Contracts in COVID - How to negotiate day rates in this new climate

Brianna Paton • August 28, 2020

It’s been six months of COVID19 and among other impacts, the preference of freelance over permanent within advertising and marketing roles has left some candidates unsure of how to negotiate a day rate when looking at contract opportunities.


As companies deal with hiring freezes, unpredictable pipelines and the need for flexible, agile marketing teams, the preference towards freelance hires is understandable, but just how flexible should YOU be when looking at new roles during this (I have to say it) unprecedented time.


First time freelancers


Firstly, and very importantly, will you be invoicing through an ABN or will you be on the company payroll PAYG?


If you are invoicing through your ABN, do some research first. Confirm if your current ABN means you are eligible and if so, how much tax you will need to budget for plus any further information about this avenue. Click here. Also, ensure you also have all the necessary insurances in place.


If you are looking to move onto a day-rate on the company’s payroll via PAYG and have previously worked in full-time roles on an annual salary,

there are a few things to consider.


In this climate, your negotiations will ultimately come down to the budget of the agency or client, so it’s best to be aware of what this is upfront to see if the figure is in-line with your financial needs. This will save disappointment down the track and also your valuable time with interviews if the amount ends up not being feasible.


Once you have established that the figure matches your life budget, it’s time to work out what your experience equates to as a day rate. Your helpful consultants at iknowho have put together a quick cheat sheet to help you see your market value based on your years of relevant experience. See here for a full overview on day rates.


As you can see from our cheat sheet, there are still some variations on the market rate at each level of seniority. Other things to consider are:


Length of contract; Typically, you can negotiate an additional 10% on the day rate for short contracts of 1-2 months, due to the high level of flexibility required on your end. 


Speciality of skills; If the skills you are required to bring for the role are of niche speciality or are in high demand you should have a little more wiggle room with negotiating day rates as in theory there is a supply demand issue and you should be in demand.


Superannuation; Always remember to ask if the day rate includes 9.5% superannuation or if this will be an added payment. This will impact what the net value of the rate is to you.


A final word in closing.


If you do accept a lower rate than you have earnt previously, don’t feel you are getting a raw deal or selling yourself short.


In this climate, see it as an opportunity to prove yourself within an initial contract. I recommend putting in writing that “based on your performance during the initial contract you would like any permanent salary or additional contract extensions to be re-negotiated”


This is a fantastic way to get yourself into a new role. Slide past those hiring freezes and give them a really good case to push through your permanent salary expectations to HR once you have already made yourself indispensable to the company.


Covid19 is changing the way we work and it’s changing the way we hire, be open-minded and see the opportunities presented and the flexibility available in this new 2020 workforce.


For more information or to speak to an iknowho consultant about the current market visit www.iknowho.com.au 

