More and more businesses are weighing up the cost and return on investment of the interim management resource. To companies that are thinking about hiring an interim manager for the first time, the cost seems disproportionate to the level of role they would ordinarily recruit on a permanent basis.
However, there are two fundamental flaws to this thought process:
First, interim managers are agents of change, they should not be brought into an organisation to ‘fill a gap’ or ‘plug a hole’.
Primarily, interim managers are used for:
• Managing recoveries and turnarounds
• Improving performance
• Driving mergers and acquisitions
• Bringing specific experience and skills to projects
• Providing additional expertise in times of growth
• Driving resizing exercises in a professional, compassionate way
In other words they add value to an organisation at a time of crisis, decline or growth.
Second, there is a misconception that interim managers cost more than permanent employees. An interim manager is not more expensive than hiring full time or temporary employees. When you take all recruitment and employment costs into account, such as National Insurance, holiday pay, sick pay, car allowance, pension contribution etc, you will appreciate how efficient interim management costs can be.
You pay your employees for turning up for work whereas interim managers are paid against set objectives and delivery. You must also consider the cost if you make the wrong choice of full time employee and have to go through a lengthy, disruptive and expensive exit process.
Interim Managers are independent businesses. They are highly experienced executives and senior managers who form part of your management team but who are not employees of your organisation as they operate through limited companies and are independent businesses.
They are paid a “day rate” and only for the days they are working on assignment. They are not paid when on holiday or if sick. There are no additional costs to pay such as: Employers NI, PAYE, pension, car, holidays, sickness, health insurance, severance, share options, bonuses, maternity or paternity leave, etc.
Interim managers pay all these costs themselves out of their interim day rate. They are normally engaged for a period of months but can also be part-time or on a long-term basis. When the assignment or project finishes there is nothing more to pay and no employment
contract to unwind or any redundancy payment as they are not employees.
Ellis Fox has a reputation for providing a quality service, high level customer care coupled with the ability to source permanent and interim candidates of the highest calibre right across the Utilities, Infrastructure and Construction sectors. Please call today on 020 7183 0255 or schedule a telephone consultation by clicking on this link: http://www.ellisfox.co.uk/Appointments