Rate Cut Rumours...

[expat]

"Petty" was a tad strong - but IMO necessary to state the point and make it as bleak, ruthless and de-personal as possible..
So, IMO.....
Business is only judged on one thing - how much money you make. It is the only reason to be in business.
As contractors, we are always tempted to put some sort of caring moral "Human" veneer over the process. This is because mainly we do the work ourselves and in so doing we relate personally to the day to day contact.
You could say that we lament the agency because of the lack of perceived veneer.

If you re-consider the events in that way, emotion is lessened and a better business decision is usually arrived at
i.e. stay where you are and accept the cut.
In truth, you should always be looking for the next best opportunity no matter who your "mate" is

Seriously? So you wouldn't be tempted to allow the description "unprofessional" for a contractor who quits early?

[theoctopus]

10% cut imposed by client last week on a 'take it or leave in a month basis'. better than a 100% cut though.

[moorfield]

Should this rumour turn out to be true and I am faced with the decision of working for less money vs. walking away, I have a question:

Never been in this situation myslef but I think - given a reasonable war chest - I would walk - and walk immediately (having had timesheet signed!). Clientco's might expect some whinging but I'd be interested to see how they reacted to that.

[Bumfluff]

I took a 10% cut 6 weeks ago but only 3 months left to run on gig. To be honest I was fine with it and just cut my work effort to reflect the rate cut. Have some £ comming in is better than sitting on your a*rse waiting for the next gig. If they offer me renewal here I would be willing to take another 10% cut to secure the 6months.

[minestrone]

I got hit with a 15% cut and I told them to jump. Management were apparently shocked I said no, expected everyone to just take it.

I have been told by someone in HR off the record that all the finanicals in Edinburgh got together and agreed an across the board cut for all their the IT staff, try to stop people jumping ship for higher rates.

Anyway Plan B is looking v promising and I was going to leave anyway. It's a dull as dishwater job.

[Mich the Tester]

I have been told by someone in HR off the record that all the finanicals in Edinburgh got together and agreed an across the board cut for all their the IT staff, try to stop people jumping ship for higher rates.

Erm, that sounds very illegal. Still, try finding anyone to do anything about it.

[BrilloPad]

5% cut.

Sorry to hear that.

But in these troubled times it could have been worse. Might be the best way to look at it?

[d000hg]

Sorry to hear this guys.

Ride it out and keep looking for that next contract...

A new contract because of a 5% cut seems pretty extreme. Or did you mean "look for a new contract 'cos you ain't getting renewed"?

[EternalOptimist]

my 2c

You are in business to maximise your profits. If you earn 400 a day and have expenses of 300, your profit is 100 per day.

A 5% cut to the rate will reduce your profit to £80 per day.

They aint giving you a 5% cut, it's a 20% cut.

[expat]

my 2c

You are in business to maximise your profits. If you earn 400 a day and have expenses of 300, your profit is 100 per day.

A 5% cut to the rate will reduce your profit to £80 per day.

They aint giving you a 5% cut, it's a 20% cut.

Agreed. That's not the client's arithmetic, but it is the real way for you to look at it.