rate reduction after interview

**LondonManc** · 16 August 2018, 10:23

Originally posted by tomtom View Post

My agency sent my CV to a client with a rate. After interview, the agency told me the client is willing offer but thinks that the rate is out of budget and wants a rate reduction. I am wondering if the agency or the client wants to cut my rate. This is the first time to happen to me.

Two most common options. Either you're not as good as they're expecting for that rate or that rate was never on offer and the agency has lied to you about the rate all along to get you to interview. If they've asked you your minimum rate as part of the original call and talked about how low you'd go, it's more likely the latter. Another option is that the client could be trying to low-ball the agent and the agent is passing some or all of that low-balling down the line. Stand firm, say that you wouldn't have attended the interview if it was for the lower amount and see what happens (unless the lower rate is acceptable and you're currently on the bench).

**northernladuk** · 16 August 2018, 10:25

How much are we talking? A few 10's of pounds or 50+?

First thing you should do when sorting a gig out is find out if the agent is in on fixed commission and try and get it in writing. If they are they will be pretty upfront about it. If it is fixed then it's not the agent trying to scam you, it will be coming from the client.

If they aren't on a fixed agreement and it's a few 10's of pounds it's almost definitely the agent trying to scrape a couple of extra quid to line his pocket.

If it is you've got a two options.

First and easiest is if you are no good at negotiating, are happy with the new rate and don't want to rock the boat you accept.

The other is to negotiate hard. Note it has to be hard. You are going to have to refuse and tell them you aren't interested. Original rate or you won't accept. Problem is agents do this for a living and they've seen every wet attempt to push back so they'll know if you are bluffing. I suspect they've tried it on as they've already decided you are a bit of a soft touch so might be even harder.
Remember you are in a strong position though. Client wants you and the agent is going to make the money he wanted, he's just being greedy. Saying no means they have to go back to the client and basically lie to them why you don't want the gig and they get nothing until the second place guy comes on board so you hold all the cards really.
You've just got to convince the agent you're serious and he'll most likely fold.

There is a slight chance the client might be dropping the rate, I've seen it happen when a client likes the candidate but he didn't fit the role we wanted but again, we dropped it by over £100 to a lesser rate, not a few 10's.

Ball is firmly in your court now.

**Cirrus** · 16 August 2018, 10:36

Don't read too much into it.

I was at a global financial services organisation. I interviewed someone with a good CV and he came across well, so I said we should offer him the job. Whoever was managing this recruitment round (there were others involved) then said we would have to offer him a lower rate. I wasn't sure whether there was some mix up eg over VAT or just the FD never actually approving the budget - the place was totally dysfunctional and my boss was an idiot. There was nothing devious or intentional in any of this; just the insanity of ordinary, everyday mega-corporations.

The candidate declined, unsurprisingly.

**northernladuk** · 16 August 2018, 10:40

Originally posted by Cirrus View Post

I was at a global financial services organisation. I interviewed someone with a good CV and he came across well, so I said we should offer him the job. Whoever was managing this recruitment round (there were others involved) then said we would have to offer him a lower rate. I wasn't sure whether there was some mix up eg over VAT or just the FD never actually approving the budget - the place was totally dysfunctional and my boss was an idiot. There was nothing devious or intentional in any of this; just the insanity of ordinary, everyday mega-corporations.

The candidate declined, unsurprisingly.

This is a very real possibility and I've seen similar but I think experience tells us a vast majority of cuts after interview are from the agent. It's something the OP needs to investigate and make a judgement call on. There is no standard way to deal with the situation.

**LondonManc** · 16 August 2018, 10:51

Originally posted by northernladuk View Post

This is a very real possibility and I've seen similar but I think experience tells us a vast majority of cuts after interview are from the agent. It's something the OP needs to investigate and make a judgement call on. There is no standard way to deal with the situation.

It could also be the agent trying to demonstrate to the client that they can't get what they want for the money on offer - "you're not going to get what you want for £300, but here's someone who will do the gig for £400". I've had my time wasted in a similar manner.

**tomtom** · 16 August 2018, 10:57

The agency said the rate they told me is the max the client offers. Now they came back to ask me if I am flexible. The client asked me the rate I want in interview, I just said the agency takes care of this. Generally they shouldn't ask me this question. I suspect they want to know if the agency overcharges.

**uk contractor** · 16 August 2018, 11:08

Few years ago one of the top 3 investment banks in London offered me a job in the actual interview as I was exactly who they were looking for team fit wise. The agency then backtracked their initial verbal offer by £20 a day thinking I would accept the lower offer due to market conditions. I declined as I know my value but they told the bank otherwise and I just trying to get more from them! All for the sake of £20 a day FFS! (20 a day then equated to around 550 a month extra due to the way travel expenses were deducted & HMRC FRS bonus). This bank was also one of the usual culprits who enforce rate cuts after a while so no way was I going in lower than agreed when a rate cut would appear sooner or later so I told them to stuff it where the sun never shines.

**GreenMirror** · 16 August 2018, 11:12

"the rate is out of budget". Was it you or the agency who suggested that rate?

**northernladuk** · 16 August 2018, 11:12

Originally posted by uk contractor View Post

Few years ago one of the top 3 investment banks in London offered me a job in the actual interview as I was exactly who they were looking for team fit wise. The agency then backtracked their initial verbal offer by £20 a day thinking I would accept the lower offer due to market conditions. I declined as I know my value but they told the bank otherwise and I just trying to get more from them! All for the sake of £20 a day FFS! (20 a day then equated to around 550 a month extra due to the way travel expenses were deducted & HMRC FRS bonus). This bank was also one of the usual culprits who enforce rate cuts after a while so no way was I going in lower than agreed when a rate cut would appear sooner or later so I told them to stuff it where the sun never shines.

Did you contact the client and tell them exactly what had happened?

rate reduction after interview