In recent weeks I have spent a lot of my time talking to recruiters and investment companies who use the services of interim executives and non-executive directors.
A few questions which usually arise suggest a common view of the current market: Is Brexit having any effect on the interim market? Not at the moment but that might change when the progress starts to be more tangible. Is the interim market buoyant at the moment? No more or less than usual. What about rates and IR35? Definitely having an effect on public sector placements, less so in the commercial sector.
One question which is always asked is: What is your day rate? I’d like to explore this in more depth as there are nuances to the answer which are not always appreciated.
Most interim’s and NED’s work through a service company and offer a day rate. Sometimes this is inclusive of expenses , sometimes not. Many, but surprisingly not all clients, require a contract that endeavours to indemnify them from any consequences of IR35. The day rate is usually negotiable around such areas as expected longevity of the assignment, location and so on. In the end, whatever agreement is reached has to work for both parties.
An area which is often not explored or understood very well, is the question of full versus part time.
Many clients, especially if the reason for the hire is to resolve an unexpected crisis: a resignation perhaps, or (more usually in my experience) a dismissal, want full time working. Depending on the type of organisation, especially for start-up’s or emerging companies, this can seem to be prohibitively expensive; or at least force them to disregard significantly more experienced interims. Ultimately, that could prove to be a costly decision.
In reality, beyond the first few weeks, most clients don’t need full time support. Typically, one or two days a week in the office is enough to keep control of the organisation, review progress and direct the management team for the next steps. A smaller proportion of the rest of the time, especially if the assignment has a significant business development or fund raising element, is usually spent arranging and attending meetings or responding to phone calls.
This model works well for two or three clients being engaged in parallel. With the knowledge and agreement of all parties, everyone gets their required time in person with the team and the Board, plus ad-hoc meeting and phone activities as required.
That effectively provides each client with a five day/week (or more) service at a fraction of the cost.
An experienced interim or Non-Executive Director, who demonstrates a track record of success, can make a truly positive difference to companies of all types and sizes. If you or your prospective clients would like to explore this in more depth, please don’t hesitate to contact me.
Kevin Buckley is an experienced interim executive and independent consultant, with a background in international general management, product development and innovation. He has worked in a wide…
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