Hourly Pay negotiations

[mae0111]

I'm sure this has been discussed before, but I tried to search and I wasn't able to find anything.

Does anyone have any advice about figuring out and negotiating an increase to my hourly rate as a contractor?  I've done it as a salaried employee, and it was always very straightforward because I could point to performance, hard metrics, and proof that I was grossly underpaid to make my point.

I did a bit of research, and assuming my PT hourly rate extended in 2080 hours in a year, I'm literally not even showing up on the scale of where my salary should be if I was a FT employee.  The absolute low end of my job, with 2-3 years experience, would be making 10K per year more than I am making on the very low end AND benefits.  Midrange would be more like $40K more.

It would be about a 15%-20% pay increase to get me into the range.  And again, the positions I looked up are also getting benefits, which aren't included in the salary.  Assuming a 35% total cost increase for an FTE, and my boss is getting a bargain with me.

BUT...

The flexibility is awesome, I work when I want to.  They want me to work more, and I plan to once the summer is over, but it's nice to be able to take a day here and there, leave early and just sign off, etc.  They're paying me almost like a college intern, and they're getting someone with 25 years of strategic experience that can also dig in to the weeds and get work done.  It's not easy to find someone who can/will do both.

I don't want to price myself out, but it's kind of starting not to be worth it to me to add a level of stress for such little money right now.  It has the potential to be more hours and even FT down the road (which I probably wouldn't want), so I didn't want to just give it up completely.

They seem generally happy with me, but slower than they'd like.  I'm slower because I work the hours I agreed to and they need like 3 more of me, and because I keep getting random stuff thrown at me.  When they hired me for 10-20 hours a week, it was for one business with 5 employees.  Now it's 3 businesses with a total of 30 employees.

How would you approach it?  What would you ask for?  

[waverly]

I don’t really know. I think you maybe started out too low so it’s kind of hard to say hey my rates have doubled. Around here contractors make anywhere from $40-100 and more per hour. You may need to think on what money you would need to continue working there. If you were in range I would say cost of living increase plus a little extra but it sounds like you aren’t really in range at all.

[twinmomma]

Can you raise it as a change of scope conversation? Point out the additional brands you're managing, the additional projects and hours you're taking on, etc?

maybe you could present it as "If I was pitching you now as a contractor for all of this, my rate would be XYZ. Since I am currently at ABC, let's meet in the middle at...."

[mae0111]

waverly, I absolutely went in lower than I should have. If I was consulting at my old company, doing my old job, I would have gone in at $200-$250/hr. That's what we paid consultants at my level. I went in at less than 1/4 that, which felt appropriate at the time based on what they wanted to do.

But, to twinmomma's point, the scope has definitely changed since I started, and I'm doing a lot more, different, and complex things that weren't necessarily planned. But also a ton of tactical and administrative things.

I think part of me is afraid to ask because I think they're annoyed that I'm not getting more of the strategic things done, but it's because I'm doing stupid things like managing people's email signatures and chasing down our sister company to pay their invoices so I can get what I need from our printer.

I'm going to gather my data and my project list (as well as my courage) and see what I can do!

[livinitup]

They probably do need a college intern at that rate. Suggest it. You can even say you’ll supervise their projects and assignments. They are in a huge growth swing, you’re doing them a favor by being the right person with the right experience & knowledge to meet their new needs. Turn a negative into a positive to say that you are ready to take on the bigger strategic projects at your new rate.

You are a consultant. You have a lot of power here.

[mae0111]

livinitup, they've definitely mentioned finding a junior person to come in and take some tasks off my plate. Maybe I'll make that part of my proposal. I thought maybe I'd keep it separate, but if I position it as I'll manage that person (which they may not let me do since I'm not in the office every day) it may work out...

Good thoughts - thank you!