Daily Rates for Interims: Standards or a Floating Decimal Point?

Posted on October 16, 2007. Filed under: Executive staffing, interim management, marketing recruitment |

I’m frequently asked what my day rate is. I always give a range, because the rate I charge depends on many factors that I take into consideration to strike the right balance between value delivered and effort extended.

For the CEO who is momentarily frustrated by the non-existence of a “rack rate” for interims I simply point to the fact that salaries for CEOs are all over the map, too. Sure, there are published averages and ranges by industry and company size, but those ranges can be wide; same too with IMs.

For thought leadership and best practices one only has to look east from this star spangled land to our friends in the U.K. where interim managers are an accepted and widely used resource. 

A June survey by a leading U.K. Interim Management firm, Russam GMS, gives us a few data points to consider here in the Colonies. The electronic survey was distributed between June 2007 and July 2007 to nearly 8000 interim managers. It was completed by 670, or 8.4%.

Among survey respondents the average daily rate for a full-time engagement was £568 ($1,153) up 2.3% from a year ago. The average daily rate for a part time engagement was £618 ($1,255) up 9%.  It’s important to note that the survey did not break down the data by level of position (Director, VP, C, etc.). The survey was heavily populated with respondents holding IM assignments in government and healthcare, two sectors not know for lucrative pay scales.

Dennis Russell in his excellent book, Interim Management, first published in 1998, stated that a good rule of thumb for IM compensation is 0.75% to 1.3% of the compensation for a permanent hire. According to Russell’s formula an executive in the role of an interim VP position with a $200K comp plan would charge in the area of $1,500 – $2,000 a day (0.75% – 1%), and an IM filling a director-level position with an equivalent $125k comp package would charge $1,250 to $1,625 per day (1% – 1.3%).

These rates apply to interim assignments, say, engagements of 3 to 9 months. Anything less than that is more of a consulting project than an interim assignment and the rates you can expect to see will be as much as 50% higher. Volume pricing applies to IMs, too.

The best thing to remember is this, it all depends.

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

2 Responses to “Daily Rates for Interims: Standards or a Floating Decimal Point?”

RSS Feed for One Riot – One Ranger Comments RSS Feed

very interesting, but I don’t agree with you
Idetrorce

Idetrorce, can you provide more information on your different point of view?


Where's The Comment Form?

    About

    A Discussion of Interim Management for Marketing and Sales Functions by Charles Besondy

    RSS

    Subscribe Via RSS

    • Subscribe with Bloglines
    • Add your feed to Newsburst from CNET News.com
    • Subscribe in Google Reader
    • Add to My Yahoo!
    • Subscribe in NewsGator Online
    • The latest comments to all posts in RSS

    Meta

  • About this Blog

    This blog is devoted to the topic of interim management for marketing functions within large and small corporations. Interim management as a staffing concept is well-understood and widely utilized in Europe. However, here in the colonies we are just beginning to open our eyes to the business benefits of being flexible and nimble when it comes to staffing senior-level marketers. (c) 2006 - 2012 Charles Besondy
  • Categories

  • Archives

  • October 2007
    M T W T F S S
    « Sep   Dec »
    1234567
    891011121314
    15161718192021
    22232425262728
    293031  

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: