Asking for a Raise

Some people here do not understand the contractor/shop/client relationship.

HR is not involved to the extent that they could be useful. They probably vetted the shop and that is about it.

You could first go to the shop and ask them to reduce their margin because you don't want to cause any waves and like the place etc etc. They may kick you something.

You could approach you boss and ask for a raise. You boss may, but probably not, give you all you want. Tell your boss the shop has a high markup (if you don't know your bill rate to the company, they probably do) and ask him to put pressure on the shop to reduce it.

Ideally, you get a little from your boss and a little from the shop.

I have done all of the above in the past both successfully and unsuccessfully.

Also, an offer from someone else motivates the shop greatly.

edit: Don't go to HR, they are useless, will tell the shop and the shop will have your replacement lined up before you even have a chance.

^ interesting. So you have gone to both the agency and your boss and got both or just settled with getting a little from one?

Im worried that if I got an offer elsewhere Id prob take it :/


What do you think about getting letters of recommendation from current directors taht you support? Effective or lame?

How do you approach the raise... ask for what you, high ball, or take what pittance you can get so you dont price yourself out of the game.

Whatever you do, don't do what my nanny pulled on me this morning... "My friends tell me I'm crazy to work for $__ an hour !!"

Originally Posted by Davidko19

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^ interesting. So you have gone to both the agency and your boss and got both or just settled with getting a little from one?

Yes to all.

Originally Posted by Davidko19

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Im worried that if I got an offer elsewhere Id prob take it :/

You may have to if it is that important to you. Avoid chasing the dollars though, concentrate on what will make you happy.

Originally Posted by Davidko19

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What do you think about getting letters of recommendation from current directors taht you support? Effective or lame?
I don't think it would help. Your immediate boss is your best ally.

Originally Posted by Davidko19

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How do you approach the raise... ask for what you, high ball, or take what pittance you can get so you dont price yourself out of the game.

I would approach your boss first. If you have an offer in hand, you have a data point. Mention that you think you are a valuable member etc and would like him to look at the possibility of a raise. You may mention you heard new people are coming in higher. He may come back and say he is paying the same bill rate for both of you, then you know you will have more luck with the shop (preferably with his help). If the rate is different, ask for parity.

I would not get too aggressive with the boss unless you have an offer in hand and really would leave. On the other hand I was called all kinds of names by the shops for my outrageous demands. Finding out your bill rate would be a good position to be in. SAP is not as secure as people think, or you boss may just tell you.

So, highball the shop in the markup reduction, ask the boss for fair wage.

(I referred to your boss as a he because I am too lazy to be pc)

She's probably much better looking than you are. Or at least I hope she is.

I agree that whatever you do you shouldn't bluff. Backfires way too often and you may find yourself unemployed, let alone without a raise.

Originally Posted by teddieriley

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She's probably much better looking than you are. Or at least I hope she is.

Shes not.....

Dude...just strap on the wolf shirt, march in to the bosses office and take care of business.

I'm pretty sure salary negotiations were listed as being among its many magical powers.

So, did you get your raise?

Take a permanent position over a pay raise.

Originally Posted by Toiletduck

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So, did you get your raise?

Interesting you ask...

I set aside time to talk to my direct supervisor. Im nervous but practiced my speech and talked for about 10 minutes (he's realtively new) and did kind of an informal personal review. I went over my projects from 2009, how I am self taught on the job, listed my qualifications/achievements, and how I want to be a part of the team in the future. I asked what the next step in the career progression was and how to get on full time. (Being a contractor and not having paid holidays, vacation, sick time, etc... sucks. Esp around the holidays when you CANT work)

He said he would have to check with our dept director, but that realisitically they keep us lower level workers as contractors for a number of reasons (cheaper for the dept./the company, easier to replace, etc.) and that without moving to another dept I probably wouldnt get on full time here. I figured that was the case so then followed up with asking to renegotiate my current rates as a contractor.

