Interim vs Permanent Cost Comparison
An senior Interim resource can provide up to 32% savings versus a permanent equivalent when the total employment costs are taken into account. This can be important when aiming to acheive budget reductions, while still delivering organisational objectives.
| Employment Costs | Permanent Cost | Interim Cost |
| Salary | £120,000 | NA |
| Pension (13.6%) | £16,320 | zero |
| Employers NI (10.1%) | £12,120 | zero |
| Holiday (35 days paid) | £16,600 | zero |
| Public holidays (8) | £3,794 | zero |
| Sick days (9.2 national average) | £4,364 | zero |
| Up to 10 Training days, including external costs for 5 days | £9,743 | zero |
| Equivalent daily rate | £723 | £750 |
| 12 months, 5 days a week, assumes 35 days unpaid leave | £182,941 | £163,500 |
| 12 months, 4 days a week, assumes 35 days unpaid leave | NA | £123,750 |
Notes - based upon 253 Working days in the year, 365 days less 104 Weekends; 8 Public
holidays.
Sources: Ten Top Facts about the Local Government Pension Scheme – Unite (19.1.2010);
Local Government Employers Sickness Absence Survey 2008/09; Direct.gov.uk
Key advantages of using Interim vs a Permanent recruit:
Permanent Director Interim Director
- Fixed employment costs > Daily rate charged for days worked
- 3 month notice period > 7 day notice period
- 10 weeks to recruit > 3 days to recruit
- Member of Paid Service > Classed as a supplier
- 6 month induction period > Performance measured from day 1
- Redundancy liability * > No redundancy liability
means?