Get that Rate - How Much Should Temps/Contractors Charge?
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It's the free agents' $64,000 question: How much do I charge per hour to make a go of it as an independent professional? And the pundits are ready with a pat answer. Divide your full time salary by two, take off three zeros and that's your hourly rate. So if you make £30,000 as a wage slave, you need to earn £15 an hour to make it as an independent.
Consider the cost of loss of benefits
If you're like most employees, your company has provided you with a number of valuable benefits, especially insurance. If, as a free agent, you can't hitch a ride on your employed spouse's plan, it's crucial that you figure in the cost of buying these services. Your fiscal and physical health depend on them. And being in business for yourself, you may need professional insurance. Add these items to your master checklist:
- Health insurance
- Dental insurance
- Life insurance
- Disability insurance
- Professional/business liability insurance
- Retirement savings
Ensure you investigate the market and price yourself accordingly. It is essential you give the agency a minimum and maximum, leaving you room to negotiate.
Negotiate
Start high and have a bottom line, but don't price yourself out of the market. Depending on your background it is key to measure how much your skills are in demand. Find out how many other people they have interviewed, how long they have been looking to fill the position etc.. It's all part of the game. The agency will not be very pleased when you first put the proposition to him or her, but once the deal is done, all parties will be pretty contented.
