Navigating interim hiring: day rate vs. fixed-term contracts
In recent conversations with finance leaders, a recurring question has appeared: is a day rate or a fixed-term contract (FTC) the better option for interim hiring?
The answer depends on your business’s specific needs and the nature of the role you are looking to fill. Below, we’ll examine the advantages and considerations of both models to help you make an informed decision.
Day rate structure
A day rate structure is ideal for short-term projects or specific deliverables where flexibility is paramount. This model allows businesses to bring in highly skilled professionals on an as-needed basis. Some of the key benefits include:
Professional development and networking
Scotland has a strong network of professional bodies and associations that support the growth and development of tax professionals. The Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) have a significant presence in Scotland, offering regular events, seminars, and training sessions. These organisations provide valuable resources and networking opportunities, enabling you to stay updated on industry trends, regulations, and best practices.
- No long-term commitment: one of the primary advantages of a day rate structure is the ability to scale up or down as needed. This flexibility is particularly useful for businesses experiencing fluctuations in workload or those undertaking short-term projects that require specialised skills
- Access to specialists: day rate arrangements attract highly skilled specialists who can provide targeted expertise. These professionals often have experience in their fields and can deliver high-quality work within a short timeframe
- Cost efficiency for short engagements: with a day rate structure, you only pay for the days worked. This can be more cost-effective for short-term projects compared to a fixed-term contract, as it cuts the need for a long-term financial commitment
- Readily available candidates: the interim talent pool for day rate engagements is often readily available, allowing for a swift recruitment process. This can be crucial when projects need to start immediately
Recent day rate placements:
- Legal entity rationalisation project | FTSE 100 (Manufacturing)
- Senior Manager, Business Partnering | FTSE 100 (Engineering)
- Interim Group Financial Controller | Manufacturing
- Group Reporting Accountant | Technology (support whilst hiring permanent hire)
- Project Finance Manager | Private equity backed telecoms infrastructure
- Interim Finance Director | Financial services
- Interim Workday Finance Consultant | Private equity backed energy company
These examples illustrate the diverse range of projects and roles that can benefit from a day rate structure. From rationalizing legal entities in a manufacturing company to supporting finance systems in an energy firm, day rate professionals can provide the necessary expertise and flexibility.
Fixed term contracts
For longer-term interim hires, an FTC provides a more structured arrangement. This model is suitable for roles that require continuity, stability, and a deeper integration into the business. The advantages include:
- Continuity and stability: an FTC ensures consistency in leadership and operations. This is particularly important for roles that involve managing teams, driving strategic initiatives, or supporting ongoing projects. The stability offered by an FTC can lead to better outcomes and a more cohesive work environment.
- Greater business integration: professionals on fixed-term contracts tend to become more integrated into the business culture and operations. They can build stronger relationships with team members, understand the company’s long-term goals, and contribute more effectively to strategic initiatives.
- Attractive to candidates: an FTC is appealing to candidates seeking longer engagements. This can widen the available talent pool and attract professionals who might not be interested in short-term, day rate arrangements. Candidates looking for stability and a clear time limit for their engagement are more likely to consider FTC roles.
Recent FTC placements:
- Group Accountant | FTSE 250 (Supply Chain)
- Group FP&A Manager | FTSE 250 (Logistics)
- Financial Controller | PE Backed Retail
- Senior Reporting Accountant
These FTC placements highlight the types of roles where longer-term stability and deeper business integration are critical. Whether it’s overseeing group accounting in a supply chain company or managing financial planning and analysis in a logistics firm, an FTC can provide the necessary structure and continuity.
How Brewer Morris can help you find your next interim hire
Choosing between a day rate and a fixed-term contract depends on your specific needs and the nature of the role. If you need short-term, flexible expertise for specific projects, a day rate is the way to go. However, if you need stable leadership and greater integration into your business, an FTC is more suitable.
If you’re weighing these options, please contact us to discuss your specific needs and help determine the best approach.
Alternatively, if you are an interim professional looking for a new opportunity, check out our latest interim roles.
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