15% rate cut.

[polarbearuk75]

Hi
I am currently working as a Project Manager for a bank based in the UK. My contract is inside IR35 and I have just received a renewal offer for six months. However, the offered rate is lower than what I was previously earning with them in 2021. I had worked with them on a six-month contract before, followed by a nine-month break, and then a three-month contract.

I have noticed that the bank tends to offer lower rates around Christmas time. I was wondering if others have experienced the same thing and what would be the best approach to push back. I understand that the current job market is not great and a six-month contract is still good, but the offered rate is 15% lower than my previous earnings. It seems like a significant cut.

Thank you.

[JustKeepSwimming]

Hi
I am currently working as a Project Manager for a bank based in the UK. My contract is inside IR35 and I have just received a renewal offer for six months. However, the offered rate is lower than what I was previously earning with them in 2021. I had worked with them on a six-month contract before, followed by a nine-month break, and then a three-month contract.

I have noticed that the bank tends to offer lower rates around Christmas time. I was wondering if others have experienced the same thing and what would be the best approach to push back. I understand that the current job market is not great and a six-month contract is still good, but the offered rate is 15% lower than my previous earnings. It seems like a significant cut.

Thank you.

I'm not aware of rates being changed depending on time of year. It's the nature of the market. I've seen about 20% cut this year across multiple banks, reclaiming the increases seen in 2022.

To clarify, the renewal is 15% less than your current contract rate? If so you are in a better position to pushback. They might be trying their luck, or they might be under orders to cut everyone 15% on renewal. If it's the latter you're screwed, if it's the former you might have to play chicken.

[Fraidycat]

Hi
I understand that the current job market is not great and a six-month contract is still good, but the offered rate is 15% lower than my previous earnings. It seems like a significant cut.

In previous downturns 20% cuts were the norm. So 15% doesn't sound so bad.

Although there is a chance they could impose another cut in six months time..

[avonleigh]

Worth arguing against it. But I have had a similar rate cut before, can't remember exactly how much but think it was also 15%. Normally when they do this it's across the board. So more than likely you won't be able to do anything about it.

[JustKeepSwimming]

I've just had an approach for a role that is 12.5% less than 9 months ago.

Same agent as last time, he even prefaced it by saying rates are down across the board.

[PCTNN]

Hi
I am currently working as a Project Manager for a bank based in the UK. My contract is inside IR35 and I have just received a renewal offer for six months. However, the offered rate is lower than what I was previously earning with them in 2021. I had worked with them on a six-month contract before, followed by a nine-month break, and then a three-month contract.

I have noticed that the bank tends to offer lower rates around Christmas time. I was wondering if others have experienced the same thing and what would be the best approach to push back. I understand that the current job market is not great and a six-month contract is still good, but the offered rate is 15% lower than my previous earnings. It seems like a significant cut.

Thank you.

Accept the new rate (original - 15%)
Find another contract at a rate you're happy with.
Tell current client to either give you original rate + 15% or you leave.

When they agree to give you original + 15% leave anyways to teach them a lesson.

[northernladuk]

Forget what you used to earn. That's irrelevant. They will chop and change their rates to suit the market and other things over time so hanging on to comparisons from previous engagements isn't going to help.

So the situation is you've come to the end of a piece of work for £X and the new piece of work is £X -15%? Not uncommon. Roger Sinclair from Ergos was is used to track rate cuts and they were a lot more common than you think. I can't actually find the page now so maybe they've taken them down.

The only way you are going to challenge this is to be prepared to walk. If you complain and ask you'll never get. Tell them you want the same or you are off and if they say no hand your notice in there and then. Anything else isn't going to make a blind bit of difference.

[GJABS]

Only 15% cut? You're lucky it isn't more, in this market.

[dsc]

How easy is it for you to find another role? Have you searched recently? The market is grim but you might have some niche skills that go against the grain, so perhaps not all is lost. If you have nothing else lined up ready to walk into I'd say contest it nicely and if they say no-go, accept.

[TheDude]

Take it and start looking for something else.

If/when you resign explain to your manager that the rate cut prompted your decision.