Most business owners do not know the right answer.
When we ask business owners what an experienced sales, finance or production director costs today, their answers are often tens of percent away from reality.
That is not their fault.
The labour market has changed dramatically in recent years. Many managers who have worked in a company for ten, twenty or thirty years are paid in line with the time they joined. At the same time, the market offers people with an entirely different level of experience, competence and results.
Before you start comparing the options, it pays to find out two things:
- What a high-quality manager costs on today’s labour market.
- What your own employee really costs.
Step 1: Choose a position
- Standard manager — / gross monthly salary
- Experienced manager — / gross monthly salary
- Top manager — / gross monthly salary
The levels are based on current Czech labour-market data (ISPV for 2025).
Keep reading to find out more!
What do these figures mean?
- Standard manager
- The usual market level. Suitable for a stable environment and standard operations.
- Experienced manager
- Among the most sought-after managers on the market. Companies look for them in times of growth, change or more demanding projects.
- Top manager
- Handles complex situations and leads transformations, restructurings or major growth projects. Their pay is considerably higher, as is the value they bring to the company. They can avoid fundamental business risks, or at least minimise them.
Step 2: What does a high-quality manager in full-time employment cost a company today?
Most companies compare the salary of their current manager. But that says nothing about what a high-quality manager costs on today’s labour market.
The difference between an average and a top manager is not a matter of a few percent. Very often it is substantial.
The key point: the difference in the results they bring is just as large. Smart companies know this, which is why they hire the best managers.
Step 3: What does your own manager in full-time employment really cost you?
Companies usually track only the gross salary. The real costs are considerably higher. Total costs usually include:
- Employer’s social security and health insurance contributions
- Company car, benefits and equipment for the manager (phone bills, PC, etc.)
- Holidays and other paid leave (sick days, sick pay, etc.)
- Fees to headhunters or recruitment agencies, time spent onboarding managers
- Recruitment and onboarding – other managers’ time spent on recruitment and supervision
- Severance pay (in the event of dismissal under the Labour Code)
Step 4: What will a manager cost you on today’s labour market?
Estimated costs per month actually worked · Choose a position
- Standard manager — / month
- Experienced manager — / month
- Top manager — / month
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| Item | Standard manager | Experienced manager | Top manager |
|---|---|---|---|
| Gross salary | — | — | — |
| Employer’s contributions | — | — | — |
| Company car, benefits and equipment | — | — | — |
| Recruitment and onboarding | — | — | — |
| Severance pay | — | — | — |
| Total monthly costs (accounting) | — | — | — |
| Costs per month actually worked | — | — | — |
Model estimate: social security 24.8% of gross salary (capped at the maximum assessment base of CZK 2,350,416 a year), health insurance 9% of the full gross salary, recruitment and onboarding (6 monthly salaries) and severance pay (3 monthly salaries), both spread over 24 months. Company car estimated at CZK 17,500 and computer with benefits at CZK 10,000 a month. The costs per month actually worked are the annual costs divided by the 10 months the manager actually works after holidays, public holidays and sick leave.
What to take away from the calculation
If the final costs surprised you, you are not alone. Most business owners compare only the gross salary. Only a few compare the real costs. And even fewer companies compare the costs with the value a manager can create. That is exactly why many companies focus on the price of a person rather than on the results that person should deliver.
Step 5: Is there another way?
Some companies look for an experienced manager through:
- job advertising,
- recruitment agencies,
- executive search,
- referrals.
But there is a second option: bringing in an experienced manager on a long-term operational lease. At BM4U we do not start by looking for a candidate, but by understanding the situation. First we jointly define the goals, deadlines, expected results and risks. Only then do we approach managers from our network. These are not unemployed job seekers! They are experienced managers who lead companies, teams and projects and are looking for a new challenge. The managers interested in the assignment will personally present their view of the situation and propose a concrete solution. Once you have chosen one of them, we set up a simple cooperation model. Part of the fee is paid continuously and part is tied to meeting the goals defined in the Action Plan.
Step 6: What does a manager who does not deliver results cost you?
Having studied the costs and benefits, most owners discover something interesting. Even though a top manager costs considerably more, their overall economic benefit is dramatically higher! The worst thing an owner can do is hire an average manager for demanding tasks and expect above-average results. That is why the most important question is not: What does a particular manager cost?
The far more important question is: What value can they create?
If a sales director increases turnover and margin, a production director removes long-standing operational problems, a finance director prepares the company for financing or a transformation manager successfully delivers a change, the manager becomes an investment, not a cost. It has to pay off for the company.