Every day I hear same words from my senior candidates, “I was on $1500/day previously”. That’s great but this is a different market and you need to fall in line with what the market is currently paying. For some clients it can be a buyers’ market within certain skills, but not all of them. We are still seeing candidates achieve above average rates in Application Development, Security and Change Management. Project Managers and Architects seem to have been the hardest hit with client’s expectations on rates being lowered by a couple of hundred dollars per day.
Another area that seems to be pushing the rates down is in the consulting space where Service Providers are being asked to sharpen their pencils or not get their contracts renewed. Their solution is to have their contract staff reduce their rates or get replaced by others happy to work for less.
My advice to contractors out there – don’t take your current daily rate for granted. Economic situations change and so will your rates. Too many times I have seen contractors base their earnings on their most recent contract and then purchase new homes or cars and other things only to find that when that contract ends they cannot afford to take less dollars. Have a buffer and make sure you plan for tomorrow.
Remember, a contract is only as long as the notice period.