Rate cuts hu-ha what are they good for?

[NorthWestPerm2Contr]

Everybody knows about the recent cuts that have happened at all (nearly) the banks. But what do they actually achieve? Does the bank save money or actually end up losing more? Me and all the other contractors around me have been demotivated by much more than the 10% rate we have been cut - in some cases productivity is down by much more than 50%. We are seriously peed off and will go elsewhere in the coming weeks - so they will have to go through an expensive recruitment process and bring people back in at the same if not higher rates.

So what the hell is the point in this all?

[MarillionFan]

It allows them to engineer out the chaff.

[TraceRacing]

It allows them to engineer out the chaff.

I'd say the opposite, the chaff stays but those with great skills find another role easily...

[NorthWestPerm2Contr]

I'd say the opposite, the chaff stays but those with great skills find another role easily...

Exactly - they cut the rates of the best contractors and they all left. So there is another thing gained: losing your best resources....

[northernladuk]

It's the bottom line that counts and they have to report that yearly to a pack of hungry wolves ready to tear in to them so they have to look as good as possible whatever the cost long term to the bank.

The better the results the less the flak from government, shareholders, eurozone etc. A couple of pissed off contractors are not their main priority right now.

[d000hg]

It sure helps them weed out the petulant unprofessional contractors who refuse to work for only £450/day.

[TestMangler]

I'd say the opposite, the chaff stays but those with great skills find another role easily...

WTRS

If you're confident about getting something else, you'll tell them to stick their cut.

That's what I've done any time it's happened to me.

[NorthWestPerm2Contr]

WTRS

If you're confident about getting something else, you'll tell them to stick their cut.

That's what I've done any time it's happened to me.

That's the thing - normally I would be confident but they cut at a time when my confidence is low due to the time of year and market. Between Feb and Sept of this year I was getting too many calls and I saw too many good roles around. Then October happened and they decided to cut right at the end of the month. This has peed me (and others) off even more.

[Stella]

That's the thing - normally I would be confident but they cut at a time when my confidence is low due to the time of year and market. Between Feb and Sept of this year I was getting too many calls and I saw too many good roles around. Then October happened and they decided to cut right at the end of the month. This has peed me (and others) off even more.

Myself, I'm flexible on rate, afterall best to keep ticking over and paying the mortgage. Others will think differently but everyone has different circumstances.

[SueEllen]

That's the thing - normally I would be confident but they cut at a time when my confidence is low due to the time of year and market. Between Feb and Sept of this year I was getting too many calls and I saw too many good roles around. Then October happened and they decided to cut right at the end of the month. This has peed me (and others) off even more.

That's why they did it.

They knew if they cut rates in the busy time of year you would all walk.

They know you will all walk come next year. Then they will raise the rates to attract people before cutting them again.