How do you determine your hourly rate as an interim professional?

You know you're good at what you do. But why does setting your hourly rate sometimes feel like gambling? Too high scares off clients; too low doesn't do justice to your expertise. How do you find that balance - a rate that clients find attractive AND reflects your value?

Determining a good hourly rate is not wet-finger work. It requires understanding your costs, market value and unique impact. In this blog, you'll discover not only how to calculate your ideal rate, but also how to present it with confidence.

1. How do you discover your unique value?

Your hourly rate is not just time x expertise; it is a reflection of the impact you deliver. Ask yourself: what makes me the best choice for clients?

For example:

• Speed: Fill your vacancies 30% faster than the market standard? That saves time and money.
• Niche expertise: Are you a specialist in a specific sector such as IT or public projects?
• Impact: How does your work help clients become more productive, efficient or profitable?

Practical example:

An IT recruiter who quickly finds technical specialists can save a client thousands of dollars in lost productivity. This justifies a rate at the upper end of the scale.

Action: Make a list of three benefits you offer. Use this list in your conversations with clients to justify your rate.

"Your rate is like a premium watch: customers need to see that it is more than just telling the time."

2. What is the market average for interim professionals?

The market determines much of what customers are willing to pay. Use benchmarks to determine a realistic range.

Average rates in recruitment:

• IT and tech recruitment: €75 to €85 per hour.
• Public sector: €65 to €80 per hour.
• Location: Assignments in large cities often offer higher rates than in smaller communities.
• Experience: Novice professionals are at the lower end of the scale; experienced interim managers at the upper end.

Action: Collect rates through your network, freelance platforms and LinkedIn. This will help you position your rate within the market.

3. Step-by-step: Calculate your minimum rate

A minimum rate is what you need to stay financially healthy. This rate should cover your costs as well as leave room for growth. Use this formula:

(Annual salary + overhead + taxes) ÷ billable hours = minimum rate

Calculation example:

• Annual net income: €60,000 (this is what you ultimately want to be left with).
• Overhead costs: €10,000 (such as LinkedIn Recruiter Seat, insurance and training).
• Taxes: ±35% of your gross income.
• Declarable hours: 1,600 per year (consider vacations and administration).

Step 1: Calculate your gross income
To leave €60,000 net, you need €92,307 gross.

Step 2: Add overhead
€92,307 + €10,000 = €102,307

Step 3: Divide by your billable hours
€102,307 ÷ 1,600 = €64 per hour minimum rate

With a 20% margin for profit, you arrive at a rate of €76.80 per hour.

Opinion:

• Public sector: Between €65 and €80 per hour.
• IT or tech: Between €75 and €90 per hour.

4. Incorporate overhead costs into your rate

Many interim professionals forget to include overhead costs, such as software or training, in their rates. This can mean working for less than €60 an hour unnoticed.

Common overhead costs:

• LinkedIn Recruiter Seat: ± €6,500 per year.
• Insurance: ± €60 per month.
• Office space: ± €4,800 per year.
• Trainings and conferences: ± €2,000 per year.
• Marketing and acquisition: ± €1,000 per year.

Tip: Charge your costs to your hourly rate and make sure they are fully covered.

5. How do you present your rate as an investment?

It's not just about what you charge, but how you present it. Clients don't want a cost; they want an investment that gets results.

Sample pitch:

"My rate is €80 per hour. With this you get a recruiter who places candidates 30% faster, saving time and money."

Action: Practice your pitch. Exude confidence so customers understand your value.

6. Offer options: Hourly rate or project price

Sometimes a project price can be more attractive to clients. This offers them more clarity and prevents you from having to account for hours.

Example:

• Hourly rate: €80.
• Project price: €9,500 for a three-month project, including additional consulting hours.

By offering multiple options, you give customers control without undermining your value.

7. Checklist: Avoid these mistakes in rate setting

1. Betting too low: A low rate can hurt your brand and is difficult to raise.
2. Overhead forgotten: Make sure your costs are always included in your rate.
3. No annual review: Adjust your rate as you grow in experience and expertise.

Action: Annually ask the question, "Is my rate still paying for my growth?"

8. Negotiate without concessions

Negotiation does not have to be a competition. If a customer asks for a discount, offer alternatives:

• Working fewer hours per week.
• A longer duration of the assignment.

Sample script:

"I cannot lower my rate, but I am happy to offer you a package with additional consulting or a discount for long-term cooperation."

9. Stay visible and top of mind

Your rate is only part of your success. Clients need to see you as the expert. Regularly share successes, insights and trends on LinkedIn to keep your network warm.

Action: Plan a weekly LinkedIn post in which you make your value visible.

Conclusion: Choose a rate you deserve

Your hourly rate is not just a number; it is a reflection of your impact. Choose a rate that does your value justice and convinces clients.

Need help determining your ideal rate?
Schedule a strategy session with People&. Together, we'll make sure you not only get what you deserve, but also grow in your career as an interim professional.

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