Will a client refuse a rate rise out of fear it will upset other workers?

[KentPhilip]

My contract is up for renewal, and I have offered to renew it if they increase my rate by 11%. But the company has just done a permie wage freeze, and all contractors have been forced into 10% cuts.
My brother thinks that the company will refuse me the rise even at risk of inconveniencing the business because of the risk that permies and other contractors will be upset and demotivated etc etc if they find out (thinking it is unfair).

Is he right?

Or don't companies think this is a concern at all (i.e. they'll tell me to keep my mouth shut and believe that I'll do that).

Needless to say the agency weren't happy with my offer; I could feel their anger over the phone. They said it was very unlikely the client would accept such a rise, and I was best advised to accept the 10% cut because the market is not good at the moment. Of course you can't accept what an agent says at face value as they have a vested interest.

Thanks.

[eek]

Firstly why does your brother matter?
Secondly why would others find out?
Thirdly when they say no and show you the door are you prepared to be on the bench for a while?

Finally, good luck I think you'll need it unless you are absolutely essential and even then I wouldn't hold out much hope.

[kingcook]

My brother thinks that the company will refuse me the rise even at risk of inconveniencing the business because of the risk that permies and other contractors will be upset and demotivated etc etc if they find out (thinking it is unfair).

Is he right?

Damn, where's my "How ALL clients MUST behave" manual when i need it?

Seriously... put yourself in the client's shoes. Imagine one of your suppliers has just said that they will now be charging 11% more. What would your options be?

Needless to say the agency weren't happy with my offer; I could feel their anger over the phone. They said it was very unlikely the client would accept such a rise, and I was best advised to accept the 10% cut because the market is not good at the moment. Of course you can't accept what an agent says at face value as they have a vested interest.

Of course the agent won't be happy. You're asking them and/or their client to give more money. Also remember that the agent doesn't want to run the risk of losing the commision they make of you.

[craig1]

Anything's possible, just answer the "what's in it for us?" question convincingly enough. If you're that valuable that an 11% raise is justified then they'll pay it if you can justify it.

That said, you run the risk of annoying everyone in the chain if you're just asking for more money without giving that robust justification.

[cojak]

Are you crucial to the success of the project?

If you are you would have stopped the cut/you may get the rise.

If you're not good luck on finding your next contract...

[jmo21]

Yes, they might be annoyed, and not give you the increase you want.

They also might agree dependant on a number of things mentioned by other posters.

None of us can make an accurate guess at how likely either are as we don't know the in's and out's of you and your project.

I think that covers it.

/thread.

[Ignis Fatuus]

1. It depends on the client. Personally I went into contracting partly in order to be treated as an individual and not as a point on a chart, i.e. get paid what I'm worth, not what the rate card says. But the client may not see it that way. Who knows?

2. If your agent is always happy with the way you negotiate your rate, you're not doing it right.

[TheFaQQer]

My contract is up for renewal, and I have offered to renew it if they increase my rate by 11%. But the company has just done a permie wage freeze, and all contractors have been forced into 10% cuts.
My brother thinks that the company will refuse me the rise even at risk of inconveniencing the business because of the risk that permies and other contractors will be upset and demotivated etc etc if they find out (thinking it is unfair).

Is he right?

Is your brother a contractor? If not, then remember that any "advice" that he provides may well be blinkered by a permie mindset.

However, there may well be something to what he says - if the company has told everyone that everyone is getting a cut, and that's not true, I can see how that might demotivate others around you. The first thing to consider is whether anyone is likely to find out. If you are going to go boasting to your mates (or on here, where they may read it and work out who you are) that you've got an increase while they got a cut, then I would expect the client to be more than a little annoyed with your behaviour. If there is no good reason why anyone should find out (and there shouldn't be), then it's not really an issue.

Needless to say the agency weren't happy with my offer; I could feel their anger over the phone. They said it was very unlikely the client would accept such a rise, and I was best advised to accept the 10% cut because the market is not good at the moment.

Here's my surprised face -

You asking for a raise presents awkwardness to the agency. They want to avoid this, and (if possible) avoid any impact on their margin. They may be offering good advice, however - how likely are you to find work quickly? How prepared are you to walk?

One thing I'm not clear on is whether you are asking for an 11% increase post cut (i.e. to put you pretty much where you were before), or an 11% increase instead of a 10% decrease. If you accepted a 10% cut, and are now pushing for more, then I think that your bargaining position was strongest before you accepted the cut - now you just look a bit silly. If you are asking for an 11% increase while everyone else is getting a 10% decrease, then that's something in the region of 23% more than others around you, and I would expect the client to laugh at you and show you the door.

[Joeman]

Squeeeeeze the agent, not the client

[SteelyDan]

So, in short, you're asking for a raise, when all and sundry (perm staff & other contractors) are taking cuts. I think you need to keep it real. What makes you worthy of a raise, especially given the surrounding circumstances?

There's always some clever sneaky tw*t who will find out if anyone got a raise, and quite rightly, they would be somewhat 'miffed' if they were to find out (by whatever means), which could have an adverse impact on working relationships, particularly where you're concerned. Think about it & put yourself in their shoes. What would your reaction be?

There's greed, then there's common sense. Hopefully the latter might kick in at some stage for you.