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IMS Newsletter - Nov/Dec

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IMS Newsletter - Nov/Dec

  1. 1. Interim Management Solutions IMS 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 www.imsinasia.com CANDIDATE PROFILE Christopher Beebe 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). IMS Suite 13G Shanghai Industrial Investment Bldg 18 Cao Xi Bei Lu Shanghai 20030 China Tel: 86-21 6428 2460/1/7 www.imsinasia.com
  2. 2. Interim Management Solutions IMS 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- ployment Salary Extra costs Final cost of em- ployee Year 1 100% of employees base salary + 20-30% In first year: Recruiter fees + 10-20% In first year: Induction, training & Learning curve + 25-40% for expat package (if appli- cable) Employees cost on average 1,5 to 2 times of their base salary. Year X 100% of employees base salary + 15-25% In inter- mediate years: Train- ing, management, annual salary in- crease and holidays Employees cost on average 1 to 1,5 times of their base salary.
  3. 3. Interim Management Solutions IMS Final year of employment 100% of employees base salary + 10-25% In final year: Notice, hando- ver and productivity loss costs + 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- fective? 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@ jmgemini.com

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