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Interim management market sees 3% growth in 2012
 
 The latest Snapshot
survey from
award-winning interim
management provider
Russam GMS highlights a
3% growth in activity in
the interim management
market from December
2011 to December 2012,
indicating that a
growing number of
companies are hiring
interims to spearhead
business projects in
spite of a flat
economy.
  
   Despite activity
levels falling by 1.5%
compared with June 2012,
the overall 3% growth in
the past year indicates
the market is set on
growth – albeit slowly.
  
   There was good news
for part-time interims,
who saw their daily
rates increase slightly
to £606 by December 2012
from £583 at June 2012,
and now represent 31% of
the market. The increase
in part-time working was
identified by the Office
for National Statistics
last year and Russam’s
research indicates that
the professional interim
management market is
also seeing growth in
demand in this area.
  
   Manufacturing and
engineering continues to
be the busiest sector
for interims with 11% of
all assignments, closely
followed by financial
services (10%) and then
both the charity sector
and the NHS, which each
accounted for 7% of
interims’ assignments.
 
   
   The number one
interim job discipline
was change management
and transformation –
making up 23% of all
assignments; finance
specialists were also in
demand, undertaking 17%
of all assignments, with
general managers taking
on 14% of all
assignments. This has
dropped from 21% largely
due to the increase in
interims describing
themselves as change &
transformation
specialists.
  
   There is a continuing
move away from
businesses using
interims as ‘gap
fillers’. More than half
(55%) of interims are
now recruited to provide
specialist skills absent
in their client’s
business; 39% to
implement new strategies
and 36% to work on
special projects. Just
14% are hired to cover
temporary absences or
sudden departures – down
slightly from 15% in
June 2012.
  
   Businesses are
however, being careful
how much they pay for
interims. There was a
slight decline in
overall daily rates,
down from £619 to £593.
Those in the food
industry, however, saw a
substantial rise from
£595 to £712 in June,
with banking, finance
and insurance the only
other sector to have
seen a small marginal
 
 increase in rates (£701
to £702) in the last six
months.
  
   Regionally, rates
only rose in the west of
England from £496 to
£558 in the last six
months. However, the
international market
continued to expand with
daily rates increasing
from £718 to £759 a day
– indicating that the
overseas market is less
influenced by domestic
economic factors and
that businesses are
willing to pay more for
quality interims.
  
   Charles Russam,
chairman of Russam GMS,
commented: “The interim
market is showing
resilience in a very
flat economy. Market
conditions continue to
be tough. However, we
are pleased to see a 3%
growth over the past 12
months – indicating
small signs of
recovery.
  
   “Increasingly,
businesses are using
interims more
strategically to lead
change management and
transformation
programmes and,
particularly in the
finance and banking
sectors, to undertake
special projects or
implement new
strategies. Interims
offer skills and
experience that tend not
to exist within
companies and their
immediacy and
affordability is very
 
 appealing.
  
   “In line with other
industry reports,
part-time workers are
seeing an increase in
their rates and now
represent a third of the
market. We think this
trend will continue.
Interim managers are
working part time both
as a lifestyle choice
and because interim is
an attractive option for
many professionals,
particularly in a static
economy with a limited
number of permanent,
well-paid part-time
roles currently
available.”
  
   The research also
highlighted that a new
professional discipline
of change &
transformation
specialists has emerged,
with 17% of those
questioned describing
themselves as change
managers. This figure
has risen to 20% – the
highest category of
interims on assignment,
overtaking general
management and
reflecting the fact that
more interims see
themselves as change &
transformation
specialists rather than
general managers.
  
   Age continues to be
no issue in the interim
market with 52% of those
working as interim
managers in their 50s
and a constant 29% in
their 60s – with little
change since the last
survey. There is a small
 
 increase from 47% to 49%
of 50 year olds
currently on assignment,
with those in their 60s
on assignment remaining
constant at 34%.
However, it is people in
their 40s that make up
the highest proportion
on assignment (55%) and
these interims command
the highest daily rates
of £619 per day.
  
   Russam commented:
“Interim management is
one part of the UK
economy that values the
skills and experience of
older executives who
have kept their skills
and knowledge sharp, up
to date and relevant. In
this context, experience
is an instinct about
what works best in
changing situations and
which can contribute
hugely to ambitious and
entrepreneurial
businesses and help them
grow and develop.
  
   “Overall, we sense
the mood is positive for
the market and we have
seen some signs of
growth in spite of the
fact that the economy is
static. A slight decline
in daily rates is to be
expected as
organisations continue
to tighten their belts,
but at the same time
many are recognising
that they do need to
move their business
forward and interim
managers offer a quick,
cost-effective and
flexible way of doing
this.”
 
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