The bullish ‘take it or leave’ approach to pay rate cuts displayed by many leading banks toward experts in the field of IT contracting may be far more counterproductive than imagined, according to a new poll of 160 techies working through umbrella companies.
It appears that a number of technology hirers have copied the big boys in the banks and implemented unnegotiated pay rate cuts mid-way through contractor placements. Whether this turns out to be good for business in the longer term is seriously open to question – a mere 8% of the PAYE umbrella contractors polled said that they would simply roll over and accept a cut.
Nearly a third (29%) said they would flatly reject a pay cut and seek a new placement with immediate effect, while over half (54%) said they would seek to ‘jump ship’ as soon as a better role appeared.
The poll was carried out by Pulse, whose Chief Executive, Chris Futcher, said:
“With cost control still a priority, it is worth noting that any attempt to scrimp on the fees of short-term staff is unlikely to work. The message to employers is clear; reducing contract fees halfway through an engagement is likely to mean losing valued staff mid-way through a project.”
Meanwhile, a survey of 700 IT professionals and finance workers by the professional resourcing firm Experis found that almost half of them are seriously considering working abroad.
UK businesses, it would seem, need to pay rather a lot of attention to how they can retain their most skilled and talented staff – a skills exodus could well be on the way.