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Standard inflationary rises in day rates for freelancers? What's right + fair here?

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    Standard inflationary rises in day rates for freelancers? What's right + fair here?

    I work in media and work for a company on a day rate, I work via an agency who originally got me the booking and that was 5 - 6 years ago. I do not work there that often though - I do very short bookings usually one week at a time and freelance in total about three months of the year.

    Two years ago I decided to ask for a rate rise and the main reason for this was because I had not had one in about four years and as you all now inflation happens and all our bills and costs of living increase. I succeeded in getting my pay rise.

    Unfortunately though I really had to kick my feet in the air to get this day rate rise - not because the company so much didn't want to pay more but the agency that I work through was pushing back on it and didn't want to rock the boat. They argued that when you look at the day rate I earn toted up for a full year I earn more than a full time employee but my response to this was

    1. I don't work there full time - I work there very randomly when they are essentially in need of support especially those times when they are up tulip creek.
    2. I actually do holiday cover for these permanent members of staff so essentially it is a supportive role for them (so it is kinda a benefit for them that they don't have to cover themselves for their holidays)
    3. No doubt permanent members of staff has a long list of benefits that I do not get
    4. They get annual pay reviews for sure and we do not know the discussions that go on behind closed doors or the pay rises that are agreed on. I hope they all get what they deserve but I cannot really comment on that.

    Of course, as soon as the increase was approved though the agency were singing off a different hymn sheet.

    And in the past two years, I have started to think about things differently. Why did I have to kick up such a fuss just to get a standard pay rise? If I didn't ask I think I would still be on the same rate at 5 years ago. How can they think that this is ok and just keep people on the same amounts for 5 years which is essentially a 10% reduction in real terms.

    Why doesn't my agency look at this annually? It is now exactly two years since I have had a rate rise and I am going to ask for another one but I want to go about it differently this time. I intended to ask for this again after one year but it slipped my mind!

    Any other people working in a similar way ongoing for a very long time via an agency? How often do you have rate reviews?

    #2
    The only way to get a pay rise is to get another gig.

    Comment


      #3
      Two years ago I decided to ask for a rate rise and the main reason for this was because I had not had one in about four years and as you all now inflation happens and all our bills and costs of living increase. I succeeded in getting my pay rise.
      Why doesn't my agency look at this annually? It is now exactly two years since I have had a rate rise and I am going to ask for another one but I want to go about it differently this time. I intended to ask for this again after one year but it slipped my mind!
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by BrilloPad View Post
        The only way to get a pay rise is to get another gig.
        That's not true. I succeeded in getting a pay rise two years ago. And I'm kinda doing them a favour by not moving around.

        Also I should mention that I have a business in addition to this freelance work and that's why I freelance so little. I don't actually need the cash but I just like to mix things up a bit!

        Comment


          #5
          Originally posted by mhuk2016 View Post
          Why doesn't my agency look at this annually? It is now exactly two years since I have had a rate rise and I am going to ask for another one but I want to go about it differently this time. I intended to ask for this again after one year but it slipped my mind!

          Any other people working in a similar way ongoing for a very long time via an agency? How often do you have rate reviews?
          Maybe because they're not "your agency" but a broker at best? I.e. matching contractor company to client company and making their money from the difference between the two rates?

          Forgive me if I have misunderstood the nature of the relationship in place...

          Comment


            #6
            The usual answer is that if you want a rate rise, you have to be delivering more than you were originally contacted to deliver in some way. In your case, if I understand it properly, that's not an option. So why are you not pricing each work package separately at an appropriate rate with a small retainer to ensure your availability?

            Remember that freelancing is not like permanent work. You don't get points for longevity...
            Blog? What blog...?

            Comment


              #7
              Originally posted by CatOnMat View Post
              Maybe because they're not "your agency" but a broker at best? I.e. matching contractor company to client company and making their money from the difference between the two rates?

              Forgive me if I have misunderstood the nature of the relationship in place...
              Ok. That is a certainly one way of looking at it but I have bills to pay also and inflation is running at 3% now for the last 12 months so don't see why I should be made feel like I am entirely out of line for asking for this.

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                #8
                Originally posted by malvolio View Post
                The usual answer is that if you want a rate rise, you have to be delivering more than you were originally contacted to deliver in some way. In your case, if I understand it properly, that's not an option. So why are you not pricing each work package separately at an appropriate rate with a small retainer to ensure your availability?

                Remember that freelancing is not like permanent work. You don't get points for longevity...
                Hi.

                Thanks for your reply - I am not sure what you mean by "small retainer". I don't think I would be able to quote for separate work packages as I need to be quite flexible on a daily basis.

                I am inclined to disagree with your first point though - what I really want to look at here are pay rises based on standard cost of living increases which we all face.

                Am I really that unreasonable for asking for this especially taking into account the fact that

                1. Inflation for the year is running at 3% which has mostly been driven by changes in the value of sterling
                2. The company that I work for continues to perform very well financially and the currencies that it bills in are mostly European - so it is earning way more GBP for the exact same reason that I raised in point 1 (change in the value of sterling)
                3. Reason 2 been taken into account everyone around me is indeed getting a pay raise.
                4. I know that there is nothing to say that an employer has to give you a cost of living pay rise each year, though you'll find that most do. Unless we are in the middle of a recession or the company is struggling I think that that's the fair thing to expect.

                In terms of delivering more than when I just started, I completely agree with you but I see this as separate to the cost of living pay rise - this is how it would work in performance reviews.... 2% standard rise for adequate performance and maybe 3% for exceeding expectations. In terms of value added here, there would be something here yes as I am so experienced now in everything although I don't think I can learn anymore so wouldn't expect much more than a cost of living pay rise in the future.

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                  #9
                  Netflix are charging me a quid more from next month, its going up from £8.99 to £9.99, am increasing my rate to my client by 10% to compensate

                  Comment


                    #10
                    Originally posted by mhuk2016 View Post
                    Ok. That is a certainly one way of looking at it but I have bills to pay also and inflation is running at 3% now for the last 12 months so don't see why I should be made feel like I am entirely out of line for asking for this.
                    In no way did I mean you should feel out of line, just that in my experience the agency is not going to look out for you in that way, you'd need to drive the change yourself, they are not generally "your" agent as such and may well rather keep the margin they have in place rather than put it at risk by upsetting the client trying to increase it (when for them the uplift is probably marginal).

                    It then just becomes a commercial negotiation where it's your company's prerogative to request an increase (typically at renewal time unless the scope has changed and more is being delivered than originally anticipated) and the client's to accept, refuse, or meet you somewhere in the middle.

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