New research has been conducted by business advisory group IMS Executive Ltd amongst 2,000 interim executives to determine the manner in which they, including many of those who work through umbrella companies, would cut their daily rates of pay.
The data from this research has shown that most individuals have actually already cut their rates as low as they possibly can. However, for those executives who are currently charging from £500-£900 just over half said that they would consider reducing their rates between 10% and 24%. Lower paid contractors said that if it was a choice between cutting rates or being unable to continue working, they would cut their rates by up to 40%. Interestingly, the most highly skilled and highly paid interim executives were actually opposed to any cuts in their pay rates. These specialised individuals pointed to their change management experience; arguing that their track record had resulted in millions of pounds saved for the government and therefore any cuts in rates would be ‘short-sighted’.
IMS Sales and Marketing Director, Tony Shearing, believes that the hiring of freelance staff is an economically viable option for businesses as they have access to these skilled workers without being responsible for paying out benefits applicable to permanent employees such as NICs and pension contributions.
He believes that contractors should be considered value for money as long as they have the skills and experience to deliver the results the client is looking for. It should not be about how little that contractor is willing to do the job for.