You really want a piece of London/Banking ?

[Montyuk]

Oliverson your experience in ib is not everyone's experience.

You had rate cuts and could have said no...they even would have not cut you or got rid of you. There are contractors who are paid well, say no and don't get cut.

Clients can be a big pain but if they value you they will bend over backwards to keep you.

[oliverson]

Oliverson your experience in ib is not everyone's experience.

You had rate cuts and could have said no...they even would have not cut you or got rid of you. There are contractors who are paid well, say no and don't get cut.

Clients can be a big pain but if they value you they will bend over backwards to keep you.

If only it was that simple. There's a lot on here who seem pretty naive with quotes along the lines of "just add 10-20% on your rate", "tell them to stick the cuts or walk", but the reality is very, very different. Unless you have a large warchest you're just not going to do any of the above. Most people just accept the cut and look for something else. 90% of your old rate is better than 0% and sat on Jobserve every day looking for work with the others who've made a decision with their hearts, not their heads.

Granted, there are some contractors so woven into the fabric of the place that they are in a strong position and can refuse the cut. For now. In the end the business always has the last laugh.

[jmo21]

Never had a rate cut in 7 years contracting, never worked in an IB though.

I've never had to leave a contract other than it coming to a natural end either.

So I would find it very strange to be hit with an ultimatum of take 10% cut or leave.

Trying to imagine it here with my current role. Enjoying the project, decent people and techs. Only downside it's an hours drives, which is the longest I've ever had to do.

I *think* I'd probably swallow the cut, but immediately start looking for a new contract, with a view to handing in notice as soon as I've got something lined up.

[oracleslave]

I *think* I'd probably swallow the cut, but immediately start looking for a new contract.

Never had one forced on me in my contracting career but think I'd do this should it happen.


When a permie delivery manager, I once had a client enforce a 10% cut on all bods I had on site (which was 27) but given the consulting margins to start with I just swallowed this and moved on.

[BlasterBates]

Usually the thought of going for interview after interview after interview, and all the tests you have to go through puts people off storming out.

At the end of the day they know when they finally land the next contract they'll probably face a cut there too.

[ChimpMaster]

I fell out of IB a few years ago, and things have only become better. As I see it, the City is only now good for those in front office functions. Back and middle office are utterly depressing and have been for many years now, with frequent rate cuts and large scale offshoring (with associated back-handers to senior management...).

I despised seeing offshoring replace dozens of contractors and staff at my last tenure at a City institution. I enjoyed working there and gave them great value for money - especially when compared to the offshore bods. But now, for now, my rate outside of banking (and outside of London) is something like 30% higher and I am valued more for the services and experience I provide. And yes, I was on a pretty decent rate when at the IB.

So I would agree with OP. City contracting was great in the 90s and early 2000s but it's now a dull, depressing, unimaginative environment to work in. To think, I actually loved working there and as a professional I gave it my all - but now, I don't think I'll ever go back there for work.

[Montyuk]

If only it was that simple. There's a lot on here who seem pretty naive with quotes along the lines of "just add 10-20% on your rate", "tell them to stick the cuts or walk", but the reality is very, very different. Unless you have a large warchest you're just not going to do any of the above. Most people just accept the cut and look for something else. 90% of your old rate is better than 0% and sat on Jobserve every day looking for work with the others who've made a decision with their hearts, not their heads.

Granted, there are some contractors so woven into the fabric of the place that they are in a strong position and can refuse the cut. For now. In the end the business always has the last laugh.

A contractor surving a rate cut is not always to do with being woven into the fabric. If that's what you think yo are wrong. A contractor can have the last laugh, and yes they can see be asked to cut many times and keep saying no...and you know something when it came to renewal offered more money to stay.

The reality is contractors can be paid good money, can be asked to cut time after time. They can say no, and the client backs down because they realise the contractor will walk, and they know their skills are worth keeping. They also know that some contractors will say yes. If a contractor doesn't take a cut and they stay it might just be because they deliver, they are good at what they do. Their reputation is what keeps, and to be honest it's not good to be in one place for more than two years.

[SussexSeagull]

Has no one every thought of organising a mass refusal next time an across the board rate cut is 'offered'?

[kaiser78]

Has no one every thought of organising a mass refusal next time an across the board rate cut is 'offered'?

How would you see this working then ?

[BlasterBates]

Has no one every thought of organising a mass refusal next time an across the board rate cut is 'offered'?

Assuming all contractors were to refuse a rate cut, since the they want their budget cut by 10% that would mean a cull. since it's expected that some contractors leave the cull would probably be higher than 10%. The thing about a budget cut is that it's non-negotiable. Most contractors prefer a cut to a cull.

But it never gets anywhere and any ringleaders caught trying this on I suspect would probably be in any case be walked off site.

This does get regularly discussed in the banks when the rates cuts get imposed, but at the end of the day it'e every man for himself.