It seems that umbrella contractors working in the IT sector have decided to accept lower pay rates from Clydesdale Bank in a move that has left some experts shocked. It is estimated that these freelance temporary workers have agreed to a 10% reduction in the amount of money they are paid, although a few financial analysts have predicted it could be as much as 15%.
Unfortunately, this is a move that many people saw coming on the horizon, with a few pundits saying it is necessary in order for the freelancers to keep their jobs and hold on to valuable contracts. While not everybody is happy about the drop in pay, and let’s face it, who would be…there is an air of acceptance about the whole situation as they realise that daily rates with the bank are down as much as 15%, with some predictions putting it almost at 20%.
Clydesdale Bank are a major employer of umbrella contractors, and many of their brands are well known throughout the UK, including Yorkshire Bank which is popular among consumers, and has been for many years. However, when you consider the way in which this has been handled, with many freelancers refused contract extensions if they didn’t accept the new terms and pay rates, then it’s easy to see why their image may take a bit of a hit over the coming months.
It is always difficult when you expect people to do the same work for less money, and this leaves some of the IT professionals considering their options about what they might want to do in the future. Perhaps a career change might be on the cards for a percentage of those workers affected? At the end of the day who could blame them, especially if they can find higher pay elsewhere in a different industry.
Ultimately though, it seems that many of the umbrella contractors are happy to move forward and continue offering their services to Clydesdale Bank. In particular, one contractor who wished to remain nameless commented that while the lower rates were not ideal, the rates are still pretty decent…which just goes to show that even when a company offers contractors less pay, there are many who stick around and continue to offer their services.
IT experts have warned the bank about the quality of freelance professionals it will be able to attract in the future though, especially if they decide to drop the pay rates even further. This particular field is very competitive, and there are sure to be other companies out there hoping to lure the most qualified contractors with offers of higher pay and more bonuses. This could lead to Clydesdale Bank and other banks who follow the same path into a situation where the quality of work is not as high, which in the end leads to a reduction in the service they offer to customers.
Only time will tell if this affects the bank and its profits in the future. One thing I do know though, is that if they drop the pay rates any further then umbrella IT contractors should definitely start looking elsewhere.