When businesses first look at interim day rates, the numbers can initially seem high. Day rates can look expensive compared to a permanent salary, but such a comparison misses the full picture.

What a day rate actually covers

Interim executives don't receive benefits. Everything a company normally provides must come out of that day rate:

·      Professional indemnity insurance to cover board-level decisions and commercial risk.

·      Pension contributions.

·      Private medical insurance.

·      Accountancy and legal fees.

·      Professional development and training.

·      Software and technology.

Interims need to factor in that we receive no paid annual leave or sick pay and no notice period compensation.

On paper an interim working 200 days a year looks like they cost more than a permanent executive. After covering all these costs plus tax, actual take-home is actually closer to what a permanent employee receives. The day rate isn't profit—it's covering everything an employer would normally provide.

A permanent CMO actually costs a business significantly more once you add employer National Insurance (13.8%), pension contributions, benefits, bonus structure, recruitment fees (typically 20-30% of salary), and the cost of a poor hire if it doesn't work out.

A good chunk of that cost is incurred that's before the new permanent hire has delivered anything of real substance, with a 3-6 month ramp-up period while they learn the business. Whereas a decent interim is productive from week one and doesn’t always require 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 while they've mentally checked out.

The interim day rate buys you immediate expertise. You get someone who's done this before, in businesses similar to yours, who can diagnose problems in weeks rather than months. Someone who's 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 or priorities changed?  

Interim executives are particularly cost-effective during recruitment transitions whilst you find the right permanent hire, or transformation projects with a clear endpoint, or situations requiring specific expertise you don't need permanently.

If you need someone indefinitely to do business-as-usual operations, hire permanently. If you need to fix something, transform something, or bridge a gap, interim delivers better value.

Initially the day rate might look high, but when you calculate what you actually get it's often the most cost-effective way to solve marketing leadership challenges.

Like to know more? Get in touch.