November/December 2010 Edition
IMS TURNS SOCIAL!
At IMS, we want to hear from those important to us. We are constantly looking for ways
to reach out to past, present and future clients and candidates. This is why we have re-
cently got involved in Social Media. We know that it is important to interact with clients
and candidates through various means. More and more people are moving to Social Media
and we want to in the midst of the transition.
Our dedicated consultants are there to help. Whether that be a general enquiry, or ques-
tions on living in Asia; we are there to help you in any way possible.
We are currently available on the following platforms:
For more information, contact our marketing department.
Find more information about
IMS on our brand new website
An executive focused on international business,
Chris has spent more than 20 years working with
the China and Asian markets. Having lived in
Greater China for more than 10 years, Chris has
gained an understanding of the people and busi-
ness practices of this region, as well as a proficien-
cy in Mandarin Chinese.
During his sales and marketing career in the sport-
ing goods and high tech industries, Chris has man-
aged international distributor networks, coordinat-
ed subsidiaries’ activities as well as established and
run sales and marketing offices in China. Having
re-invigorated sales strategies for several firms,
Chris excels in product and brand development,
sales training and market growth.
Chris holds an undergraduate degree from Wabash
College in Asian Studies, and a Masters in Inter-
national Management from Thunderbird (American
Graduate School of International Management).
18 Cao Xi Bei Lu
Tel: 86-21 6428 2460/1/7
IS IT EXPENSIVE TO HIRE AN INTERIM MANAGER?
Over the last few months, IMS has been approached by many companies in search of a
solution that only we can offer – Interim Management in China. However, a selected few of
these companies had the belief that an Interim Manager was ‘expensive’. After all, Interim
Managers are recognised experts available immediately, and are capable of great things in
such a short space of time.
We were surprised. We always thought that an Interim Manager was clearly great value for
money and has great ROI. Still, we thought it would be a good idea to compare the cost of
an Interim Manager to other alternative solutions.
Interim Managers Vs Full-time Employees; which is more economical?
It may seem too good to be true; however, Interim Managers enjoy what they do. They
like to work on a project basis; turning companies around for the better, then moving on.
The common misconception of Interim Managers is that they are more expensive than hir-
ing a full-time employee.
This is not true. The below calculation illustrates the average costs involved in employing a
full-time employee, here it is:
Year of em-
Salary Extra costs Final cost of em-
Year 1 100% of employees
+ 20-30% In first
year: Recruiter fees
+ 10-20% In first
training & Learning
+ 25-40% for expat
package (if appli-
Employees cost on
average 1,5 to 2
times of their base
Year X 100% of employees
+ 15-25% In inter-
mediate years: Train-
annual salary in-
crease and holidays
Employees cost on
average 1 to 1,5
times of their base
Final year of
100% of employees
+ 10-25% In final
year: Notice, hando-
ver and productivity
+ 0-100% In final
year: Depending on
exit method, legal
and other exit costs
Employees cost on
average 1 to 2,5
times of base salary.
*calculation does not include equipment, expenses, software and facilities costs.
Full-time employees cost much more than just their base salary. One of the main benefits of
an Interim Manager is that they are provided at a one off monthly fee. This includes the nec-
essary fees and expenses to make a simple outsourced solution. Also, one of the main points
to consider is that an Interim Manager also does not require holidays.
The most noticeable figure in the calculation is the total cost for the first year of employ-
ment. In all levels of recruitment, the first year of employment is the most expensive for the
employer. As the majority of our assignments last less than 12 months, we provide higher
caliber candidates for around the same cost as a full-time candidate with less experience. So
whilst a full-time employee may seem cheaper at the outset, this is not always the case.
Interim Managers Vs Management Consultants; which is more cost ef-
As we all know, Management Consulting can be a very effective method if used correctly.
However, Management Consultants take on a purely advisory role. They do not make deci-
sions which directly affect everyone involved in the business. They also do not have a strong
presence within the company. Interim Managers, on the other hand, parachute into different
situations within companies and start to make positive changes as soon as they arrive. This
approach can be seen as much more effective.
Another difference between Interim Managers and Management Consultants is price. The
average cost of a Management Consultant is by far more expensive than an Interim Manager.
For the same talent and same level of experience this seems to be a little too expensive.
So who is the most expensive?
To conclude, Interim Management is not as expensive as people may think. Sure, their rates
may seem a little higher at the outset. However, the ROI is more than any other method of
outsourcing. When all other costs are considered, Interim Management is the more economi-
cally viable option currently available on the market.
For more information on the value and cost of Interim Managers, send us an email on ims@