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Ask HN: Renegotiating Rate with Consulting Firm

A local firm is in dire need of developers, but has a terrible reputation as a sweat shop. I took a position at $X an hour for a consulting agency (W2) working on location at the sweat shop. After being on the job for about a month, I discover that other developers of similar or less experience are making 10-15% more on their hourly rate than I am. So the question is; what's the etiquette for asking for a raise in these situations? When signing on I did haggle a bit and got a little better than the initial offer, I had no way of knowing how much room there was to negotiate. The rate I'm currently at was a significant raise for me, but I also don't want to leave any money on the table. Has anyone else dealt with this?

sharemywin 11y ago
work there for about 6 months get a big win on a project then jump.
osullivj 11y ago
You need leverage. That's how you improved the initial offer on signing - because there was the implicit threat you'd not sign. To get another raise you need a credible alternative gig, and to be prepared to walk. You also need to have proved your worth, so they want to keep you.
- euroclydon 11y ago
  Also, timing. It's best to ask when you have a big responsibility on a project that's just starting up. And... confidentiality... While compensation transparency is hip these days, I suspect it's not so popular at less 'enlightened' firms. I would make it clear that any raise you get, and your pay rate in general will not be shared.
brudgers 11y ago
I look at it like this, your employer thinks "fair" is paying employees the least amount the employee will accept. Negotiating a higher rate doesn't change the nature of that relationship. It's still an arms-length labor versus management context. In my experience some employees actually like that kind of relationship. Others don't. Decide on what's really valuable to you. Good luck.
vldx 11y ago
You're saying you had significant raise in the rate w/ this contract - use this as leverage; i.e. do your best at your current role, but passively seek other possible jobs, where you'll be able to kick-off negotiation at least +20-30% from your current rate.

sharemywin 11y ago

work there for about 6 months get a big win on a project then jump.

osullivj 11y ago

You need leverage. That's how you improved the initial offer on signing - because there was the implicit threat you'd not sign. To get another raise you need a credible alternative gig, and to be prepared to walk. You also need to have proved your worth, so they want to keep you.

euroclydon 11y ago
Also, timing. It's best to ask when you have a big responsibility on a project that's just starting up. And... confidentiality... While compensation transparency is hip these days, I suspect it's not so popular at less 'enlightened' firms. I would make it clear that any raise you get, and your pay rate in general will not be shared.

brudgers 11y ago

I look at it like this, your employer thinks "fair" is paying employees the least amount the employee will accept. Negotiating a higher rate doesn't change the nature of that relationship. It's still an arms-length labor versus management context. In my experience some employees actually like that kind of relationship. Others don't. Decide on what's really valuable to you. Good luck.

vldx 11y ago

You're saying you had significant raise in the rate w/ this contract - use this as leverage; i.e. do your best at your current role, but passively seek other possible jobs, where you'll be able to kick-off negotiation at least +20-30% from your current rate.