How Low Can You Go?

[Tractor Trace]

I know there must be loads of threads about this. With the current market as it is, I'd be interested to know how much percentage day rate drop or other previous deal breakers some of you have had to make recently in order to close that widening gap between time on the bench and securing a gig, and how it compares to previous contracts.

I have an interview next week for an Inside IR35 senior role which is 15% less (relatively speaking) than my previous Outside rate. 2 days a week in the office....and also...wait for it....working alongside/contracting via one of the Big 4's which I said I'd never consider again after the last time. Normally I'd pass on this but speaking to other contracting friends and ex colleagues' experiences I'm not sure how long or whether to even consider it. The usual, busy January start to the year for decent roles? Not sure about that one.

[northernladuk]

Welcome to the new world.

So for me it's not how low I can go, it's about prospect of work. The lowest you can go is zero for waiting for the dream gig that's not going to appear so that's the one to avoid. Anything above that is a win. I'm currently inside and it works out as the lowest take home in 15 years but to be fair it's still good income. The market is so bad at the moment I'll take anything suitable that keeps me in work. It's highly likely in my area I could be out for a good couple of months at the moment so I won't be turning any gig down based on rate. I simply can't afford not to. I'm getting next to zero alerts on Jobserve so sitting nicely in an inside IR35 gig on a comparatively low rate is a win at the moment.

If people do share numbers with you it will be useless for you and in fact might cloud your judgement. You don't know where they are in the country, their years of experience, skills or area they working. Just asking for a number with no context just isn't going to help.

I would work on the fact January will be as dead as it has been all year. The world has changed, no getting away from it and IMO for possibly the rest of my working life it's not going to change. There is no coming back from where we are for many years, if at all now.

[SussexSeagull]

Bearing in mind I have my first meeting about Universal Credit today I will take anything that is financial viable (i.e. everything that isn't £150 inside at the other end of the country).

That said I had a conversation about a contract I was qualified for that would have been my best ever rate so there are exceptions out there.

[SussexSeagull]

Welcome to the new world.

So for me it's not how low I can go, it's about prospect of work. The lowest you can go is zero for waiting for the dream gig that's not going to appear so that's the one to avoid. Anything above that is a win. I'm currently inside and it works out as the lowest take home in 15 years but to be fair it's still good income. The market is so bad at the moment I'll take anything suitable that keeps me in work. It's highly likely in my area I could be out for a good couple of months at the moment so I won't be turning any gig down based on rate. I simply can't afford not to. I'm getting next to zero alerts on Jobserve so sitting nicely in an inside IR35 gig on a comparatively low rate is a win at the moment.

If people do share numbers with you it will be useless for you and in fact might cloud your judgement. You don't know where they are in the country, their years of experience, skills or area they working. Just asking for a number with no context just isn't going to help.

I would work on the fact January will be as dead as it has been all year. The world has changed, no getting away from it and IMO for possibly the rest of my working life it's not going to change. There is no coming back from where we are for many years, if at all now.

If you look on the big thread about such things it is the exception who get a new contract in any period of time and even they know they are lucky and it might not happen next time. Compare that to other times when I was out of work and others were getting new contracts easily (and vice versa, I sometimes was doing ok when others were struggling).

Problem is I don't think the permanent market is much, if any, better. It does look a touch existential for the UK IT industry, as the eco-system looks to be dismantling round it.

[fatJock]

I took a 10% drop overall inside IR35 role for my first back from a planned year off. Rationale was it was pretty much guaranteed work for 12-15 months which so far has borne out to be the case with a likely extension to June in the pipeline.

It's a second stint at somewhere I already have worked, I know the processes and the teams, the work is interesting and its 95%+ remote (been in the office twice in the last six months). There's lots to be said for that which IMO makes the 10% drop worthwhile. Arse of a market too so better to have work than to be looking for it.

Just for context - Infra PM / Programme Manager. Midlands based. Early 50's, contracting for 7 years.

[WTFH]

The market started to change in the early 2010s for me, then 2016 was a bit of a blow, followed by the Covid months.
From one point of view, Covid was great, as a lot of my foreign projects no longer demanded travel.
Before then, I was travelling for work, not like the stay-at-home permitractors who only would accept work within 30 miles of where they lived.

Now, I have my clients (in various parts of the world), a good reputation and a fast internet connection.
Discussing what my rate had done over the last 25 years, or creating some graph with inflation, interest rates, stock market and my rate, well that's pretty pointless. You're not me, your personal circumstances are different to mine, as are your priorities.

[SussexSeagull]

The market started to change in the early 2010s for me, then 2016 was a bit of a blow, followed by the Covid months.
From one point of view, Covid was great, as a lot of my foreign projects no longer demanded travel.
Before then, I was travelling for work, not like the stay-at-home permitractors who only would accept work within 30 miles of where they lived.
.

I had several contracts where I travelled up first thing Monday and came back on Friday evening and travelled round the country for others but Inside IR35 stops them being finanically viable, plus I think clients want to hire local now.

[Fraidycat]

During a bear market my lowest rate would cover my cost of living so as to tread water rather than go backwards.

However every month spent on the bench then even that drops, as its better to earn something to reduce the rate at which you burn through your reserves/war chest.

25K is the minimum wage next year for full time work, so that sets an absolute bottom figure i guess.

[ladymuck]

I tend to believe that earning something is better than earning nothing and burning through your war chest. I would take a poor paying role with a view to moving on to something offering a better rate as soon as possible. Even if that poor rate doesn't cover all your outgoings, the outflow from your savings is reduced and so they'll last longer.

[avonleigh]

I have taken low rates a few times in my career. One time over 50% less. Never happy about it but it's kept me from losing my house so I don't regret it. In this day and age you have to do whatever it takes. Whether it's taking a low rate in the bad times or having a side hustle.