You Become Your Rate

Inspiration for this came from one of my co-workers. This is good for a couple of reasons. The first is that I'm not alone in what I'm thinking. (Scary). The second is that someone actually reads my blog.

Nido Qubein, the President of High Point University, said something to the effect that if you create an environment of excellence, people will live up to the standards of that environment. (That's not an exact quote. I'm terrible at retrieving information when I need it). But you get the gist.

At a big firm, you almost begin to believe that you are worth the rate that you bill clients. So when you move to a smaller organization and your bill rate is cut by 3/4, it's almost impossible not to take that personally. 

There's a cost associated with the resources and intellectual property, not to mention intellectual horsepower, that big firms can give you. In addition, anyone that's taken any type of behavioral economics course understands that people associate premium products with premium prices. It's like saying, "Hey! That stick over there is priced at $1,000!" People will want to believe that there is something that makes the stick worth that much even though it's just a stick. 

My co-worker said, "You become your rate." That's very insightful. Because it's true.

People rise to standards of excellence if the environment demands it.

People work to the rate per hour that they are billed at based on their perception of that rate. 

Perception works in one of two ways. If you come from Big 4, you've been devalued. Therefore, you may not perform to your potential. (And more than likely you are probably overqualified and have been put in a role that you did a decade ago). If you come from a boutique or small company and you are billing to the same rate as an ex-Big Firm person, you're bound to think that you are the shizzle. But in reality your performance would be considered mediocre at any firm that can spell professional services. 

My advice is to not let your bill rate define you. But you sure as hell need to have some definition of self-worth.