Preparing for rate increases

If you have had a temporary worker in your team for a long time, the original contract rates have probably become outdated and may no longer reflect the experience gained and the day-to-day responsibilities they have taken on since starting. We remain in a heavily candidate-led market where good talent is difficult to find, therefore keeping staff with experience, whether they are a permanent employee or a temporary worker, could prove invaluable to your business. This is why it's important to review temporary worker rates on a regular basis. Talking money, isn’t always the easiest subject to raise, more so if you are on a temporary contract and money is often the reason a temporary worker leaves to take up another assignment.  Part of the service we provide you with is advising on rates and how and when to review them and handling the conversations on your behalf.  

Review all rate increases on a case-by-case basis 

Every temporary worker will have a different journey since they joined you and any increase in rates should be based on personal evaluations. Yes, you might have multiple temps in similar positions, and you may need to consider introducing a range of rates based on experience level, but it is not guaranteed that they will all need an increase at the same time and temps should not be discussing their pay with each other. 

Consider the value added by the temp 

How much has your temporary worker achieved since they started? Have they taken on more responsibility and upskilled within their role? Do they have new qualifications or courses they have completed to provide a more valuable position in your business? Are they involved in the training and support of other colleagues? What are your competitors offering for the same skillset?  

Consider all of the above so that you can assess the temporary workers’ development since joining your evaluations feedback to help them develop even further. 

Market insights 

After your temporary worker has been with you for an extended period, your recruiter will be able to provide you with market insights to compare the rates of other temporary workers in similar job roles, industries and geographical locations. This might help you to reason if an increase is appropriate. 

Making an informed decision 

If the request is from either the temp or your recruiter, it should include the current rate, how long they have worked for the company, job title (and any previous job titles they have had whilst working with you), and the new rate they are hoping for. All the above should be supported by justification for the rate request, helping you to process the request further.  

If you cannot increase the rate 

If you have decided against a rate increase, your temp deserves to understand ‘why?’. Lead an honest conversation and set a future date to review this again. 

A review date for the near future will give the temp time to make improvements and allow you to consider the financial circumstances of any changes at a later date. This will help the temp feel encouraged that a rate increase is still possible and something that they could achieve based on the requirements you set out.  

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