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Costs interim management
If it´s free, it can´t be any good
The cost of interim management varies based on a number of factors, including the industry, the size of the company, the experience of the interim manager, and the task the interim manager is taking on.
Costs
If it´s free, it can´t be any good
The cost of interim management varies based on a number of factors, including the industry, the size of the company, the experience of the interim manager, and the type of assignment the interim manager is taking on.
What are the costs for an interim manager?
As a rule, there are three types of costs incurred when using interim managers:
Daily rates (+ expenses)
Daily rates are the fees an interim manager charges for each day they work for the company. These rates can range from a thousand euros to several thousand euros per day, depending on the experience and qualifications of the interim manager.
Expenses include the cost of accommodation and travel expenses, but generally do not include the cost of meals. There are basically two types of daily rates – expenses are charged separately according to time spent or all-in, i.e. expenses are already included in the daily rate.
Profit-sharing
Profit sharing is based on the results achieved by an interim manager. This can mean, for example, that the interim manager receives a percentage share of the savings achieved for the company. In most cases, a combination of daily rates and profit-sharing (in favor of low daily rates) is applied.
Provider costs
Provider Cost is the fee charged by the Interim Provider for each day the Interim Provider works for the Company. These rates are charged to the client in addition to the daily rates and can usually amount to 20 – 30 percent or more of the daily rate, i.e. several hundred euros.
When you hire MORE-Consulting, you do not incur these costs because you work directly with us.
An investment that pays off
At first glance, daily rates for interim managers seem very high compared to the costs incurred by the company when hiring a permanent employee. However, interim managers cannot be compared with permanent employees. These are the reasons:
Flexible and fast deployment
A key advantage of interim managers – in contrast to permanent employment or temporary staffing – is their availability at short notice. Managers and project specialists can thus bridge personnel bottlenecks or take on optimization tasks in a timely manner. As an experienced interim manager, you only need a short training period and you know how to accompany change processes.
The interim manager leaves the company after completion of the project or task without having to observe notice periods or pay severance.
Objectivity
Clear words, objective evaluation. Interim managers assess the situation in your company in an implementation-oriented manner and can thus resolve problems in a targeted manner. They do not have to “play politics” and are unbiased by the company’s past performance.
No social security, no extras
In the case of permanent employment, in addition to salaries, employers also incur costs for social benefits amounting to around 80 percent (health insurance, pension insurance, vacation and public holidays). Interim managers also do not incur additional costs such as bonuses or company cars.