Four things you might not know about interim management

The history

The practice of hiring a well qualified and experienced professional on a short term basis to achieve an impact in a specific role or on specific objectives is often termed ‘interim management’. It started to make an appearance in the 1970s, having originated in the Netherlands, where employment practices meant losing employees due to business changes could prove very expensive.

Hiring managers with specialist skills on a short term contract made better business sense; the practice then migrated to the UK and throughout Europe. The interim management market as a whole in the UK is worth around £500 million – this covers sectors as diverse as aerospace, leisure and tourism, and FMCG (fast moving consumer goods). 

Rates

Interim management is a relatively new addition to the toolbox of not for profit organisations, often being seen as too expensive with day rates varying from £250 per day to around £800. The rates depend on the specialism and what is expected of the interim, they can occasionally top £1000 per day. However, the average national day rate is currently around £467. An interim with a well defined brief can be extremely beneficial to an organisation, often resulting in the placement being ‘cost neutral’ and sometimes resulting in significant savings.

Change management and establishing a brief

Many civil society organisations are facing considerable changes over the next couple of years and the short term involvement of an interim manager can really help to re-establish, re-organise or support an organisation during turbulent times.

According to the Institute of Interim Management survey 2010, change management was the reason for most of the recent interim assignments. In order to ensure clients get the best from their investment in an interim manager, organisations need to be clear about results they expect from the assignment.

Sometimes this will be to simply fill a gap, for example, if an HR Manager is leaving, an interim can be brought in to complete a handover from the outgoing manager and will continue in the role whilst the recruitment of a permanent replacement is completed, then handover to the incoming manager. However, if the HR Manager is leaving, the organisation may take the opportunity to reorganise their HR function and the interim will be required not only to complete a handover but to work with the Board in planning and delivering the reorganisation. They might then also be required to manage the recruitment of their permanent replacement.

The benefits

A huge advantage in using interim managers is that, as well as getting well qualified personnel who can really help bolster an organisation and manage change, the contract is for a fixed period of time with no expectation that the position will become permanent; neither do they incur tax or NI liabilities, sick pay or holiday pay.

Using a quality agent can assist with the process as they will be able to work with you to draw up your requirements and source you appropriate personnel, as well as negotiate rates and manage the contract including ensuring that your requirements are met.

We expect to see a rise in demand for interim managers over the coming months as organisations need quality, short term interventions to manage changes and reorganise to meet the demands of the harsher commissioning environment.