Why do companies work with interim managers?
Interim management is a proven method of finding competent personnel at short notice who are temporarily needed for specific projects. The advantages of this model include rapid availability, specialized expertise for a specific project and flexibility for temporary management needs, be it to bridge management vacancies, in the event of illness or maternity leave of managers, or to support short-term projects. Read more here about why companies should rely on interim managers.
What about the costs of interim managers?
Although interim managers often have higher daily rates than permanent employees, they can be more cost-efficient overall, as they are only hired for the required duration and there are no long-term obligations such as salaries, bonuses or benefits.
But what exactly will the costs of interim management in Austria depend on in 2024? We have summarized the cost factors for you.
6 cost factors for interim management in Austria
When planning the assignment of interim personnel, you should consider the following factors in order to make a realistic estimate of the financial outlay:
1. Responsibility and role of the interim manager
A key cost factor in interim management is the level of responsibility assumed by the interim manager. The higher the position and the associated tasks, the higher the costs usually are. Interim managers who act as CEO or CFO and make comprehensive strategic decisions will charge significantly more than a manager who heads a department or oversees a specific project. The responsibility that interim managers have directly correlates with the level of experience and expertise required, which in turn has an impact on costs.
2. Location: Remote or on-site?
Another decisive cost factor is the question of whether the interim manager performs their tasks remotely or on site at the company. An on-site assignment is often associated with additional costs, such as travel expenses, accommodation and meals. These additional expenses can have a significant impact on the overall costs. However, in times of increasing digitalization and remote working, more and more companies and managers are opting for a hybrid model or even fully remote work. This can reduce costs but requires a well-functioning digital infrastructure and communication channels.
3. Industry and topic
The specific industry and subject area in which the interim manager is deployed also play a significant role in the cost structure. Industries such as IT or financial services, which involve specific expertise and high regulatory requirements, tend to demand higher fees. An interim manager who works in a highly specialized industry often brings in-depth knowledge and many years of experience, which is reflected in the costs. The specific topic - be it restructuring, digitalization or international expansion - can also influence the costs, depending on the complexity and expertise required.
4. Duration of the assignment
The duration of the assignment is another key factor that influences the cost of interim managers. Short-term assignments of a few weeks or months can be more expensive compared to long-term projects, as interim managers often charge higher hourly rates for shorter projects. Long-term engagements, on the other hand, offer the opportunity to develop and implement a long-term strategy, which can often result in a lower monthly charge. However, it should be noted that longer assignments will result in higher overall costs, even if the hourly rate is lower.
5. Geographical location
The geographical location of the company and the interim manager can also influence the costs. Interim managers in urban areas or economic centers such as Vienna or Linz usually charge higher fees than those in more rural regions. This is often due to the higher cost of living and greater demand for qualified managers in urban areas. Companies must therefore consider that the costs for interim managers in Austria can vary depending on the location.
6. Additional cost factors
In addition to the factors already mentioned, there are other cost factors in interim management in Austria that should be taken into account:
- Specialized knowledge and certifications: If an interim manager has special certifications or expertise that are crucial to the project, this can influence the costs.
- Market conditions: General market conditions and the economic situation can also have an impact on costs. In times of high demand for interim managers, fees also tend to rise.
- Performance-related remuneration: Some interim managers agree on performance-related remuneration models, where part of the payment is linked to the achievement of certain targets. This can make the cost structure more complex, but also incentivizes the interim manager to achieve certain results.
Our conclusion: Flexibility and transparency are crucial
The costs for interim managers in Austria in 2024 depend on a variety of factors that can vary depending on the project and company. In order to better estimate the average costs of interim managers in Austria, it is important to precisely analyze the specific requirements and framework conditions of the respective assignment. When selecting an interim manager, companies should not only pay attention to the costs, but also to the quality and suitability for the respective task.
Transparent communication about the cost factors and a flexible approach to contract design can help to keep costs in check and at the same time get the best possible added value from interim management. Ultimately, interim managers offer the opportunity to react quickly and efficiently to changes and bring specific expertise into the company - an investment that proves to be extremely valuable in many cases.
