Interim managers reaching new level of professionalism according to research update

According to the six monthly update of the annual survey of the UK interim management market from specialist recruiter, PRAXIS, interim managers are having to respond to greater demands from employers across both the commercial and public sectors than ever before.

ìOur survey of over 1,600 professional interims and nearly 100 organisations at the end of 2005 found that the number of assignments had actually declined during the year,î says Sanjay Gohil, the director of PRAXIS, who organised the research. ì58% of the employers we spoke to had used an interim manager in 2005 in comparison to 64% in 2004. Our snapshot view of the first half of 2006 suggests that this level of demand hasnít grown.î

At first this seems like bad news for interim managers, but Sanjay Gohil points out that the figures mask the true state of the market. ìAlthough the actual level of assignments has remained static, their quality has gone up. Organisations are becoming much more aware of what the right interim manager can contribute and they are consequently putting much more time and effort into the recruitment process, into establishing key performance indicators and ensuring that the knowledge and experience an interim manager brings ëstays behindí to benefit the business in the longer term.î

The full survey at the end of 2005 found a very wide range of reward on offer to interim managers with daily rates varying from as little as 300 to as much as 3000 (up from 2000 the previous year) and an average of 680. ìThe increasing focus on high quality interim managers means that daily rates in 2006 are shifting steadily towards the upper end of the range,î says Sanjay Gohil. ìPerhaps not surprisingly, the financial services sector continues to be the best payer because of the pressures generated by new products and a tightening regulatory environment, but even the public sector, despite fears generated by the Gershon Report, is showing itself willing to pay well for interim managers as long as it can see value for money.î

In December 2005, the research found that the sectors making most use of interim managers were the public sector, financial services and manufacturing. ìIf anything demand in the public sector has grown in 2006 although selection processes are increasingly rigorous and expectations of delivery very high. Financial services remains buoyant and in manufacturing, despite itsí well publicised difficulties, demand is high as companies look for a quick injection of expertise which can help them to operate more effectively. However, the real new stars of 2006 are telecoms and technology, where demand has shot up over the past six months.î

ìThe key message from the first half of 2006 seems to be that organisations are finally learning to distinguish between an interim manager and a temp or contractor. Interim managers are generally no longer being used simply to plug gaps or ëhold the fortí but to fulfil a specific and clear task which will improve their clientsí effectiveness, not just immediately, but well into the future.î