Reply to: Best way to get a rate rise at renewal

[boredsenseless]

You'll probably have to walk to get the rate you're looking for...

ratewhore is probably correct

contrary to public opinion the only way is down not up!!!

It is 90% more likely to be offered a reduction than a raise at renewal, the skill is in getting a raise out of it by negotiation or knowing when to walk whilst you still have your dignity

[ratewhore]

You'll probably have to walk to get the rate you're looking for...

[FrankScribe]

Hmmmmmm Interesting.

I'm on my first contract which has been running a couple of months now, comes up for renewall next month. (Though they are suggesting they want me to go perm with them)

When I started I pitched my rate at what I considered to be a reasonable level to 'buy' experience with a particular application. I now have that 'skill' on my CV of course but, more importantly I am now involved in recruiting additional contractors who will be working as part of my team and find that the rates they are asking are 15-20% higher than mine (before the agencies appll there cut).

So, do I -

A. Just put it down to experience and be happy that I have a new skill on my CV.
B. Push for a higher rate than my team members

C. Look for another Contract to start in December

D. Go onto their staff

[MarillionFan]

Seems fair to be. £50 to the agent, £350 to you.

You can ask for a rate increase but then (like us) your agent & employer will think you're a greedy b@stard and will hopefully can your arse!

[bridder]

as far as everyone else is concerned you're getting what you agreed to work for (which is why I said that stuff about added value - doing the job is not enough).

I mostly agree with what you have said malvolio but in a sense also disagree with it, the simple passage of time can be a requirement for one to up their rates.

I do agree with the general rule that the contractor should not worry themselves with what the client is paying as long as the contractor got what he/she was happy to do the contract for in the first place. As far as the quote above is concerned I am talking about the next contract which though connected is not the one that I agreed this rate for, this rate is for this contract and no other, although as you have said, the amount of money that I am talking about is hardly worth losing any sleep over,

thanks for grounding me anyway,
brid

[malvolio]

Ignore what the client is paying, the only number that matters is what you get. If you're happy with it, fine, if you're not, as it seems, then it's your call. You obviously either live with it, walk for something better or get lucky. Ask for it at renewal by all means, but if it doesn't come, well that's the name of the game - as far as everyone else is concerned you're getting what you agreed to work for (which is why I said that stuff about added value - doing the job is not enough). The agent will ask the client (after all, more for you means more for him), but since he's on a fairly standard percentage he's probably not going to cut his margin by any signficant amount.

And at the end of the day, it's really not worth the anguish for an extra £60 a week net gain, is it?

[bridder]

Well agency rates are usually around 15% so £50 ain't bad really, sounds a lot, but not much room for manouvre really.

I agree with the above here but if I could put a few question to you all;

The contract that I am on is for not nearly as much money, it was originally advertised at £20 ph, I got it up to £23 ph with some wrangling with the agent, they wouldn't shift from £22 ph so I said forget it then (five minutes later they were on the phone saying they could do it...)

Whilst fighting over this pound I did ask what the client was paying and they told me £30 ph, which seems about right for them trying to take an overly large 33% in my mind (from the initial advertising), I argued that if they were to take £6 ph and give me £24 ph that they were still taking 20%, so what was the problem with giving me £23 ph....

Anyway, my questions;

1. If 15% is about right, do you think the agency would continue to use me as the consultant for this contract if come renewal I put it to them that I want £25 ph on subsequent renewals? (Assuming that the client and myself are happy and keen to continue our working relationship... )
2. Do you think the client is only paying £30 ph? (I probably think they are as it was originally advertised as £20 ph...)

Thanks for any input,

regards,
brid

P.S. I don't care about having a fall back plan, I've left things so many times in my life without worry or care of what I will do next that I've lost count, my friends think I'm a hero of some kind, either that or I'm mad. Everytime I have done this, something else has always come along that was better, maybe I'm just a lucky bast*rd, I don't know...

[malvolio]

Well, a fairly good point AJP. However, they (are perceived to) simplify invoicing, minimise risk, handle all negotations and provide quality assurance.

We know that's nonsense, but Human Remains don't, nor ever will.

And from our side, to be fair, the agent does carry a chunk of finacial risk on our behalf. So to do it fairly (c. New Labour 1997), you should only look at taking back the percentage of their margin that went on the marketing and CV distribution services for your role - which is about 3% of bugger all!

[boredsenseless]

Plus, with my management hat on rather than my contractor one, the first question I'd ask is what have you done to justify getting a raise?

Granted yet likewise by the smae token Management may also ask what value is the Agency now adding ,post supplying the candidate, and would it be more cost effective to hire the productive contractor directly ?

I think you hit on the problem with that one with the word contractor, of which a large constituent part is the word contract!!! Clients tend not to break these as it has a habit of being messy

[AlfredJPruffock]

Plus, with my management hat on rather than my contractor one, the first question I'd ask is what have you done to justify getting a raise?

Granted yet likewise by the smae token Management may also ask what value is the Agency now adding ,post supplying the candidate, and would it be more cost effective to hire the productive contractor directly ?

[stacks]

Well thanks for the advice, I'll let you know if I manage to get one

[malvolio]

Plus, with my management hat on rather than my contractor one, the first question I'd ask is what have you done to justify getting a raise?

Doing your job well is not actually a reason, because that's what you're paid to do. You have to have added some value somewhere: the agent will go the client first, rather than threaten his margin, so you need the client to be saying good things about you, even if they are not putting up any extra cash themselves. Blagging is fine, but you have to start from a position of strength.

[boredsenseless]

I'm with Blaster here 50 quid is about the minimum your agent will stomach push it any lower and you run the risk of him pulling out

[BlasterBates]

Well agency rates are usually around 15% so £50 ain't bad really, sounds a lot, but not much room for manouvre really.

[ratewhore]

I've never experienced it either. The only way they will do this is by you eating into their margin by a rate rise come renewal...