Negotiating what you are worth

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Negotiating what you are worth Getting better rates and conditions

description

I short guide for freelance workers in working in the media provided by BECTU the Trade Union for the entertainment industries

Transcript of Negotiating what you are worth

Page 1: Negotiating what you are worth

Negotiating what you are worth

Getting better rates and conditions

Page 2: Negotiating what you are worth

What do you need to know to negotiate?

What does the job entail?

What does the fee they are offering include or exclude?

How much will it cost you to take the work?

What is the lowest fee you are willing to work for?

What is everyone else getting paid for the same kind of job?

Who can you negotiate with?

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What do you do now?

How did you get offered the job?

What do you ask for at the moment?

Do you enter into any negotiating at all?

Have you calculated how much it costs you actually to do the work?

Do you know what others get paid for the same job?

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What do you think you are worth?

How do you work out your rate?

Do you have an hourly rate/day rate/an all in price?

Does it include travel/food/kit/holiday pay?

If you take all things into consideration what is the hourly rate you are left with?

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Calculating your rate

Example: You are offered £300 to do a 10 hour day.

You are expected to supply your own kit

Your published ratecard tells you that you price the

required kit at £70 a day

You are therefore being asked to work for

£230.

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Factoring in the holiday rate

Your employer is legally obliged to make provision for

you to take a holiday.

You should tell your employer that this provision can

be met with a 12.1%-of-rate payment

12.1% of £230 = (£27.83 holiday pay).

You are, therefore, being paid £202.17 for a ten hour

day.

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Overtime

A ten hour day means you are working two hours

overtime.

Overtime should be paid at time-and-a-half

You can, therefore, work out your hourly rate by

dividing £202.17 by 11 (8x1 + 2x1.5)

Your rate is £18.38 an hour!

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How can we improve your deal?

You need to prepare before you start a negotiation

You need to have your facts to prove your argument

You need to listen

Keep calm and professional

Build up a good relationship with your employer

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Recap what do you need to know to negotiate?

What does the job entail?

What does the fee they are offering include or exclude?

How much will it cost you to take the work?

What is the lowest fee you are willing to work for?

What is everyone else getting paid for the same kind of job?

Who can you negotiate with?

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Confirm the hours that you are expected to

work These expected hours are they all paid?

Do your hours comply with the Working Time Regulations?

You want travel time and travel costs

Do they expect you to opt out?

You need a lunch break

If you are asked to work over the regulations you need to be compensated

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4. Know the going rate - and ask for it.

https://www.bectu.org.uk/advice-resources/rates

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Charge for your kit - always

Often, employers just assume that you will bring your kit with you and provide it to them at no charge.

How much would cost to hire seperately?

What are the benefits of you using your kit?

How do you negotiate this?

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Holidays

Are you being paid a basic rate or a rolled up rate?

Employers usually quote “rolled up” rates.

They should be adding 12.1% to the rate that they

pay you to cover your holiday entitlement.

Quote it separately on quotes and invoices

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Cancellation rates In every industry, Freelancers expect to charge different rates

depending upon the cancellation notice period.

If a employer expects to be able to cancel at very short notice, they can expect to pay a higher rate or a cancellation fee.

Ensure that employers tell you 'this is a confirmed booking' as opposed to a 'pencilled booking'.

Are employers working on the basis that they would take legal action against you if you failed to fulfil a 'confirmed' booking?

This can form part of your negotiation with employers.

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Get paid

Make sure that you are clear what your payment terms are.

If they don't pay within the agreed timescale, you will know you have a late payment problem.

BECTU can help you with this.

The threat of going on the Ask First list often results in a quick payment.

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Haggling tips

Odd numbers are your friend.

Make your position clear: “I charge £x an hour. Overtime is

time-and-a-half, I have a separate ratecard for my kit and

you need to be clear with me if holiday pay is rolled in or

not.”

Every April, check out what RPI figures are – increase

your hourly rate by RPI (e.g currently 2.5%)

When asked to cut rates, chose how you go down a notch

- % is often better.

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Company status/insurance/tax

Employers sometimes try to get you to set up a limited company should you?

As a sole-trader, you have some employment rights (working time rules, health and safety protection) that are not available to someone who is being hired as a Limited Company.

They may also ask you to provide a Public Liability Certificate. These often cost £100s - but BECTU members only pay £21 a year

BECTU produces the Freelance Tax Guide.

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Get a good standard letter of engagement

This is something that you send through to employers to confirm what you have agreed with them. It should provide them with important information, such as.... Your contact details and (if relevant) company details, bank

details for payment, etc Your hours Your rates (with additions for holidays, kit-rental, overtime etc

where you can get these agreed) Your payment terms - how long after the invoice arrives do you

expect to be paid? Cancellation terms The 'intellectual property' agreement - i.e. the copyright terms

you are working to.

You can often find a suitable draft letter of engagement on the BECTU website.

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... because you’re worth it!

All of these suggestions are dependent upon a good

negotiating relationship between yourself and the employer

concerned.

The film and TV industry has never been busier in the UK

than it is now. In the past, when work is scarce, employers

have been able to threaten to go elsewhere to get the job

done.

There is no substitute for building up a good reputation and

being able to communicate the value of the work that you

do.

Once an employer has established that they want you to do

the work, the following tips may help you to nudge your pay

& conditions up to something that is more acceptable.

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New entrants

you need to be clear about the actual hours that you

work.

The odd freebie here and there adds up

It has a knock-on effect that damages most levels.

You have to complete the job to a very high standard.

Their business model is 'get people to work for free.'

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Not paying workers is illegal

Paying less than the NMW is illegal

BECTU sponsors InternAware

Tell BECTU if anyone ever asks you to work for less than the National Minimum Wage