How much are you and your services worth? Is it more or less than in previous years?
Almost across the board, businesses are increasing their fees for services and the price of goods, as they continue to grapple with the cost-of-living crisis.
As we enter a new year, now is a great time to review your costs and think about how much you should charge for the expertise that you offer.
How you can demonstrate value and improve your income
There are several ways that you can determine the value of the personal services that you supply and use this to improve the amount that you are paid.
Scarcity – How few are people in your position? Is there a demand for your expertise? The reality is that the fees charged for certain services increase exponentially based on their scarcity.
At the moment, many employers are facing a recruitment nightmare, particularly in highly skilled industries.
This has been reflected by rapidly rising wages for some employees and fees for consultants and contractors.
If you are in such a high-demand industry or role, then your fees should reflect the scarcity of skills and services.
If you haven’t reviewed what you charge in the last year, whether you are in a contract or looking for new work, then now is the time to consider requesting a higher fee.
Ask yourself, could they find a replacement for the same fee? If the answer is no, then you are undercharging, and it may be time to address new and existing relationships with businesses.
Experience – Every year we get a little bit older and gain more experience. To those looking to engage your services, there is a big difference between a person with five years of experience and 10 years of experience.
If you are more experienced, you have faced a wider range of scenarios and by remaining employed shows that your expertise has been valued for longer.
While qualifications are important to many businesses, experience is just as key. It is important you play upon this aspect and the value that it gives to your services.
In many cases, it is likely to be an important way of justifying your worth to potential engagers.
Differentiators – No two people are the same, whether that is in their approach to work, availability, skills or qualifications, so focus on the things that make you stand out.
Sit down and think about what previous clients have said about you and use these as your main selling points.
If you know that you have a different work ethic or perhaps have knowledge that is in short supply and valuable to a particular client, sell this to them. Make them aware that they can’t afford to not work with you.
Be selective – If, having reviewed the points above, you think you have quite a good case for higher pay, it is worth seeking out contracts with a higher value that are, ideally, outside of the IR35 rules.
While we all have concerns about where the next contract may come from, if you have researched and identified the value that is inherent in your skills, experience and scarcity, you should be free to choose the type of work you commit yourself to.
Competition – Be clear with potential engagers of your services about the competition that they face from other businesses for your expertise. Make them understand the challenges that they may face in obtaining someone with the same knowledge and experience.
Highlight the scarcity of people in your position and make them understand why you are worth more than others.
Don’t sell yourself short. While there might be a temptation to help out struggling contacts or support businesses in need, ultimately you have a definable worth and shouldn’t be swayed otherwise.
Do your research, calculate the value of what you provide and deliver a competitive proposal, keeping in mind your own realistic goals for how much you want to earn and your flexibility for work.
If a business tells you they can get your services and expertise for less elsewhere, let them. In the current skills-driven economy, you can find work that meets your true worth.