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Today, I encountered a disheartening situation involving four of my friends who received contract job offers as “Data Analysts” from leading banks and insurance companies. Shockingly, the offered hourly rates were $19, $20, $20 and $21. These contracts are from Canada’s Top 10 prominent agencies. These wages are lower than what many earn in survival jobs, such as those in restaurants or warehouses. My intuition suggests that big companies like banks and insurance companies themselves likely offer better pay. Could it be that the agencies are taking a higher margin, or are the big companies genuinely offering such low rates? I would appreciate your insights on this matter. Let's brainstorm.
Arvind Natraj
3mo
Rambabu Vasupilli This is complete lowballing. Being in IT and having done multiple years of contract work, I and others have encountered this many times. An experienced candidate (3 yrs or more), being offered roles where the pay is around these ranges you presented. As a rule of thumb, that's why I always negotiate while speaking with recruiters. If I have so many years down, I'm going by that with justifying and quantifying my value. If the pay isn't in alignment, it's best to walk; especially if other factors aren't in strong alignment either. Go somewhere where your valued from the salary standpoint and other things too.
Naeem Abbas
3mo
I think their job offer is according to the experience of the applicant.Rate is assigned according to the expertise level of the applicant .Yes ,recession is also one of the reasons
HAMMAD SIDDIQUI
3mo
Why is that situation? The root cause Rambabu Vasupilli
Most of the agencies have an MSA in place with the clients and cannot have higher margins. Gone are those days. It also depends on the level of experience and skills the client is looking for to which they allocate budgets, however the above rates seem to be low. I'm seeing clients especially this year do offer very low rates due to the current inflation and market conditions. This year has been very rough in terms of opportunities.
Naresh Erothi
3mo
There is a 100% possibility the agencies keeping a higher margin. I don’t think the top companies offer such lower rates.
The issue is, if anyone points out the main reasons then the particular individual is scared that he might end up losing the existing job. Its like in everyway the information is controlled and cannot be expressed so as to avoid jeopardizing one's career or much more.
Ayesha Siddiqa
3mo
It's really disappointing when the same role in the US is paid so much higher.
"Strategic Finance and Banking Professional | Expert Credit Analyst | Operations Specialist | AML Compliance | Administrative Leadership"
3moIt’s disheartening to see skilled positions like Data Analysts being offered such low hourly rates, especially from prominent agencies representing leading banks and insurance companies in Canada. The rates your friends were offered ($19, $20, $20, and $21 per hour) are indeed concerning, considering these are highly regarded institutions. In the current market context, it’s a combination of both factors: agencies often take substantial margins, but increasingly, companies themselves are offering lower wages. It’s a 50-50 scenario where both parties contribute to the lower pay rates. However, securing a position with top companies, even at a lower wage, can be a strategic move. The key is to gain valuable experience, build a strong resume, and then leverage that experience to move to a higher-paying firm. This approach can gradually increase your earning potential. These are my personal insights, and I hope they help. Let's continue to brainstorm and explore other potential strategies to navigate this challenging job market.