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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.”