Daily Rate verses Pro Rata
Yes this old topic is rearing it's head again. A small number of our clients have been asking for candidates to work on a pro rata basis rather than their normal daily rate so we thought it was worth stirring the pot and just explaing why that is not the best plan.
If a client is only prepared to pay a lower pro rata rate, and in some instances no expenses, then they are narrowing their audience down to the local unemployed community. That's perfect if you have a Technical Manager who lives 5 miles away who just happens to have worked in chilled food manufacturing, who has good contacts with the major retailers and has led sites through successful retailer and BRC audits. Not to mention they recently won the lottery and don't need to pay their mortgage and they only go to work for the enjoyment of it. Don't let it put you off that they turn up on site in a Bentley! Is anyone getting the point yet? Exactly, a very unrealistic scenario.
If you need a professional interim management specialist who can drop in to your business, make an impact from day one and look after a major function then they need to be rewarded accordingly.
Professional interim managers pay their own NI and don't get paid for holidays. They pay their own professional indemnity insurance and they are away from home every week. They take the risk of finding the next contract and often have to cover themselves financially for breaks in between contracts.
It's not all doom and gloom because they enjoy the variety of working for different businesses, they don't get bogged down in internal politics and they have fresh challenges which can be extremely motivating; which is why the professional interims are not clock watchers and they regularly put in extremely long days.
So, all in all, a benefit for both sides of the party can be had but as the old saying goes, if you pay peanuts... whose that scratching their armpit over there swinging off the coat rack?
If a client is only prepared to pay a lower pro rata rate, and in some instances no expenses, then they are narrowing their audience down to the local unemployed community. That's perfect if you have a Technical Manager who lives 5 miles away who just happens to have worked in chilled food manufacturing, who has good contacts with the major retailers and has led sites through successful retailer and BRC audits. Not to mention they recently won the lottery and don't need to pay their mortgage and they only go to work for the enjoyment of it. Don't let it put you off that they turn up on site in a Bentley! Is anyone getting the point yet? Exactly, a very unrealistic scenario.
If you need a professional interim management specialist who can drop in to your business, make an impact from day one and look after a major function then they need to be rewarded accordingly.
Professional interim managers pay their own NI and don't get paid for holidays. They pay their own professional indemnity insurance and they are away from home every week. They take the risk of finding the next contract and often have to cover themselves financially for breaks in between contracts.
It's not all doom and gloom because they enjoy the variety of working for different businesses, they don't get bogged down in internal politics and they have fresh challenges which can be extremely motivating; which is why the professional interims are not clock watchers and they regularly put in extremely long days.
So, all in all, a benefit for both sides of the party can be had but as the old saying goes, if you pay peanuts... whose that scratching their armpit over there swinging off the coat rack?
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