6
Jul

Interim Management

Escrito el 6 julio 2009 por Jesus Guerro en General

Interim Management
Nowadays that the Labor Market Reform is “On fire” I would like you to think about the possibility of incorporating Interim Management Formule facing Labour Contracts, at least, when recruiting executives. The cost of Social Security is 33% of gross wage. It implies a significant increment in the cost of labour by the case of exectuvie salaries and so, a heavy bag on the back of companies.
In Service Contracts, the employee figure becomes an independent proffessional who invoices month by month. The Company takes the social cost out of its income statement while the independent professional has the opportunity to choose the range of social quote he prefers to pay from 245 euros (in Spain). The difference may be negotiated between both parts to be shared according to the agreement.
Another advantage for the independent proffessional is the possibility to deduct expenses which otherwise he couldn´t. For example, fuel, toll, meals or public trips. These are tax drivers to be considered becasue he/she wil be able of compensate partially or totally the VAT payment.
Although Interim Management was thougth to hire business specialists to cover internal positions for concrete periods in special situations, it suposses with no doubt a new breach for companies and proffessionals.
Currently this type of recruitment is not as common as might be. Maybe the culture embeded for years could be recluctant when considering proffessional service contracts. Often these professional profiles are associated to high levels of Independency and lack of loyalty focus. Nothing could be further from the truth. Labour Contracts can be cut whenever both the company and the employee decide it. On the other hand, proffessional contracts can last whatever necessary with the highest loyalty and confidentiality.

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