Career Tips & Advice
Negotiating a higher contract rate
Negotiating a higher contract rate can be awkward and knowing how to even raise the issue in the first place can be difficult.
Nick Dunnett, Director of Robert Walters’ Contract Division, details techniques that can get you that all important pay rise.
Preparation is key
Whether you have been in a contract role for a while or you are being interviewed for a new job, you need to prepare a compelling argument why you deserve more money than is on offer. The more legitimate reasons you can come up with, the better.
Researching the market rate
Researching the going market rate for someone in your role and where you fit with this is generally a good start to your preparation. For example, our quarterly job forecasts and pay rates app provide an overview of rates and salaries across a variety of sectors. Also remember that your recruitment consultant deals with this sort of information on a daily basis, so do ask them for advice.
Wherever you fit with the market rate for your role, you then need to come up with considered reasons for your proposed pay rise.
Discreetly raise the issue
When you first raise the issue, do it discreetly and away from your colleagues. Booking half an hour with your line manager in a private meeting room is better than a ‘quick word’ because it allows you to outline exactly why you deserve a higher rate reason-by-reason.
Be confident in your arguments
During the discussion, you need to present a clear and confident argument for your pay rise. Unless you genuinely believe you deserve more money, you will have trouble convincing your manager. Again, this will primarily come down to the amount and type of preparation you have put into the meeting. It is also important not to get agitated when your manager questions your arguments or shows some sign of disagreement with what you are saying. Throughout the meeting, you need to demonstrate clear understanding of your employer and where you fit in the organisation, and the role and how your skills are relevant to it.
Actions you can take to make yourself worth more:
Seeking additional responsibility
Taking on more responsibility at work is often key to securing a higher rate. Not only will this mean you are doing more work for the same money (and therefore provide a compelling argument for why you are worth more), but it will also show there is an interest to grow outside of the current job specification. Employers usually value this ambition and are generally keen to retain people with this quality.
Up-skilling
Professionals that proactively up skill – through extra training, courses and gaining additional qualifications – really make themselves stand out. For example, projects professionals with experience of PRINCE 2 training have additional skills that other staff at a similar level may not have. However, it is important that any up-skilling is relevant to the role – otherwise it will not have nearly as much impact when you use at as a reason for a higher rate.
Work experience or internships
If you are in between roles, be open to work experience and internships to gain exposure to different ways of working than you are used to. Working for reduced or no income is a powerful indicator of your willingness to learn and future ambition and can be used as a selling point in interview or when rates are being negotiated further down the line.