IMS Executive Ltd recently conducted a survey of 2,000 public sector Interim Executives, including those from umbrella companies, to find out how willing they would be to reduce their daily rates.
They discovered that many had already cut their rates to the bone but of those who charge between £500 and £900, 53% would think about a cut of between 10% and 24%. Of those interims and freelancers who charge at the lower end, a few would contemplate a reduction of up to 40% if it meant they could remain working.
The most highly specialised interims argued against any sort of rate cut saying it would be short-sighted. They believe that they have a proven track record of implementing change management projects that have saved millions of pounds for the government.
Tony Shearing, the Sales and Marketing Director for IMS executive Ltd pointed out that it made economic sense to take on short-term skilled interims who have skills and experience that are rarely seen amongst permanent staff. Since the employer is not responsible for Interims’ NICs, pension contributions, holiday or redundancy pay, they are also cheaper than regular employees.
Only a third of all public sector change projects manage to meet all of their objectives, on budget and on time, Shearing points out. But government departments still often make the mistake of seconding permanent staff into those roles in the mistaken belief that it will cut costs.
Clients should think about which candidate can provide the best value for money rather than how little an experienced interim will be prepared to accept. The best justify the client’s investment by delivering the desired results.
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