Reply to: 15% cut rate for all contractors at Goldman Sachs

[malvolio]

Surely it's more accurate to state the banks are looking to cut the amount they pay the agencies ( assuming you're not going direct ).

No, the margin will be defined in the agency/client contract, the one we aren't allowed to see...

[perplexed]

Surely it's more accurate to state the banks are looking to cut the amount they pay the agencies ( assuming you're not going direct ).

After all, if your contract is with the agency, isn't it kinda irrelevant what the client do? *


* Yeah, I know, I'm an idealist. But with a good wind, you may be able to reduce any cut in the rate you get from the agency if you can get pressure on, forcing them to absorb some of it... **

*** Yup, still an idealist.

[centurian]

Or do you think the banks don't talk to each other...?

If there was hard evidence of that - it would be illegal - as they would be operating as a cartel

They don't really need to talk to each other though - they can just get the details on CUK

[malvolio]

Difficult to be sure, but I reckon when I took the contract initially the top tier banks were paying around 20% over standard market rates. So, a 15% cut now only really puts me on what the general rates were in mid-2010. Not sure whether general market rates have fallen that much since 2010 though.

They haven't. What's actually happened is that the Finance market has just realigned tiself with the gerneral one. Why else have they all instigiated the same cuts at the same time, if not to prevent their workforce simply moving to a different bank? Or do you think the banks don't talk to each other...?

[Nitrox]

Sounds unfortunate, but Im assuming these rates are crazy high in the first place?

Difficult to be sure, but I reckon when I took the contract initially the top tier banks were paying around 20% over standard market rates. So, a 15% cut now only really puts me on what the general rates were in mid-2010. Not sure whether general market rates have fallen that much since 2010 though.

[BolshieBastard]

You could always accept the 15% rate cut in return for 15% less work. If you are doing 37.5 hrs a week for instance you could take off 5.6 hours

Hardly any company instigating a rate cut will go along with this.

That depends how much you are spending on accommodation, transport, etc. Granted it's unlikely he's operating at such a low margin but regardless, it does mean profit drops by more than 15%, possibly a lot more.

Well, exactly. Unless you were on a rate that gave you no profit at all, you are still better having 85% of something if only to pay household bills. True, it is not good to work just to stand still but, it is better to have income that allows you to pay your mortgage and other expenses.

[darrenb]

The point of a contract is to ensure that both parties know what they are getting into, and so protect them from insecurity while they are supposed to be concentrating on the work. Unless you really are doing your job very badly, there is no justification for a cut like this.

If I were you, I would quit -- even if the agent backed down and reaffirmed the original terms -- simply because no professional should be subject to these kinds of games. I believe it directly affects the quality of people's work, and consequently is bad for the clients as well as the workers.

[escapeUK]

Sounds unfortunate, but Im assuming these rates are crazy high in the first place?

Personally I just negotiated a 33% increase, which was amazingly easy, but Im sure my rate is more modest than what Goldman would pay. Apparently they thought I was about to finish, as I had said I wasnt working at all in January next year and this was seen as me intending to walk away.

I also dropped things into the conversation such as "I like new exciting challenges" and "Im quite happy to find out what the market will pay me". No pimp in the way, and I deal direct with the owner of the company and directors.

[Nitrox]

That is not true. Permies defenitely work longer hours here at GS, but not me. I am doing my 40 hours a week and no more. I dont have an illusive bonus at the end of the year to work for and show my loyalty. So no reason to sit there for 10 hours a day.

Ah, you got lucky - my contract says 45 hours. The permies certainly work longer than that though.

[gemasp]

If you're working 37.5 hours a week you aren't working at Goldman Sachs.

That is not true. Permies defenitely work longer hours here at GS, but not me. I am doing my 40 hours a week and no more. I dont have an illusive bonus at the end of the year to work for and show my loyalty. So no reason to sit there for 10 hours a day.

[d000hg]

85% of something is better than 100% of nothing

That depends how much you are spending on accommodation, transport, etc. Granted it's unlikely he's operating at such a low margin but regardless, it does mean profit drops by more than 15%, possibly a lot more.

[Nitrox]

You could always accept the 15% rate cut in return for 15% less work. If you are doing 37.5 hrs a week for instance you could take off 5.6 hours

If you're working 37.5 hours a week you aren't working at Goldman Sachs.

[tractor]

....

GS is another one of the banks that are doling out the cuts but it is your choice whether to take it, attempt to negotiate or leave it.........

but if your contract is terminated, it could leave you short of options as things look to be getting worse before they are going to get better.

The wave of job cuts has only led to more workers moving into the freelance market meaning more competition for places. I have been in touch with contractors who have applied for over two hundred roles without landing a role.
It may be seen as cautious, but my opinion is to hold onto any role you can.....

This is my experience too. It is even difficult to get feedback from some of the roles AFTER you have spent money and time on interviews yet you would never hear the end of it if you failed to turn up

One ICT is one too many!

[RaLaCon]

GS is another one of the banks that are doling out the cuts but it is your choice whether to take it, attempt to negotiate or leave it.........

but if your contract is terminated, it could leave you short of options as things look to be getting worse before they are going to get better.

The wave of job cuts has only led to more workers moving into the freelance market meaning more competition for places. I have been in touch with contractors who have applied for over two hundred roles without landing a role.

It may be seen as cautious, but my opinion is to hold onto any role you can.....

[Scrag Meister]

85% of something is better than 100% of nothing so, you answered your own question in your last sentence.

Absolutely WBBS

You have my empathy, having just had a cut here too. There are a few bits and pieces out there, so if you are inclined start looking.