Interim Executives are expensive…“Compared to what?” Is my usual trite response.
It’s funny how people often focus on cost rather than value. If I told you I could save you £10 Million but it would cost you £1 Million to achieve it, would that be expensive or a great deal?
I can tell you one thing for certain, the interim’s I work with are not as expensive as certain junior management consultants who have half the experience (and cost twice as much!)
…But they get huge day rates! “Argh you’ve got me.” But really, how does this stack up against a permanent employee?
The IMA (Interim Management Association) have calculated:
“An executive on £100,000 is actually costing the business a lot more. Once you have added in bonuses, holiday pay, NI contributions, pension, health and company car benefits, the real cost is likely to be nearer to £175,000. These costs do not apply to interim managers.”
Based on rough industry calculations, a £100k per annum equivalent interim might charge in the region of £600-700 per day, so even if we paid above that at £750 per day for 232 days (260 working days, minus bank hols and holidays) in a year we are talking an equivalent number £174k.
Not bad for a flexible resource that can be turned on and off as needed… and that’s before I start boring you again with talk of cost vs value.
Interested to find out more? You can email me on James@refind.co.uk
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