Interim management is a perfect alternative for the classic recruitment and should be considered as the ideal way to solve any organisational issue in a changing environment.
In the actual market situation, companies rather choose not to recruit additional manpower and to postpone new projects for “better times to come”. However, this can result in a loss of market share, business opportunities… Interim management is the solution to overcome this.
The cost of an interim manager is often considered expensive when compared to an employee’s full cost, and thus to be avoided as a solution to the above, in the actual times of cost cutting and savings. Nevertheless, interim management has some strong arguments in favour.
As an interim manager is most of the time overqualified through experience, he brings a lot of added value and he generates faster results with a positive impact on the profit and loss of your company.
Even more, the interim manager must prove himself every day with the highest quality of work and development, and his wrking hours are not 9-to-5.
With his wide experience, independency and personal competences, the interim manager brings a high added value, makes your organisation change where necessary, and delivers efficient results at a short times notice. Also keep in mind his high flexibility and the easy way to calculate your budget (days x fee = ALL IN).
And, last but not least, calculating all costs, the below example for a mid-sized company shows that interim management is less expensive than you think:
|Example: In a salary compass on the internet an employee in the service sector, 25 years employed, function of manager, earns a salary of 7.500 € and following benefits:||Per year|
|Monthly salary: 7.500||90.000|
|Year end’s pay||7.500|
|Bonus (15% of years’ salary)||14.569|
|Car + fuel card||10.800|
|Cost proper to employer||2.400|
|Entry fee (3 months depreciated over 3 years)||7.500|
|Probability of firing: 50% after 5 years with a 5 months’ notice = social passive per year||5.960|
|Other costs (accident insurance, health service, salary administration, canteen, laptop, internet)||900|
|TOTAL ANNUAL EMPLOYMENT COST||199.350|
|number of working days(364 calendar days minus weekends, legal holidays, holidays, training and illness)||216|
|EMPLOYMENT COST PER DAY||923|
When we repeat the above calculation for several gross monthly salaries, following comparison table is obtained:
|Gross monthly salary||Daily employee cost||Daily interimManager fee|
|6.000||756||750 – 1.100|
|9.000||1.090||1.000 – 1.350|
(The “going rate” are the rates we found on the internet with interim providers)
Note that in case of long-term absence the daily employee cost will increase, whereas the daily interim manager fee is only to be paid when working for you.
It is often an argument not to choose for an interim manager because know-how and continuity must be secured.
Is it so secured by choosing an employee? He too can leave the company within a short notice. A mission that takes some years is not an exception anymore, and an interim manager is used to close his mission, i.e. he knows what it means to “document” and “to hand over”.