The public sector simply does not make enough use of cost effective temporary staff at manager level and above.
London, UK (PRWEB) May 26, 2011
Only 1.4 per cent of public payroll is spent on interim management in the UK, it has emerged. Analysis of figures presented by the government by Ipsos MORI, carrying out unbiased research on behalf of the Interim Management Association, concluded that usage of such experts across the entirety of the public sector costs less than £290 million a year - a very lean percentage of the £20.5 billion that forms the whole payroll.
These senior managers and executives, recruited on a short-term basis, prove that the government continues to spend more money on consultants than interims. Interim Partners say that Whitehall is currently investing £997 million in consultants each year, equating to roughly five per cent of the total public sector payroll and a 247 per cent mark-up on interim costs.
Managing director of Interim Partners Doug Baird said: "Whilst it is popular to portray any contractors used by the public sector as evidence of excess the reality is that the use of interims is a tiny fraction of the public sector's pay bill. It is often overlooked that interims working in the public sector are there to implement and deliver improvements in services or reductions in costs rather than just to consult and plan." Interim Partners went on to assert that providers like itself charge as little as half the price of a management consultant for the same level of seniority.
The organisation explained that in a sense akin to the private sector, some interim managers may occasionally get overpaid, though this problem could be fixed by benchmarking pay rates of interims with greater care. On average, daily rates of interims in the public sector - at £743 - are two per cent lower than in the private sector.
Mr Baird added: "The public sector simply does not make enough use of cost effective temporary staff at manager level and above. Making greater use of managers on a flexible contract basis, without any of the public sector's large pensions or redundancy costs could save the public sector hundreds of millions in payroll costs."
# # #