Addressing rate increases

Contractors can work with the same client for a long time and often this means they'll outgrow the rates of the original contract. A lot of people may feel awkward or uncertain about asking for rate increases, but with the right information and approach, a pay rise is certainly achievable. Here's some advice on how to request a rate increase - 

Always approach your agency first -

Your recruiter will have a better understanding of the market and other contractor’s rates in similar positions, so they can help to ensure your request is realistic and, in most cases, your recruiter would be more than happy to have the conversation with the client on your behalf. 

Think about the rate you feel you deserve and how you can justify the increase -

Have your role or responsibilities changed since you started? Have you upskilled? Have you undertaken any qualifications or courses? Have you trained or mentored any colleagues? Has the market rate for your skillset increased? Are you being asked to travel more? Have you saved the company any time or money? - Your reasons should not include your personal circumstances, such as a mortgage rate increase. 

Never refer to somebody else’s pay rate -

Contractors shouldn't be discussing pay rates with each other. It would also open you up to a comparison against the other contractor, and you may not always be compared how you had in mind. 

If you're requesting the rate increase directly, decide the best approach -

Does your manager prefer to have facts presented to them in text format or would they rather discuss in a face-to-face conversation? You should also consider your own preference as well. 

Requesting via email -

You could send the email directly or ask your agency to forward the email on your behalf. You should include your current rate, length of time working for the company, your role title (including if it has changed since you started) and the new rate you're looking for. This should all be followed by a number of bullet points clearly stating the justification for your rate increase request. 

Requesting face-to-face -

Ask your manager if you can schedule a meeting about a potential rate increase. Once in the meeting, highlight how much you've enjoyed working for the company, then explain the reasons why you're requesting a rate increase using the 2nd bullet point above and state the increase you’re requesting. 

Use leverage sensitively -

Threatening to quit can create negativity and could potentially leave you without a contract. Avoid getting personal and if you do have another offer, explain that you're just trying to make the best decision for your career. 

If the answer is no -

You have an opportunity to ask ‘why?’ - The company may not be able to afford the increase or there could be other legitimate reasons, but if you're keen to continue regardless, you can always ask for a promise to revisit the conversation in the future and set a date for the next review.

If the answer is no and your manager isn’t willing to review it in future -

Be courteous and maintain your professionalism throughout. Even if you do decide to leave the company because they won’t increase your rate, it's important to fulfil your contract and carry through the terms of your agreement - This will ensure you don’t burn any bridges for the future, you never know where your manager could end up working next! 

For more advice and tips to help you address rate increases click here get in touch with our teams.