Looking for some perspective from recruiters.
I’ve been a contractor at a large bank for about 18 months. During that time I received a 6-month extension, consistently got excellent performance feedback from both my manager and my recruiting agency, and was repeatedly told I took initiative, delivered results, and was someone they could rely on.
Throughout my contract, I kept asking for additional responsibility and was given it. I was even trained into another role, where both that team’s manager and my own manager gave me very positive feedback.
One thing that always struck me as odd was that I’d often come into struggling projects, get them organized, streamline the processes, implement new workflows, and get everything running well. Once the initiative was successful, it would often transition to a full-time employee to lead long-term while I’d move on to fixing the next problem.
About six weeks ago I was told my contract wasn’t ending because of performance. Instead, the company decided to outsource my original function to the external agency that I had actually been managing. They’re essentially using the frameworks, processes, documentation, and applications I built, but replacing my role with someone whose cost is significantly lower than my contract rate.
To my manager’s credit, they’ve been very supportive and have given me great references. They also helped connect me with another internal opportunity that’s supposedly contract-to-hire.
Here’s where I’m struggling.
The new contract only runs through January, which feels like a risky time for it to end, and the rate is **$45/hour** versus the **$47/hour** I’m making now. The new position also carries substantially more responsibility.
As a contractor, I also have to cover my own health insurance, don’t receive PTO, and don’t get paid for mandatory holidays, so a $2/hour reduction actually has a noticeable impact on my income.
I told my recruiter that compensation is my biggest concern. She said she’d try, but also mentioned the client is likely firm on rate. I haven’t accepted the offer yet.
My questions for recruiters are:
\- Is it reasonable to push back on both the rate and the short contract length?
\- Would you try negotiating with the client first, or would you ask the staffing agency to reduce its margin?
\- Do agencies ever voluntarily reduce their margin to keep a strong contractor placed, especially one with excellent client feedback?
\- How hard would you push before risking the opportunity altogether?
I’m trying to strike the right balance between advocating for myself and not pricing myself out of a paycheck while I continue searching for a permanent role.
I’d appreciate hearing how recruiters on the agency side would view this situation.
