Get paid what you’re worth – with our top tips on negotiating your contract pay
The cost of living is now at an all-time high, and with rising energy prices, an increase in National Insurance and fuel at an average of £2 per litre, the UK is an expensive place to work and live. So how can your career in contracting still be as lucrative as it always has been? One way you can reduce your financial pressure, is by negotiating the highest contract rate possible with your client.
In this blog we explore the ways in which you can do this, to help you get the rate you deserve in your next assignment.
- Understand the current going rate
Negotiating is near impossible if you don’t have solid facts to base your argument on, so take some time to see what the going rate is for your skill set and what other similar assignments are offering. Once you have an average cost you’ll be able to see if your prospective client is offering a competitive salary, and whether there’s any wiggle room.
Ensure when researching similar rates that their location can also have a big impact. For example those based in London will be greater than those in more rural areas. Contractor specific forums, such as ContractorUK’s will give you direct access to your contracting colleagues, who you can ask about rates and how much you should be commanding based on your skill set and experience.
- Identify your strengths and what your skills are actually worth
If a stranger asked you what you did for work, how would you describe it? What would your job title be and which qualifications do you have? Once you’ve got a rough idea of rates and locations, take a look at your specialisms within those parameters. If you’re specific skill set or past experience with a certain client sets you above the rest, it’ll put you in a greater position to command a higher rate.
- Increase your professional value
Skill sets in such a fast pace industry such as IT contracting can quickly become out of date, so it’s important you keep on top of what clients are looking for and update your professional skills and qualifications accordingly. Keep an eye out for relevant training or qualifications that could increase your desirability, which will ultimately also give you a competitive advantage over your contracting colleagues. Having the latest and most desirable qualifications also can command higher rates, so take a look at updating your skills today.
- Speak to your agency
If you use a recruitment agency, be sure to speak to them first about increasing your fees. They’ll be well rehearsed in understanding the types of contracts you complete, how well placed you currently are in the contractor marketplace, and whether you’re able to ask more from certain clients. It’s still worth presenting the previous 3 point’s evidence to your agency also, so that they’re aware you’ve done your research, and are therefore serious about increasing your rates.
- Be picky with the contracts you accept
When you’re self-employed you may feel obliged to accept every contract that comes your way, as you never know when the next one may come along. If you’re just starting out you may take a lower paid contract with a really promising client that could lead to future work, or having their name on your CV could open future doors to bigger and better clients and contracts. Whatever the reason for accepting a contract, take a look at the bigger picture and see how it’ll benefit you in the long term, there’s nothing wrong with being a little picky!
Final thoughts
Knowing your professional worth is always the best place to start when considering changing your rates, as you know your skill set and experience better than anyone. You’ll know if it’s time to update your skills, or if a previous client isn’t paying you what you’re worth. Remember that it’s business and not personal, you’re selling your time, skills and experience, and that comes at a premium.
If you’re in need of expert advice from a team of specialist contractor accountants, get in touch. we’re able to offer tailored advice based on your circumstances, and switch you over to our limited services at the touch of a button. Get in touch to find out more.
Note: All the information and advice in this blog post was correct at the time of writing.
