Why interims are more cost-effective than you think
A day rate covers everything an employer normally provides. Here's how it really compares with a permanent hire.
When businesses first look at interim day rates, the numbers can seem high compared with a permanent salary. That comparison misses the full picture.
What a day rate actually covers
Interim executives don't receive benefits, so everything a company normally provides comes out of the day rate:
- Professional indemnity insurance for board-level decisions and commercial risk
- Pension contributions
- Private medical insurance
- Accountancy and legal fees
- Professional development and training
- Software and technology
Interims also receive no paid leave, no sick pay and no notice period. On paper, an interim working 200 days a year looks more expensive than a permanent executive. After these costs and tax, actual take-home is close to what a permanent employee receives. The day rate isn't profit.
What a permanent CMO really costs
Add employer National Insurance, pension contributions, benefits, bonus, recruitment fees (typically 20–30% of salary) and the cost of a poor hire. Much of that is spent before the new hire has delivered anything of substance, during a three to six-month ramp-up while they learn the business.
A good interim is productive from week one and doesn't need a long-term commitment. We move on when the assignment is complete: no redundancy costs, no difficult conversations, no paying someone through their notice period.
What you're buying
Immediate expertise from someone who has done this before in businesses like yours, can diagnose problems in weeks rather than months, and is comfortable making difficult decisions quickly. You're also paying for flexibility. Need someone five days a week for three months, then two days a week for another three? Project finished early? That's fine.
If you need someone indefinitely to run business as usual, hire permanently. If you need to fix something, transform something or bridge a gap, interim delivers better value.
Like to know more? Get in touch.