How-To: Set Your Contract Pay Rate

How-To: Set Your Contract Pay Rate

Contracting has been a trend nowadays for SAP professional, especially in Malaysia. Those who want a variety of environments and ample experience in various industries often opt for contracting as it offers them just that. The versatility and room for growth it offers are attracting more and more people to leave the permanent position. But most times, they are too afraid to do so. Why? Well, the biggest reason is; they don’t know how to price themselves.

Worry not, we are here to help you with that.

1. Know The Market

That’s right people, there’s no way around this. To know your worth, you have to know your profession’s worth as a whole first, just to have a basis you can work on. We found payscale.com especially helpful for this purpose.

For example, the median pay for entry-level SAP consultants is RM 69,189/year and that is translated into RM 44.00/hour. We’ll make it easier for you; that’s RM 352.00/day. You can use that figure to start calculating your absolute minimum.

Know your worth by studying what the client is willing to pay, or how much they usually pay for similar positions. It’ll also help if you research how rare and valuable your skills are. This will be especially helpful when negotiating your pay rate.

Of course, there are many other variables to consider, which brings us to the next point.

2. Consider Your Situation

The contract also might require you to travel often, or far, or even relocate. Factor in these kinds of circumstances in your pay rate.

Some factors that can raise your pay rate include:

  • You have valuable or rare skills

  • Your amount of experience

  • The contract’s length is short; thus it’s harder to get a candidate to fill in.

  • You are required to travel or relocate. The farther away you are from home, the higher you can raise your pay rate.

And these are the factors that can lower your pay rate:

  • Benefits have been included in the contract

  • You have no or little experience in contracting roles

  • The contract’s length is long. This translates into job security and thus justifies the lower pay

  • You have been unemployed for a long time

Doing this on your own might be overwhelming, we understand. That’s why you have to do this next thing; 

3. Talk with your agency

That’s right. It’s very hard to survive in the contracting world without a proper agency representing you. A good agency will always fight for you and will do their best to protect your interest.

Discuss openly with the agency you choose to represent you. Most often than not, they have a good idea of how much a person of your calibre is usually paid. And it’ll be more easier if the agency has a fixed rate and openly tells you what they’ll get out of your placement. Most agencies don’t reveal their numbers, but here at Aplikasi, we do.

And most of the time, the client already has a ballpark figure for you and the agency to work with. This will make it so much easier for both of you. But be careful not to go below your absolute minimum. In the long run, it can hurt your contracting career.

If you want to know about the numbers, and how we operate here, we’re just one click away.

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