What costs
should I expect?
Not cheap, but worth every penny!
The costs for interim management are calculated in daily rates. These range from 1,000-2,000 euros and are determined by the project requirements, the current market situation and the management level of the candidate. A rule of thumb is often used here, which states that the daily rate of an interim manager is approx. 1% of the annual salary in a comparable permanent position.
Self-employed managers
At first glance, interim management costs seem expensive, but if you take a closer look, this assumption is quickly revised. This is because interim management and permanent employment cannot be directly compared.
Interim managers are self-employed executives and experts who bear their full entrepreneurial risk themselves. Since their workload is not guaranteed for the entire year, they do not have a secure annual income and must ensure financially that they can bridge periods without a mandate.
Calculable costs for the client
Since the costs of the interim management mandate are calculated on the basis of daily rates, the costs for the client are absolutely calculable from the outset. However, companies should also include the additional costs in the calculation, such as travel and accommodation costs, which are incurred during the project depending on the location and/or travel activities.
The difference to permanent employment
The interim manager is only paid for his working hours, i.e. he has no holiday entitlement and is also not paid in the event of illness. If you compare the costs with permanent employment, the following expenses are also omitted for the commissioning company:
- All social benefits
- Christmas and holiday bonuses
- Bonuses and premiums
- Company car
- Further training measures, etc.
This can easily amount to between 40 and 50 per cent of a fixed salary, which puts the costs significantly into perspective.
The service of the provider
The daily rates offered to you by a provider usually include a commission of between 25 and 35 percent of the agreed daily rate. For this, the provider makes an advance payment in which, unlike the headhunter, he charges virtually no fees before the contract is concluded. Until then, the consultancy service is free of charge for you and includes:
- Advice on whether interim is the right solution and, if so, how to proceed
- Support in defining the project and sharpening the profile
- Presentation of suitable written profiles, usually within 48 hours, with concrete recommendations by the supervising consultant
- Organisation of personal or video-based interviews with the candidates
- Attendance at the interviews and final recommendation
- Preparation of the contracts
All-round support
But even after the contract has been signed and the interim manager has started, the support provided by the provider continues. The consultants look after you and the interim manager throughout the entire project, support onboarding, monitor progress and ensure an orderly conclusion.
„Today, flexible recruitment is crucial if organisations want to remain competitive. Highly qualified interim managers offer exactly this support. Good advice from a provider, such as Management Angels, combined with a manager pool that includes highly qualified specialists and managers, make interim management a successful model for me!”
Michael Harms
Head of HR and Legal, Beiersdorf AG
