Tuesday, February 10, 2009

"Try before you hire" scenario. See how to calculate the ROI (Return on Investment) of engaging an interim manager:

How the ROI Adds Up
Based on a £70,000 Management Position

* Four-month delay incurred finding a permanent employee = £70,000 lost contribution. Why?
* Speed of delivery (depending on project) = £200,000 to £1,000,000 in accelerated results. Why?
* Value of impartial advice = £20,000. Why?
* Value of having someone overqualified in place = £20,000. Why?

Cost of interim £700/day over four months = £56,000. More about pricing.

Return = between £310,000 and £1,200,000
ROI = between 5 and 21

The actual return on investment varies enormously, but as a guide we would say that for every £1 you invest in an interim manager you get between £5 and £21 back. See our case studies for examples.

If you would like to read the full article and interact with the questions asked, please go to the ExecutivesOnline website by clicking at the above title.

No comments: