‘Pro Rata’ – The current curse of the Interim Manager

‘Pro Rata’ – The current curse of the Interim Manager

The marked increase in interim management assignments offered on a ‘pro rata’ basis cannot of gone unnoticed to any interim manager currently looking for an assignment.

With a glut of suddenly redundant staffers offering themselves up for interim work, many employers are taking the cheaper option of engaging a recently displaced employee on a ‘pro rata’ basis, whereas in more austere economic times they would have chosen an established interim manager.

Are companies sacrificing quality over cost by taking the cheaper option? Are organisations underestimating the value that a credible and experienced interim manager brings to the party?

In my opinion, engaging an established interim manager is a totally different proposition than putting your trust in someone who is only there due to enforced redundancy.

An experienced interim manager brings gravitas and an understanding of how to get things done learnt through interim experience of different corporate cultures and working environments. To an established interim manager their reputation is everything and they bring a commitment to successfully deliver as they know failure will affect their credibility and make it difficult to land their next assignment.

Engaging a recently deposed employee on a ‘pro rata’ basis may be cheap, but will they have the same level of commitment? Will they be off at the first whiff of a permanent job? Will they be bothered about delivering if they don’t see interim as a career move? Are they only taking on the interim assignment to pay the mortgage, or until something better comes along?

Offering a ‘pro rata’ salary is a genuine risk as companies are not going to attract the best candidate for the assignment, as an established interim manager will typically charge a daily rate equivalent to a third more than the pro rata rate. So going ‘pro rata’ may provide some ‘jam today’ for a beleaguered business, but in the longer run (if a project is not delivered) it is likely to heap more pressure and financial strain on the business.

Comments

Dave D'Arcy said…
David,

I couldn't agree more. The risk currently is that with the many people that are not career interims that offer themselves at pro rata agreements, is in fact encouraging employers to ineffect "test drive" people for permanent roles.

These are indeed difficut times. It has proved frustrating and I can only hope that persistance pays. In an effort to maintain humour I have created my own blog. Take a look at http://jobnotcompliments.blogspot.com/
Roger Page said…
I am very surprised indeed at the comment that 'established interims charge a third more than pro-rata', because this is a gross under-valuation of the true interim manager. Anyone that charges 1.33 times pro-rata is seriously under-selling themselves. The true interim is supposed to be significantly over-qualified, by design, for the assignments undertaken. Most true interims are advised to charge, and do charge, around 0.9% of the annual package of the equivalent perm manager, which equates to around 2.1 times the daily package, not 1.33. In many cases, however, 0.9% is comparable with full employment costs.
David Toan said…
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David Toan said…
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