Reply to: Offered Contract at Reduced Rate

[psychocandy]

Seen it many times. Goes in the agents arse pocket.....

[Old Greg]

I was once told it was 14%. Checked with Client and it was 28%.

Luckily client was Goldmans and I got 40 contractors a 14% pay rise.....

Pay rise or fee increase (or loan adjustment)?

[BrilloPad]

What are the chances anything the agent says concerning a fixed rate or not is utter BS.

I was once told it was 14%. Checked with Client and it was 28%.

Luckily client was Goldmans and I got 40 contractors a 14% pay rise.....

[BlasterBates]

You can't distinguish between the client and the agency. Both do it. My experience of rate cutting on renewal is that it was always the client.

It's a negotiation, and you need to be prepared for it.

[sal]

It's most likely the agent trying it on. That's mostly irrelevant in how to handle it. The main question is how do you find the market at the moment.

You can call their bluff, just be prepared for the slight chance of losing the gig. Keep in mind that 1 extra week on the bench will wipe out extra £10/day for the next year.

As others have mentioned I tend not to take the risk and swallow it, only to recoup it come extension time, when I have much stronger negotiating position.

[JoJoGabor]

Yeah I got stung with this on some of my early contracts. Now days I tend to do the reverse and ask for more post interview once I've been offered the gig and "understand the role more", the last 3 gigs I've done I've successfully managed to negotiate this up

[northernladuk]

What are the chances anything the agent says concerning a fixed rate or not is utter BS.

There is that but it's a hell of a risk putting a blatant lie in an email, particularly if you get the gig and end up on site with their client. I know they are a sneaky bunch not to be trusted but I'd give them enough credit not to pull a bare faced lie like this. Asking the question also shows you know a little about how they work and aren't a complete noob so they will be a little less likely to try pull your pants down like they would someone that doesn't have a clue.

Never been a problem for me in the last 10 years.

[Cid]

What are the chances anything the agent says concerning a fixed rate or not is utter BS.

[Old Greg]

Accept the £10 pd cut and apply a £20 pd hair gel surcharge.

[northernladuk]

So they can still try it on fixed rate or not then.

Some interesting responses there. Thanks.

Have accepted anyway. At least it should see me through any Brexit market turmoil.

Not normally no. I wouldn't put it past them but if they are they are taking the piss out of their client as well which wouldn't be smart.

[Magaluf 19]

So they can still try it on fixed rate or not then.

Some interesting responses there. Thanks.

Have accepted anyway. At least it should see me through any Brexit market turmoil.

[zonkkk]

Yes, £10 off a not altogether great daily rate. Just worried he might can me and let the 2nd choice candidate have the contract so not going to sweat it.

Was just wondering if this is common? Won't name the agency but let's just say they're a pretty generic IT recruitment agency.

Yes, I got done done on my first contract too... Until renewal...

On another contract, where the agent was transparent from the beginning (he sent me the cover sheet where he put my rate and the rate that the agency was getting, which I saw and discussed with the client during the interview) he called to let me know the client wants me and confirmed, SURPRISE, a lower rate. I told him the client said the rate should be OK if they make an offer and that I wasn't interested in the contract at the lower rate. He called back in 20 minutes to say the rate issue has been sorted.

In conclusion, they are always trying...

[northernladuk]

You should always ask the agent if they are on a fixed rate and ask them to confirm via mail. That way you'll know if they are going to take the piss or not. If they are on fixed rate then there is nothing in it for them to mess around like this.
If they aren't then it's negotiation time and anything they cut will go in their pocket. Shaving a tenner of is a really crappy trick and I'll bet if you pushed it you'd get it back but it's so little they know most will accept it.
Accept the gig. Store it and get it back and more at next renewal.

It's not that common as most agents with large clients tend to be on fixed rates but looking at many posts on here there seem to be plenty of new contractors having their pants pulled down by agents like this. Some of them find the agents are taking anywhere between 20 and 40% of their rate so 10 quid isn't that bad.

[Magaluf 19]

Yes, £10 off a not altogether great daily rate. Just worried he might can me and let the 2nd choice candidate have the contract so not going to sweat it.

Was just wondering if this is common? Won't name the agency but let's just say they're a pretty generic IT recruitment agency.

[BrilloPad]

Personally I would take the role if nothing else on (which you imply).

And keep looking....