We got sent this from IT Contractor Frank after he got his contract offer (not real name).
IT Contractor Frank
Need a bit advice, I am leaving a contract with the companies blessing as I have family issues. (wife expecting).
My CV got put forward by two agencies for the same role somewhere else, one offered £380 and the other £405.
The £380 per day agency came back with an interview offer and I succeeded with a contract offer.
I want my rate matching ideally with what was offered by the second agency.
How should I go about this?
I am assuming the client is paying the agencies the same amount.
Thanks in advance
Dr. McLaughlin’s IT Surgery
I don’t think you can assume that the client is paying the agencies the same amount.
They may have taken your CV from the first agency as it was the cheapest. I think that is what anyone would do.
However, you may be right. The first agency may be taking more than the second agency.
You just know and it is likely that you never will.
Play Hardball with Contract Offer
The only thing you can say to Agency 1 is that you were put forward at the higher rate by the second agency and play a bit of hardball.
However, agents are very quick with their answers and playing hardball is a bit of a risk.
The agent is likely to say that the first agency probably got rejected as they were too expensive.
The only way would be to call up the client and ask the agency’s rate but that is too risky.
You might even lose the job over it if they tell the agency.
So, you hold no cards.
However, you at least have an indication that you might be able to get more money in the future, i.e. the contract offer at renewal time.
It is actually worse to find out that the agency is taking a small cut for you as that means that you won’t be able to get any more out of them at renewal time and that you’ll have to get it all from the client.
If I were you I would take the contract offer and after a while, when you’ve got both legs under the table, ask the other contractors what they get.
Ask the Client
If you get on well with your client you could ask him or her how much the agency are taking for you.
If you get on well with the Secretary who processes the contracts then you might ask him or her.
Once you have that information that gets you in good position for renewal negotiations as you can get a bit from both the client and the agent.
Thanks for your advice. I told the agency I wanted a higher contract offer as I could have been put forward for a higher rate via the second agency.
I also told them my current company was offering me an extension on a better rate!!
After receiving a few calls from the agency to lower my rate I got an extra £20 per day from them!!
Well done Frank.
It just shows you that if you are prepared to play hardball with the agency that you can win.
Frank got 80% of the extra he wanted on his contract offer.
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