Post # 1
I’m a freelance copywriter who’s been working on a full-time contract with a client for the past year. I got the opportunity through a recruiter who would take a substantial cut of each check, although I’m not aware of what the percentage actually was.
Now that the contract has ended, the client is free to work with me directly and wants to keep working together for another 6 months but at 30 hrs/wk instead of the full 40.
They asked me to throw out a rate I think is fair, but in thinking through it, I realized that unless I raise my rates substantially, I’d actually be taking a massive pay cut by staying with them due to the reduction in hours.
Would I be justified in raising my hourly rate enough to where I’d be making at least the same amount as when I worked full time? Due to working through an agency, I hadn’t been making anywhere near market value.
A little background on me: I have my master’s degree and over 7 years of relevant professional experience.
Post # 2
I think it would be fair to keep the rate the same to the company so if they paid the temp agency $50/hour then can keep paying that, but to you. That way the company is likely paying the same rate
but less hours (saving them money overall), but you are seeing all of the rate so your pay stays about the same. Plus you will now have more hours a week to pick up other freelance jobs.
Post # 3
I agree. Don’t take this as a pay cut. If they’re expecting the same amount of work for less hours then definitely charge a higher rate.
Post # 4
The last two posters are correct. Even if the rate you ask for gives you the same total salary, they are still getting out ahead, because your company was getting a portion before you got your check. Now they can pay you a “discounted rate,” and still get ahead. Just make sure your total pay is AT LEAST what you were making before. Shoot higher, if they want to negotiate down, they can, but if you aim too low, you will never know what you missed out on.
Post # 5
Also don’t forget to factor in employee benefits. Will you be a contractor or will you get other benefits. If you will not have other benefits you should probably factor that in to your rate.
Previously I did contract work for an agency and received less than 50% of what they charged users, and some people did not even use all the hours that they paid for.
Post # 6
oh! and was your agency taking taxes out of your pay before? Were they paying the employer portion of taxes? That’s another thing to consider – depending on how they pay you your tax liability may go up substantially so make sure you factor that in.