Payrise adivce/help please.

[GillsMan]

Hold on this sounds like its not an agency "cut", but a consultancy - can the original poster confirm? If so, this is normal as consultancy rates are typically £1000 - 1500 per day, and the contractor might get 500 - 600 say. The consultancy usually has to pay sales people to dig out the leads and covnert them to work, and are backed up by a team of certified professionals and project managers.

You may be able to get a bit more, but 45% isnt unreasonable

Very good point. My last perm job before I went into contracting was for a training consultancy company. I was on £32,000pa, but I was charged out at £700pd. Firm made on fortune on me and their other staff. Pretty good idea IMO!

[JoJoGabor]

Hold on this sounds like its not an agency "cut", but a consultancy - can the original poster confirm? If so, this is normal as consultancy rates are typically £1000 - 1500 per day, and the contractor might get 500 - 600 say. The consultancy usually has to pay sales people to dig out the leads and covnert them to work, and are backed up by a team of certified professionals and project managers.

You may be able to get a bit more, but 45% isnt unreasonable

[7of9]

Morning guys,

I was wondering if I could gain some advice from the more experienced members on the board.

I have currently been contracting at my role for approximately 4 -5 months and my consultant makes a handsome profit on me 45% odd. I would like to up my pay if possible to around 15%.

I will have to eat into his margin as the client won’t up my pay unless my job changes which is highly unlikely,

I was just wondering what is the best way to go about trying to secure a payrise?

When I had my first contract renewed, I found out the agency got 25% cut. So I asked them to reduce it to 10% or I will walk away. They did not agree with that, but offered to reduce it to 15%. They could not find a replacement for me, otherwise they would not give in that easily.
If they cannot replace you very easily, you get a better chance. But be prepared they will never give what you want. You have to meet them in the middle.

Good luch with the negotiation.

[Wanderer]

I have currently been contracting at my role for approximately 4 -5 months and my consultant makes a handsome profit on me 45% odd. I would like to up my pay if possible to around 15%.

I was just wondering what is the best way to go about trying to secure a payrise?

Speak to the agent and tell them straight up that they are going to drop their margin to 10% and give you a payrise or you will walk off the job.

They will laugh and say no way, not doing that. Make it clear to them that you are serious. They are seriously ripping it on the margin and you aren't going to tolerate that.

If they still refuse to meet your terms, it's time to play dirty. Tell them that you are going to speak to the client and tell them how much the agency is taking and that you think the agency are ripping both the client and yourself off (because they are). Now the client might not give a tulip about all this, but it's going to make the agency look pretty dodgy in the client's eyes and they will think twice before doing business with them again. The agency will come out with a load of bluster about confidentiality - just laugh at them.

Point out to the agency that if you stop working at the client then they get NOTHING and 10% of something is better than 45% of nothing. Also point out that if you decide to leave, you will make sure every agency in town knows that the client is going to be recruiting a replacement for you and you will do your damnedest to make sure that some other agency gets someone in to replace you.

Now all of that sounds pretty nasty but think about it for a minute. This agent is robbing you and the client blind. Agencies have a really thick skin so you have to be pretty firm with them. Don't take any nonsense from them.

If all else fails, point out that you could take an 8 week break from the contract and then come back with another agency (presuming you didn't opt out of the agency regulations)...

[northernladuk]

Or rather... quietly wetting his pants in delight at the fact he is dealing with someone who doesn't understand

Exactly but just FTFY a little....

[kingcook]

Morning guys,

I was wondering if I could gain some advice from the more experienced members on the board.

I have currently been contracting at my role for approximately 4 -5 months and my consultant makes a handsome profit on me 45% odd. I would like to up my pay if possible to around 15%.

I will have to eat into his margin as the client won’t up my pay unless my job changes which is highly unlikely,

I was just wondering what is the best way to go about trying to secure a payrise?

45% is a lot

How sure are you that it is 45%? Markup or margin? Are you comparing your VAT excluded rate to the agent's VAT inclusive rate?

[kingcook]

It is a rate rise not a pay rise. Your agent is going to just laugh you out of the building if youcan't even demonstrate so knowledge of your business.

Or rather... quietly wetting his pants in delight at the fact he is dealing with a contractor who doesn't understand

[saptastic]

Morning guys,

I was wondering if I could gain some advice from the more experienced members on the board.

I have currently been contracting at my role for approximately 4 -5 months and my consultant makes a handsome profit on me 45% odd. I would like to up my pay if possible to around 15%.

I will have to eat into his margin as the client won’t up my pay unless my job changes which is highly unlikely,

I was just wondering what is the best way to go about trying to secure a payrise?

As with any negotiation make sure you go there with justification as to why and also contingencies based on outcomes.
So maybe justify with - the market rate is..., I have had calls from other agents, I am getting excellent feedback from client, this may turn into a longer term contract which will mean more money all round etc etc.

It rarely works just by saying - I need a pay rise. The agent has to justify it to his master and his pay packet so make it easy for him to think about.

[blinko]

Yeah thanks guys, I am not one to try and bully agencies. I believe that they should be allowed to make a margin etc I have no problem with that business is business.

But i would prefer a fairer deal, especially as I believe I am worth more than I am currently being paid and I hate the constant having to struggle every month.

to be honest it's partly my fault, as I was out of work for 2 month and then a junior job came up and I jumped at the chance and didn't even think when he started knocking my rate down I just said yes to get back into work.

Lessons aren't free hey

[northernladuk]

It is a rate rise not a pay rise. Your agent is going to just laugh you out of the building if youcan't even demonstrate so knowledge of your business.

[NotAllThere]

First start with reasons why you should be paid more, and why that should eat into his margin. You have to be reasonable.

But at the end, it boils down to: "I'm up for renewal, but I want more money, otherwise I'll walk. Do you want a reduced cut, or none at all?". Whoever blinks first, loses. Unless he can replace you easily, in which case, you're stuffed.

[blinko]

Morning guys,

I was wondering if I could gain some advice from the more experienced members on the board.

I have currently been contracting at my role for approximately 4 -5 months and my consultant makes a handsome profit on me 45% odd. I would like to up my pay if possible to around 15%.

I will have to eat into his margin as the client won’t up my pay unless my job changes which is highly unlikely,

I was just wondering what is the best way to go about trying to secure a payrise?