Wednesday, 24 November 2010
My question is: “Do many contractors consider the potential damage that requesting a rate increase could create?”
I’m not saying that asking for more money at renewal is always going to cause an issue, but I do believe that sometimes a client’s positive opinion of a contractor may reduce when they ask for a hike in their daily rate – especially if their role hasn’t changed, their responsibilities haven’t increased and their workload hasn't grown.
I can (and do) see it from both sides:
- the client doesn’t want to pay any more for a contractor than they currently are paying and don’t like being held to ransom (in their opinion) when a contractor has become business critical,
- and contractors want to ensure their rate is in line with market rates, or what they perceive to be their worth for the services they are providing (this is clearly a hard thing to measure!)
I think the problem often stems from the fact that, for whatever reason, many clients seem to take rate increase requests personally and sometimes hold it against the contractor for asking – whereas contractors see it simply as a business transaction for the provision of services and argue that negotiations like this happen across the globe in all industries.
One of my long-standing contractors (who has worked for me for over 8 years at a number of different clients) has always taken a pragmatic approach to his rate. “Rob, if my rate is a bit lower than most of my colleagues, and I don’t usually ask for increases at renewal, I’ve found that I tend to get renewed for a lot longer than most of my colleagues”. One of his contracts lasted for around four years, whereas the majority of his colleagues who were demanding 30-40% higher rates tended not to last much more than 6-12 months.
Was this due to their rate demands, or just because my contractor is better at his job than the others? Hard to say, but he’s convinced that his easy-going attitude to rates has certainly played its part and he has never been out of work for more than 2 weeks in over 10 years of contracting.
Personally, I think his success is due mostly to him being an excellent Project Manager, but I do believe that his stance around rates has helped.
I guess it depends on your own personal opinion, attitude and ultimately what drives you, as to what approach you adopt.
Many contractors are in the contracting business predominantly for the money, therefore they want to maximise their earning potential and will push their rates as high as they possibly can. If this causes ill feeling with the client, then so be it – they are here to manage and deliver a project for the client, not to make life-long friends!
Others like to work in a friendly, positive atmosphere without any ill-feeling so don’t want to push for a rate increase in the worry that the client might hold it against them.
And others (like my contractor mentioned above) take the pragmatic business approach that he will earn more money in the long-term if he is always in work at a slightly lower rate, rather than have a higher daily rate but risk not get renewed as often and being “out of contract” more often.
Friday, 22 October 2010
Each year, the RecruitRank Awards recognise and reward recruitment agencies who have demonstrated excellence in candidate service and communication over the preceding 12 months.
Sanderson Recruitment are delighted to be up for the Most Improved Recruiter Award.
This award category recognises agencies that have used their candidate feedback to change their business practices and ensure that they offer candidates the best possible recruitment experience.
Nick Walrond, Sanderson's Managing Director, commented:
"It's great to be recognised by our candidates and the fact that this nomination is a result of their response makes it all the more special to us. We pride ourselves on providing a high level of customer service and feedback from our candidates and clients is essential to enable us to continually learn and improve."
Unlike any other Awards in the industry, the RecruitRank Awards are based wholly on feedback from candidates themselves rather than industry figures. This year's winners were selected on the basis of 12 month's worth of feedback from job seekers.RecruitRank is Jobsite's ground-breaking system that tiers recruitment agencies according to feedback from candidates. If a candidate has applied for a vacancy listed by an agency on Jobsite, they're invited to comment anonymously on four different areas:
• Overall impression of the agency
• Maintaining contact and updating you on progress
• Understanding your needs
• Knowledge of your industry sector
Keith Potts, Managing Director of Jobsite, said:
"The RecruitRank Awards give agencies the chance to celebrate their great customer service and be rewarded for looking after their talent. Not only that, the RecruitRank Awards provide recruitment agencies with real credibility in the eyes of employers looking for that elusive talent and more importantly reassure candidates looking for a recruitment partner they can trust."