are normally eating in to his margin so it won't be a lot.

Stick it to him and make it clear it's what you want or you are gone. Don't namby pamby around asking him. He deals with this all the time and is very experienced. He can sniff a Chancer a mile off so unless you go in hard you will lose.

[AnotherGuy]

A while host of things to consider here. Firstly it's pretty underhand of an agency to poach you for the same client. Am sure your handcuff wouldn't allow a move and the client should be pretty unhappy his agencies are poaching like this. Try not to get involved. It won't end well.

The fact they are trying to poach you means they have to offer something better which would be a higher rate. I wouldn't be surprised at all if this is a lie just to get you interested.

Sorry I didn't express myself well.

The agency who contacted me didn't know at first I was already with the same client. Also, they need more than 1 resource, all of them at said higher rate, which is why I don't think they are trying to trick me, but instead could be one of the following possibilities:

- A genuine client-side rate increase to attract talent due to several projects kicking off.
- My agency getting a higher cut than this other agency (no idea, no proof).
- This other agency playing a bait and cutting the rate at a later stage (not unheard of).

[northernladuk]

You've put agency advertising at a higher rate below the client upping their rate card. The first happens nearly every gig, the second very rarely happens.

Whatever the case is the only thing you can do is stuck it to agent and see if he gives you something.