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Same client, new agency

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    Same client, new agency

    Hi,

    I've been with the client through agency 'A' for 2 years now. My client has offered another contract extension. Agency 'A' used to be the sole preferred agency for this client but, during a recent merger, agency 'B' has been introduced as another preferred agency and I've recently seen adverts for my role at the same client for up to 150% more than my rate - the market for my role has picked up.

    Presumably I'm legally entitled to do as I please once I'm out of contract but what are the ethics around switching agency to chase a higher rate? I've requested a rate increase from my agency before and got a clear 'no' (obv.) so I'm expecting that - and the client is not likely to move, should I approach Agency B and offer my services? What would be the best approach here?

    #2
    Your client will have a contract with the agencies which probably precludes you switching agents. Your own contract probably specifies a waiting period before you can go back the same client with a different agency. Your presumption is incorrect. It would be extremely unlikely that you can just switch.

    The second agency may be lying about the rate, but making the reasonable assumption that they're not, your only option with your current agency is to tell them if they don't get you more money (either by reducing their cut or getting more from the client - you don't care which), you'll leave. And be prepared to follow up your threat, It's called "negotiating". You can dress it up nicely with reasons for you to get such a rise, but ultimately it's down to who blinks first.
    Down with racism. Long live miscegenation!

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      #3
      Originally posted by dewonderful View Post
      Hi,

      I've been with the client through agency 'A' for 2 years now. My client has offered another contract extension. Agency 'A' used to be the sole preferred agency for this client but, during a recent merger, agency 'B' has been introduced as another preferred agency and I've recently seen adverts for my role at the same client for up to 150% more than my rate - the market for my role has picked up.

      Presumably I'm legally entitled to do as I please once I'm out of contract but what are the ethics around switching agency to chase a higher rate? I've requested a rate increase from my agency before and got a clear 'no' (obv.) so I'm expecting that - and the client is not likely to move, should I approach Agency B and offer my services? What would be the best approach here?
      Ethics is a county next to Thuffolk. Give the new agency a quotation and be prepared to negotiate.

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        #4
        I doubt very much that the client would pay considerably more for the same contractor on renewal simply on principle.
        I wouldn't bother changing the agency, simply request a reasonable rate rise from your agency at renewal. If you want a significant rise you need to go and get an offer from elsewhere. If you can't then you know you're on your market rate.
        I'm alright Jack

        Comment


          #5
          Thanks for the thoughtful replies. I'll check the contact but my hunch was my likely only choice was to negotiate with the option of leaving as the 'encouragement'. The client has specified they have a re-engagement clause should I want to return after up-skilling elsewhere - perhaps the best chance of changing agency and, with it, an increase in rate

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            #6
            The rates agents advertise != the rate they will pay.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by dewonderful View Post
              I've recently seen adverts for my role at the same client for up to 150% more than my rate - the market for my role has picked up.

              Then you should be able to find a contract offer elsewhere at the higher rate, then decide if you prefer to move or try to get current client to match it (or move significantly towards it) as part of accepting the extension.

              Alternatively apply for the same role at same client via this other agency and do both contracts at same client part time, and be 75% better off.

              For extensions if you can come up with a reasonable argument for wanting a rate increase then it makes sense to put that argument forward, and if you're genuinely not going to be happy on current rate then decide whether to force the clients hand by demanding an increase or you won't extend. How reasonable that sounds to the client may affect how likely they are to continue to offer the extension or any future ones.

              Depends whether you can survive without a contract long enough to get another if you don't have another offer on the table before risking losing the contract you do have, and potentially burning bridges with the current client so they won't ever want you back. It's not just about the money potentially on the table at the moment.
              Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

              Comment


                #8
                One of my clients put its contractors (myself included) through no less than four agencies over the 15 months I was with them, chasing an extra 0.5% off the bill or whoever paid the best backhander. Client ensured no rate changes.

                No ethics issue as far as I can see. What the client wants, the client gets. If they insist your renewal is with agency X over agency Y then any handcuff clauses are their problem to sort out. Saying that, I had those removed from my contracts so they were never an issue.

                The main downside was in subsequent referencing for roles elsewhere, trying to explain it was one gig, four agencies.

                Comment


                  #9
                  Definitely check your current contract wording, as it is likely to state that you cannot return to same client for x months unless you go through the original agent.

                  I had this scenario a couple of years ago and had to go with original agent upon return, which meant the returning area had to go through due diligence checks on them all over again, despite them being a 'preferred supplier'. I didn't mind though as they were a good agency and I was happy for them to get another lead into the clientco.
                  Last edited by kaiser78; 30 August 2017, 07:47.
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