By Kristina Gerdov April 3, 2025
Starting a new role is so exciting but can sometimes feel like a whirlwind—there’s so much to take in. That’s why we’ve broken it down into a simple 30-60-90 day plan—to help you settle in, make an impact early, get aligned on your KPIs, and feel a sense of achievement from day one.
By Riza Karis March 26, 2025
I recently had the pleasure of attending the B&T 30 Under 30 awards and had the chance to meet some incredibly talented rising stars in the industry. One standout was Aoife Lehane, a candidate we’ve had the privilege of working with, who was nominated and shortlisted in the Account Management category. Honestly, I wasn’t surprised at all—anyone who meets Aoife can immediately see how ambitious, creatively driven, and sharp she is. Here’s a look at her B&T 30 Under 30 experience and a glimpse into her impressive career: From starting your career in Dublin, to moving to Sydney and landing a fantastic role through iknowho at one of Australia’s top agencies, you’ve had an amazing career to date. Can you tell us a little more about your background? I have learned from some extremely talented people throughout my career to date and count myself very lucky to have had been afforded some amazing opportunities. I started my career at a boutique indie agency in Ireland where I got invaluable hands-on experience running my own accounts and pitching for new business quite early on. From here, I made the move to Droga5 in Dublin working on some of the agency’s largest clients. Whilst at Droga5, I went through a career crossroads moment where I was debating becoming a planner and actually spent 6 months working in the strategy department which I absolutely loved. This stint in strategy taught me invaluable skills that I use in my role everyday. Ultimately, I decided to stay in account management (if you hadn’t guessed!) as I couldn’t shake the curiosity of seeing the whole process come to life and the ability to really influence the work in all phases, beyond just what I touched in strat. It sounds cliché but I’m also a real people person and I thrive off building relationships. In my opinion, account management are the real beating heart of an agency, and I thrive in that role and the exposure it gives you to all areas of the business. When I decided that I was moving to Sydney I reached out to Riza at iknowho whilst still in Ireland. Not knowing the Australian market was extremely daunting but her knowledge and experience put me completely at ease. She really understood me, my ambitions and the type of agency I wanted to work in for the next chapter in my career and I couldn’t be happier with how it worked out. The calibre of talent in the mix was extremely high this year. How did it feel to be a finalist at this years’ B&T 30 under 30? And what inspired you to participate? I feel so incredibly grateful to have been up there with some amazing individuals who have achieved so much in their careers already. Personally, it was such a lovely moment to be recognised amongst such a talented group of people who have come from different backgrounds and corners of the globe. Having diversity in career paths and experience is so important for our industry to bring fresh perspectives and thinking – it only benefits the work, the people who make it and the people who see it. It was actually this time last year, seeing the finalists and the stories from past winners that inspired me to enter - I turn 30 this year so I figured if not now, when! What did you learn throughout the process of applying and what advice would you give to others looking to participate next year? Also, how did your agency help to support you in the process? I really enjoyed the process of applying and the moment of reflection it gave me on my career to date. So often I’m looking ahead to the next thing and don’t take the time to reflect on what I have achieved already. As someone who can be very hard on themselves, it was a really eye-opening and rewarding process to take part in. The 3 pieces of advice I would give to others looking to participate next year would be: 1: Think about the narrative you want to land from the start and how you weave that narrative through your response to the questions and constantly re-enforcing your point. 2: For me, it helped to get everything down on paper and then treat it as a bit of a creative review to condense and tighten (my first draft was 9 minutes long!) 3: Lean on those around you for their advice and point of view, you can get stuck in your own head when it comes to the submission, so it’s good to have those around you to offer that fresh perspective. I work with some very talented people who were extremely generous with their time not only offering me their advice and feedback but also their videography and editing skills to give my submission that final polish – it takes a village! There is no doubt that being a finalist helps elevate your profile, what other benefits do you see from being shortlisted and are there any other awards in your sights for the future? Not being from here it can be a little bit harder to “break into the industry” and make a name for yourself, as an expat I have found it hugely beneficial in that respect. Even this opportunity from the team at iknowho to do this profile piece has been really valuable and a great privilege that I don’t take for granted. In terms of personal awards, there’s nothing specific that I have my sights set on in the immediate, but I am open to whatever opportunities come my way. Forbes 30U30 would be a good one but I would want to get busy! What’s next for you, where do you see yourself in five years? Anyone who knows me has heard me say I want to be on that stage in Cannes.. so hopefully that will have happened. With the world we’re living in right now and the constant conversation around the value of creativity (which I believe is not only monetary, but also the value it provides to society) I’m driven by the opportunity to create something that people really connect with and makes a lasting impression in the world.. whether that’s as simple as just making people smile or changing societal behaviour for good - the pursuit of that is what drives me. I’m energised by working with likeminded people who share my ambition but not always a similar point of view. I love the process of sharing those different points of views and different ways of thinking and what brings to fruition. That to me is what makes the industry we work in so interesting and one I love being a part of. Ultimately, I would love to be in a leadership role in an agency where I have the ability to make a real impact and influence the direction for the future of the industry. -- Thank you so much, Aoife, for sharing your journey, insights, and advice. Your passion and drive are truly inspiring, and we have no doubt you’ll continue to make waves in the industry. We can’t wait to see what’s next for you! If you're looking for your next role within the junior-mid levels across agency or the perfect candidate to add to your team get in touch with Riza today!
By Kristina Gerdov February 24, 2025
Struggling to choose the best candidate? Our expert hiring tips help hiring managers make confident, strategic decisions. Read more now
more posts