Our director wants EVERYONE to leave our agency and be an independant contractor working for the company to cut out the middle man cost. I will then get a "raise", based on a percentage of whatever the agency fee was. He said that the company will not pay above what they paid the agency (which I know is bullshit). So for instance: If I make $20 now and they pay the agency $25, they will pay us no more than the $5 difference, but most likely in the $2-$3 range (to save them money).

So basically Id be getting a cost of living increase, NOT a performance based raise - merely because I am saving the company money. And this goes for all of us contractors - so its not a special thing they are proposing because Im so great. PLUS, now I will have to source my own insurance and do my own taxes - but I will also be able to write off a lot of expenses too (can set up a corporation, write off gas, etc...).

So Im torn, yea, anything is nice in this day and age... but if everyone is getting the same thing and its not based on achievement then why did I bust ******? Plus Id STILL be getting 33% LESS than my co-worker doing the same exact job.

What do ya'll think? Good deal or got the shaft?


Cliffs:
- Cant get on full time due to department structure
- Will get a "raise" if I leave my agency, but its not performance based. Just b/c I save them the head hunting middle man fee.
- Still make 33% less than my co-worker doing my same job
- Nice? Sure, anything is. Disappointing? Definetly.

I have about 20 years of consulting experience, I'm partner in a consulting company and I've had 100s of these conversations.

- You will never get a performance increase from a client. Forget about it, that's just not the way it works.

- You need to say to your client, "I'd like to move my rate to x. I feel I'm performing at this level, I believe others are being paid in this range and I've identified several opportunities in the marketplace that are in line with this compensation level". Ask for this rate when you are in the middle of a key project(s).

- Your client may negotiate the rate, so come in high. A typical year-over-year increase is 8-10%, a 33% increase is impossible unless the absolute numbers are low (300 per day to $345/day).

- As others have said, you need to have a backup offer. Start a job search immediately and have an alternative(s) before you have this conversation. The new year is a very good time to start looking.

- Finally, the firm does not seem like a great place. If your career interests lie in a FT career path, I'd look elsewhere (a competitor is a great starting place).

- you may want to research your agreement with your agency. If you were working for us, your employment agreement would prevent you from working directly for your client for a period of one year.

Damn homie, where were you 2 weeks ago?

Originally Posted by vinouspleasure

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- You will never get a performance increase from a client. Forget about it, that's just not the way it works.

So I noticed...

- You need to say to your client, "I'd like to move my rate to x. I feel I'm performing at this level, I believe others are being paid in this range and I've identified several opportunities in the marketplace that are in line with this compensation level". Ask for this rate when you are in the middle of a key project(s).

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Kind of said that, but not as firmly. I havent found other opportunities. I dont wanna price myself out.

- Your client may negotiate the rate, so come in high. A typical year-over-year increase is 8-10%, a 33% increase is impossible unless the absolute numbers are low (300 per day to $345/day).

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Sounds right, but I found out someone on the same level with less time in from the same agency is making that much more, so I want to be there.

- As others have said, you need to have a backup offer. Start a job search immediately and have an alternative(s) before you have this conversation. The new year is a very good time to start looking.

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REALLY need to do this. My resolution.

- Finally, the firm does not seem like a great place. If your career interests lie in a FT career path, I'd look elsewhere (a competitor is a great starting place).

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Its a fortune 100 company. Cut-throat place, but defiently makes you a better employee. Id like to FT here but could also find a similar job with half the pressure.

- you may want to research your agreement with your agency. If you were working for us, your employment agreement would prevent you from working directly for your client for a period of one year.

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I need to get a copy of that. Pretty sure it says that. Dont think they want to negotiate a buy out but I can do it secretly. Hell, my boss is. He went from an Ad Agency to the client side with a 2 year non-compete and they didnt care.

UPDATE:

Just got offered 15% more than what Im making now. Still 12% less than my co-worker but not as bad as 30%.

Now I have to set up my corporation and ****. Ughh..

congrats, but I hope you're not going to cancel your job search. You should be in the market every 6 to 12 months just to understand your comp vis a vis what's out there.

I have had an llc, s corp and a c corp for consulting. I found llc easiest if you're the sole employee.