How to justify a pay increase?

**Drewster** · 17 February 2009, 12:57

Originally posted by Scotchpie View Post

As my workload hasn't changed how do I ask for an increase to my hourly rate?

SP: Can I have a rate increase please?

ClientCo: Yes of course you can - we have been undervaluing you for quite a while now. And we are sure that with the current state of the market you could walk into a much better paying role at the drop of a hat. Exactly how much more would you like?

Good luck with that!

**landl** · 17 February 2009, 12:58

Tough one

Originally posted by Scotchpie View Post

I've been with my current client for about 12 months. Every three months they keep extending. The project I'm on consists of one person (me) and there is no indication that they are, or wanting to, recruit a permie into the position. As for the length of the project - well how long's a piece of string? I can see myself sat here in another 12 months (and I've been told early that my current contract ending in May will be extended to July).

The problem is, as my wife gave birth a month ago, I could use a little extra as I generally base my rates on current needs. As my workload hasn't changed how do I ask for an increase to my hourly rate?

In the current economic climate, I think you'd have a tough time convincing a client to raise the rate. Perhaps if you hunted around for an equivalent position being advertised elsewhere at a higher rate, that might be a justification. That's worked for me in the past.

**realityhack** · 17 February 2009, 12:58

Is market rate for your skillset higher?
Have any business running costs increased?
Have you picked up any new skills that are relevant to the project?
Carefully measured the climate at clientco?
Have your living costs changed due to market factors?

Do you need to 'justify' anything at all? Can't you just say: "my new rates are..."

**sal626** · 17 February 2009, 12:58

Payrise doesn't need to be linked to workload increasing. If you have been working on the project for 12 months and delivering well,producing good quality work, then you could ask for a pay rise.

I usually find the best thing to do is just ask straight out....rather then say, "I want a £x per day pay rise", frame it as a question, verbally with your manager...."Whats the possibility of getting a pay rise?"....at least this way you can have a conversation about it and you know where you stand....Of course this works better if you have a good relationship with your manger..

just my 2 cents...

**tim123** · 17 February 2009, 13:34

Originally posted by Scotchpie View Post

The problem is, as my wife gave birth a month ago, I could use a little extra as I generally base my rates on current needs.

Boy, you're gonna be in sh*t street if the grim job chopper comes your way.

tim

**bogeyman** · 17 February 2009, 13:36

Originally posted by tim123 View Post

Boy, you're gonna be in sh*t street if the grim job chopper comes your way.

tim

Ahh! Nothing like a few words of encouragement and optimism, eh?

**tim123** · 17 February 2009, 13:36

Originally posted by landl View Post

In the current economic climate, I think you'd have a tough time convincing a client to raise the rate. Perhaps if you hunted around for an equivalent position being advertised elsewhere at a higher rate, that might be a justification.

I don't think "avertised" helps much.

Every week or so I'm seeing a (different) job advertised at 20% above the rate offered by all the others.

I replied to one, it was a bogus CV trawl.

tim

**tim123** · 17 February 2009, 13:38

Originally posted by bogeyman View Post

Ahh! Nothing like a few words of encouragement and optimism, eh?

Yeah, well. It really annoys me that people start contracting, earn twice as much and immediately up their spending to the new income.

Why do they think it is that contractors get paid twice as much?

tim

**bogeyman** · 17 February 2009, 13:42

Originally posted by tim123 View Post

Yeah, well. It really annoys me that people start contracting, earn twice as much and immediately up their spending to the new income.

Why do they think it is that contractors get paid twice as much?

tim

Yes I understand Tim. It annoys me too. I don't think it's a habit peculiar to contractors though.

How to justify a pay increase?