More than eight out of ten interim managers do not believe the organisations they work for measure the ROI of using interims, reveals research conducted by leading HR consultancy, Chiumento.
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Chiumentoís annual interim report indicates that flexible resourcing continues to be an important option for UK businesses, particularly in the current economic climate where organisations are more likely to reduce their headcount. Almost two-thirds of interims are confident that their number of assignments will increase this year. Accordingly, 53 per cent of interims believe the market is buoyant while 22 per cent believe it is set to grow further. A mere five per cent believe it will decline.
Graham Bird, director of interim management at Chiumento comments: ìTougher economic conditions mean that organisations are increasingly turning to more flexible resourcing solutions as a way of remaining competitive without having to rely on permanent staff. The research indicates that half of organisations would struggle to survive if they didnít use interim managers, proof that they are an integral part of modern resourcing.î
A further reason for buoyancy in the interim market is that almost two-thirds (64 per cent) of interims believe that organisations are now so lean that theyíve lost key skills and talent. Despite this, 78 per cent of interims believe that organisations are still not doing enough to harness the skills and knowledge of the interim, a rise of five per cent on 2007.
Continues Graham Bird: ìWith the use of interims becoming more commonplace, it is concerning that organisations are still failing to leverage the full skills and experience of interim managers, and are also still failing to measure the return on their investment. With a third of HR interims and half of finance interims commanding between 551 and 700 a day, this does not make business sense.î
In order to measure ROI, Chiumento recommends a number of steps for organisations to take. Firstly, ensure there is a clear business case for using an interim manager. Discuss and agree objectives with the interim prior to the assignment starting which will allow clients to monitor performance against these objectives. Finally, have an end of assignment evaluation and allow time at the end of the assignment to ensure knowledge is transferred from the interim to the client.
Concludes Graham Bird: ìIt may be difficult for clients to plan and measure ROI when an interim is brought in to deal with a crisis. However, when interims are used strategically, organisations are in a better position to measure the benefits of this type of solution.î
Organisations fail to measure the ROI of interims
ñ but the market for interims stays buoyant as economy slows
