Negotiating rate with agency

[blammo]

I've been contracting at a public sector organisation for 3+ years now (they classed me outside of IR35 last year.) and during that time I've been unsuccessful in securing any rate rise with the client during that time.

I've discovered by happenstance that the fee my agency are taking is on the large side, nearly 30%, and was wondering whether it's likely I could negotiate with my agency on them taking a smaller fee, say 15%.

What would be the best way of broaching the subject with my agency? Are they likely to just turn the request down flat?

[stek]

Are you aware of the 24 month rule?

[blammo]

Are you aware of the 24 month rule?

No, is it relevant?

[stek]

No, is it relevant?

Good lever for a rate increase if you have significant travel etc.

Bit late now though, best advice is to try but be prepared to walk.

[chicane]

What would be the best way of broaching the subject with my agency? Are they likely to just turn the request down flat?

If you're planning to just "broach the subject" (i.e. ask nicely) with the agency, they will almost certainly turn the request down, probably accompanied by a predictably canned answer as to why a rate increase is not feasible. "My manager won't allow it", "The client can't afford to pay any more", and so on.

The only way you'll normally get a substantial rate increase is to make it clear to the agent (whether truthful or not) that you have the opportunity of higher paying work elsewhere. The safest option (assuming that you're around 4-6 weeks from renewal) is to start looking for work - mark yourself as "looking for work" on LinkedIn, upload your CV to Jobserve and send out emails to all of the recruiters you've previously worked with and any others that have spammed you recently. Go to a few interviews and try to get an offer.

If you do get an offer from elsewhere, you don't necessarily need to take it, but it will give you the confidence to play hardball with the recruiter and find out whether they are able to accommodate a rate increase.

If you don't get any interest from elsewhere, perhaps you might just have to accept that you're being paid the current market rate for your skills - in this case you can either reluctantly back down and continue on the same rate, or join the bench when renewal time comes.

[VillageContractor]

If you're planning to just "broach the subject" (i.e. ask nicely) with the agency, they will almost certainly turn the request down, probably accompanied by a predictably canned answer as to why a rate increase is not feasible. "My manager won't allow it", "The client can't afford to pay any more", and so on.

The only way you'll normally get a substantial rate increase is to make it clear to the agent (whether truthful or not) that you have the opportunity of higher paying work elsewhere. The safest option (assuming that you're around 4-6 weeks from renewal) is to start looking for work - mark yourself as "looking for work" on LinkedIn, upload your CV to Jobserve and send out emails to all of the recruiters you've previously worked with and any others that have spammed you recently. Go to a few interviews and try to get an offer.

If you do get an offer from elsewhere, you don't necessarily need to take it, but it will give you the confidence to play hardball with the recruiter and find out whether they are able to accommodate a rate increase.

If you don't get any interest from elsewhere, perhaps you might just have to accept that you're being paid the current market rate for your skills - in this case you can either reluctantly back down and continue on the same rate, or join the bench when renewal time comes.

This