How to negotiate salary as a contractor

When embarking upon a new project, it is important to reflect on the pay rate being offered and ask yourself if it matches your expectations and acquired skill set. If not, then guess what? You better get negotiating! Don’t worry, it’s not quite haggling in Camden, and our team is here to show you the ropes…

When should you consider negotiating your salary?

There are many reasons why you might decide to negotiate your salary, including when: 

• You’re not being paid in line with the industry standard 
• You’ve moved location (e.g. London which generally pays higher)
• Your skillset is more in demand
• You have significant experience in the given area 
• You’re considering signing a new contract!

Know the market rate

Get networking and find out what other contractors in your sector are being paid for their services. It also wouldn’t hurt to do some market research, as pay rates change all the time and so it’s crucial to check if you’re still being paid in accordance with the industry standard. Location can also have a huge impact on your earnings, so bear this in mind if you move to start a new role at any point. 

Remember each contract is different

It can be easy to fall into the pattern of keeping the same pay rate for each contract you take on. However, it is important to remember that each contract is different and sometimes even requires a unique set of skills. Even if you’re working for the same agency, you should always revisit your rate before agreeing to a project. 

You don’t have to agree to everything

Just because you’ve been offered a project, doesn’t mean you have to take it – especially if it doesn’t meet your salary expectations. Make sure to ask your agency/end-client for an overview of the role’s hours, area of expertise and skill requirements so you can work out a suitable rate. 

Never undersell yourself 

Be confident in your reasons for negotiating, and remind your employer of your unique skills, level of education and vast experience. Sell yourself as an asset to the company in question – because that’s what you are!

We hope this article inspired you to go for gold! Good luck. 

Get in touch with our team via [email protected] if you’re looking for an accredited umbrella to take care of your finances.