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Independent consultant contract rates up despite recession

Published on Mar 24, 2009 | | Contract Rate Checker

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Despite the economic slowdown, results from Skillfair show that self-employed consultants are actually earning more than they did last year.

The annual survey results from online consultants' network, Skillfair.co.uk, show a 7.5% increase in average independant consultant daily rates from £560 to £602.

The 2009 survey was sent to over 9000 consultants, interims, freelancers and contractors and attracted over 500 responses. As well as a breakdown by skill area, the site asked consultants to identify the geographical area of the majority of their clients and also to break down their work between private sector, public sector and 3rd sector.

Most expect to profit during recession

Despite the economic crisis, 78% of the consultants surveyed expect to do better than or as well as last year, as many businesses choose independent consultants over the employment of permanent staff (see our recent article here). 60% of respondents expect to grow their business this year due to this trend.

One feature of the site's membership that may explain the rise, and the general positive outlook taken by the respondents, is that the majority of them (67%) get most of their work directly from clients rather than relying on agencies.

Consultants working directly for clients are generally able to charge slightly higher rates and building a strong relationship with their customers allows them to be more confident about future work and the value that they provide.

Consultancy not a "quick fix"

"It's good news for the industry that fee rates are up this year, but it's important to note that consultancy shouldn't be viewed as a quick fix in tight times" said Gill Hunt, Skillfair's managing director.

"Almost 40% of our members have been self-employed for over ten years and have developed trusted relationships with clients who understand the value of hiring skilled consultants. Employing consultants as part of a business strategy is a trend that will outlast the recession."