Minimum rate increase (%) to leave current / soon-to-renew contract?

[cojak]

Minimum rate increase (%) to leave current / soon-to-renew contract?

I have never had a rate rise with an extension, and many contractors feel fortunate that they've never had a rate cut during the contract.

You can certainly ask for one but don't be surprised if the extension is withdrawn afterwards, and as for amounts it depends on how valuable you are to the project, not time served (that's permie thinking ).

[Sam Sung]

Hi all, first posting.

I agree there are a good few intangibles, but every man has his price, at least for his work, and when it comes to business there are no exceptions.

With all else being equal, and assuming Friday finish, Monday start ....

Week 1 - 5%;

Week 2 - additional 1% every day, capped at 10%.

For personal reasons I happen to fully and wholeheartedly support the mission of my current client and it would take quite a lot more than 10% to hand notice. However, this is a rarity in my career.

[kaiser78]

I got an 8% rate rise at last renewal - didn't have to threaten to leave, just reasoned with them. And I was already on a decent rate. Have used this approach previously as well and achieved desired results each time.

[constructor]

Bump. How did you get on with this?

Excuse me for the rebump but to answer dmo's question (better late than never): I took the convenient route at the time i.e. stayed on the "current" contract. I can't remember the ultimate deciding factor(s) but the ones listed above (work content, people, facilities, commute) together with high likelihood of renewals won over the rate increase.

[dmo]

Bump. How did you get on with this?

[Basil Fawlty]

What would be your current minimum rate increase -- percentagewise (any, 5%, 10%, 20%, 30%, more) -- that you would consider leaving your current and/or soon-to-renew contract? What factors would play into it in your case?

I'm contemplating my choices hence I'd like to hear your thoughts on the matter.

I think it's difficult to quantify. I've just turned down a 10% increase for a contract much nearer to home because I really like where I am now.

There's a lot of intangibles to take into account eg working environment, eye candy, flexibility, learning opportunities etc etc that you need to factor in before you can make any sort of decision...

[Scrag Meister]

Scoi: Commute would very likely be longer. Type of work and contract length are still open. Ditto on your last sentence.

northernladuk: You're reading my mind. Very sound advice. I've nailed the rate justification bit on this gig but haven't been pressing a rate increase as my value has grown. The rate started at an "ok" level; neither good nor bad. However, with time it has dropped below the ok-level. Other factors (work content, people, facilities, commute, etc.) are actually above average or good. It's the rate that nags in the back of my head. There are two agents in-between both taking somewhere between 10-15%.

Wanderer: There would be a hefty raise (10-20%) for the new contract.

Thanks for your responses.

If you have 2 agents taking a slice I would assume there is flexibility for a nice rise even if the new client is only expecting the same total expenditure as the current client.

As others have said commute and other changes need to be factored in too.

[farout117]

Scoi: Commute would very likely be longer. Type of work and contract length are still open. Ditto on your last sentence.

northernladuk: You're reading my mind. Very sound advice. I've nailed the rate justification bit on this gig but haven't been pressing a rate increase as my value has grown. The rate started at an "ok" level; neither good nor bad. However, with time it has dropped below the ok-level. Other factors (work content, people, facilities, commute, etc.) are actually above average or good. It's the rate that nags in the back of my head. There are two agents in-between both taking somewhere between 10-15%.

Wanderer: There would be a hefty raise (10-20%) for the new contract.

Thanks for your responses.

I think you have already made up your mind If you were so happy in your current gig, you wouldn't think of moving IMO. Go for it I'd say, although personally I don't like to leave a gig before the end of the contract, if not for something exceptional .

[constructor]

Scoi: Commute would very likely be longer. Type of work and contract length are still open. Ditto on your last sentence.

northernladuk: You're reading my mind. Very sound advice. I've nailed the rate justification bit on this gig but haven't been pressing a rate increase as my value has grown. The rate started at an "ok" level; neither good nor bad. However, with time it has dropped below the ok-level. Other factors (work content, people, facilities, commute, etc.) are actually above average or good. It's the rate that nags in the back of my head. There are two agents in-between both taking somewhere between 10-15%.

Wanderer: There would be a hefty raise (10-20%) for the new contract.

Thanks for your responses.

[Wanderer]

What would be your current minimum rate increase -- percentagewise (any, 5%, 10%, 20%, 30%, more) -- that you would consider leaving your current and/or soon-to-renew contract? What factors would play into it in your case?

I would leave for a 10% increase, all other things being equal (which they almost never are so you have to weigh up a load of complex factors).

Good luck making your decision.

[northernladuk]

Firstly if you are going to stick a rate rise infront of the agent you have to justify it and also be determined to walk. I am sure they get 100's of contractors trying this one and and would bet the percentage that go are minute. If it there is even the slightest hint you are bluffing the agent won't move.

Secondly, how much do you want to stay?? Will a couple of percent rate rise really keep you there? Are you leaving cause you are f'd off or don't think you are being paid enough? If you want it cause there are better gigs out there I would take the better gigs. A few percent money will not improve your working conditions.

Do you know what the agents rate is? Many large organisations have them on a fixed price at aroun 12% so if you walk in asking for a 10% rise he will laugh you out of the door. Double figure rate rises are only possible if you have been had over by the agent. Remember he has a set figure from the client and you have a cut of his rate, it isn't a bottomless pit unless you did a bad job of negotiating to start. If you did then I would say you have your work cut out for that very reason.

[Scoi]

Any difference in the commute, type of work, contract length?

I've just been asked by an agent to go for a role that is £10ph higher and would change from a M-F away from home to a 1 hour train commute and the contract is predicted to be 12-18 months. Bit of a no brainer for me even though i prefer the work at current ClientCo. Never thought i'd leave a contract that was going well but everyone has a price be it financially or personally.

[constructor]

What would be your current minimum rate increase -- percentagewise (any, 5%, 10%, 20%, 30%, more) -- that you would consider leaving your current and/or soon-to-renew contract? What factors would play into it in your case?

I'm contemplating my choices hence I'd like to hear your thoughts on the matter.