Reduction In Daily Rate?

[NotAllThere]

In many places, purchasing departments, for example, fix the maximum daily rate. The trick there is to reduce the length of a day.

There is also the impression that most contractors want to work 5 day weeks. Though there is often a clear requirement for part-time work, that usually gets filled by consultancy partners, or main suppliers. Of course, few days means less commission for agents, so they're not interested in promoting it either. And some clients think that 2 days a week means a lower daily rate than five days a week - like somehow they're doing you a favour.

[expat]

I never understand this logic. Isn't the point they want you to do the same amount of work for 90% of the rate, i.e less £/hr? What is gained by paying you the same rate but for less hours, it just slows the project down...

This "logic" applies to places where the budget is more important than the results. Most corporate projects, IOW.

[d000hg]

Rather than taking, say a 10% cut. Offer to do a 9 day fortnight instead.

I never understand this logic. Isn't the point they want you to do the same amount of work for 90% of the rate, i.e less £/hr? What is gained by paying you the same rate but for less hours, it just slows the project down...

[Le Rosbif]

The bank I work for put my rate down 5% before Xmas
It was "take it or leave it"

They now have been profitable for Q1 and so will they most likely be for Q2.

I am due to renewal in October, I will request them to put me back at the rate they hired me.

It will be "take it or leave it"

[NotAllThere]

Rather than taking, say a 10% cut. Offer to do a 9 day fortnight instead.

This is exactly the way to go. ( At least, it's what I do ). If you can do, say, a 3 day week at the same daily rate as you are now, that gives you another 2 days to work on something else.

My current client couldn't give me a 5 day week, because a) they haven't the budget, b) they haven't the requirement. So I began the year on 2 days per week. Then someone else, with their own budget, needed someone for a few days work - so i was doing a 3/4 day week. Now it's snowballed, and some weeks I'm doing 6 day weeks!

[swamp]

Let's say you're asked to take a 10% rate cut.

If you elect to join the bench, and only spend a month there before you find a role on your old (good) rate, it will take around 1 year to break even. In this market it's unlikely that either of these will happen; more like 4 months on the bench with a 25% cut.

General advice is check you're not being scammed by your agent, push back a bit on the client and the agent, be a bit awkward but at the end of the day take the cut.

Some contractors talk about "pride" or "standing firm" etc. That's permie talk. You're running a business and your duty is to its shareholders, and those shareholders want to be paid dividends!

[thunderlizard]

See if you can accomodate them without caving in completely. Start by asking what they think they've done to earn a discount. Maybe offer them 5% off for a limited period in exchange for something else.

[FSM with Cheddar]

Rather than taking, say a 10% cut. Offer to do a 9 day fortnight instead.

[BoredBloke]

WHS - Also when you speak to your CLIENT ask what sort of reduction they are looking to make and check that the agent isn't pulling a fast on. It could be a good way to start the conversation to see what the client is paying for you and how much the agent is making!

[Drewster]

I've only been contracting for 18 months, but have been in my current contract with a telecomms company for 15 months, and it's a good role, with good people.

There are some budget issues in the company, and they are letting some contractors go. I had a phone call from my recruitment consultant today saying my boss has asked if I can reduce my daily rate.

I don't really want to reduce my rate, but it's a good role and I don't want to have to look for a new role in the current climate.

Has anyone else been put in this situation before where the employer has asked them to reduce their rates?

boss -
the employer -

Aside from pedantry.......

Speak to your client... and check that your Pimp isn't lying...... It is just possible! (a) That he isn't lying, b) That he isn't lying about this)

Such shennanigans do sometimes happen..... so I woul dimagine the answer to your question wil be "Yes"....

Obviously only you can decide if you "take it"........

[basshead]

The end client and agency have the commercial relationship, not you and the end client, so in reality the client is asking the agency to supply yourco more cheaply.

If you don't feel like bending over, ask the agency what they are going to do to reduce their cut to soften the blow to yourco. Appear flexible but stand your ground as far as you want to push it. Some agencies won't budge, but yourco shouldn't make it easy for them.

HTH

[DimPrawn]

Has anyone else been put in this situation before where the employer has asked them to reduce their rates?

Yes, permanent staff. They are the ones with an employer.

[RTB]

I've only been contracting for 18 months, but have been in my current contract with a telecomms company for 15 months, and it's a good role, with good people.

There are some budget issues in the company, and they are letting some contractors go. I had a phone call from my recruitment consultant today saying my boss has asked if I can reduce my daily rate.

I don't really want to reduce my rate, but it's a good role and I don't want to have to look for a new role in the current climate.

Has anyone else been put in this situation before where the employer has asked them to reduce their rates?