Strong demand for Interim Managers in UK Financial Services Sector despite market downturn reports

- 18% rise in Interim Job Assignments this quarter
- 3% rise in daily rates for Interims

The market for Interim Managers in the UK financial services sector remains healthy, with an 18% rise in the number of financial services assignments recorded by Interim Provider, Russam GMS since January 2008. This is in spite of reports from KPMG and the Recruitment & Employment Confederation (REC) of a recruitment slowdown and planned redundancies in the City.

Interims Managers are perhaps being hired by companies who are reluctant to recruit in the current market climate. According to a survey of 400 recruitment companies by Recruitment & Employment Confederation (REC) and KPMG in February, temporary and contract billings rose at the fastest pace for three months and employers are hiring fewer permanent staff for the first time since May 2003. The latest quarterly ëLabour Market Outlookí report from KPMG and the Chartered Institute of Personnel Development reported that almost two in five companies (38%) intend to make some employees redundant this quarter ñ a 17% increase on the autumn 2007 report.

According to the latest snapshot market survey of 8000 Interim Managers from Russam GMS conducted in December 2007, daily rates for Interim Managers in the financial services sector rose to 642 per day, a 3% increase on the same period the previous year. The sector is also paying above the average rate for Interim Managers, reported at 580 a day.

The growing market for Interims is linked to the fact that many city firms rely on Interim Managers in uncertain market conditions, as their costs can be managed and there are the not additional costs normally associated with recruiting permanent employees.

Dave Butler, head of financial services for Russam GMS comments, ìThere is no sign of a slow down in Interim Management market. In fact, we are experiencing the opposite, with an 18% rise in the number of assignments since the start of the year. Interims are an attractive proposition for businesses as they do not incur the overheads of permanent staff or hefty fees typically associated with Management Consultants. They slot easily into organisations, take on senior assignments at very short notice and deliver from day one, which is the key to success in the financial services market where the one constant is change.î

ìWe have also noted that more of our Interims are being hired for specific projects to drive change, carry out major business turnaround projects or to manage pre or post acquisition processes. In such ìbullî and ìbearî market conditions these senior Interims and in particular, the turnaround professionals, have become very popular. Whilst the market outlook may be looking shaky for the permanent recruitment market in 2008, we see no such signs in the interim management industry,î he concluded.