Interim professionals charge a day rate based on their track record, experience, seniority level and the value the business will receive from that interim solution. Contrary to popular belief, interim day rates are not calculated by dividing an employee salary by the working days in the year.
This is because interim professionals are businesses in their own right. They offer a specialist service and their day rate is inclusive of all the costs an employer may pay in addition to the base salary of a permanent employee.
As a guide, an interim day rate can be calculated as:
Annual salary plus 30% divided by 220 days
Dividing an annual salary by 260 days (the typical method) might be used for pricing a fixed term contractor. The potential downside may be the business is more likely to attract people who have recently been made redundant or are between permanent jobs rather than a seasoned interim professional who has a track record of completing interim assignments. Any money saved can be swallowed up in delays, recovery, and replacement costs if the assignment isn’t implemented properly, or if the person leaves the business during the assignment because they have landed themselves a permanent job.