15% cut rate for all contractors at Goldman Sachs

[BolshieBastard]

You could always accept the 15% rate cut in return for 15% less work. If you are doing 37.5 hrs a week for instance you could take off 5.6 hours

Hardly any company instigating a rate cut will go along with this.

That depends how much you are spending on accommodation, transport, etc. Granted it's unlikely he's operating at such a low margin but regardless, it does mean profit drops by more than 15%, possibly a lot more.

Well, exactly. Unless you were on a rate that gave you no profit at all, you are still better having 85% of something if only to pay household bills. True, it is not good to work just to stand still but, it is better to have income that allows you to pay your mortgage and other expenses.

[Nitrox]

Sounds unfortunate, but Im assuming these rates are crazy high in the first place?

Difficult to be sure, but I reckon when I took the contract initially the top tier banks were paying around 20% over standard market rates. So, a 15% cut now only really puts me on what the general rates were in mid-2010. Not sure whether general market rates have fallen that much since 2010 though.

[malvolio]

Difficult to be sure, but I reckon when I took the contract initially the top tier banks were paying around 20% over standard market rates. So, a 15% cut now only really puts me on what the general rates were in mid-2010. Not sure whether general market rates have fallen that much since 2010 though.

They haven't. What's actually happened is that the Finance market has just realigned tiself with the gerneral one. Why else have they all instigiated the same cuts at the same time, if not to prevent their workforce simply moving to a different bank? Or do you think the banks don't talk to each other...?

[centurian]

Or do you think the banks don't talk to each other...?

If there was hard evidence of that - it would be illegal - as they would be operating as a cartel

They don't really need to talk to each other though - they can just get the details on CUK

[perplexed]

Surely it's more accurate to state the banks are looking to cut the amount they pay the agencies ( assuming you're not going direct ).

After all, if your contract is with the agency, isn't it kinda irrelevant what the client do? *


* Yeah, I know, I'm an idealist. But with a good wind, you may be able to reduce any cut in the rate you get from the agency if you can get pressure on, forcing them to absorb some of it... **

*** Yup, still an idealist.

[malvolio]

Surely it's more accurate to state the banks are looking to cut the amount they pay the agencies ( assuming you're not going direct ).

No, the margin will be defined in the agency/client contract, the one we aren't allowed to see...