Interim Market Update

The Interim HR Market

Gordon Whyte, the Digby Morgan director responsible for running the interim side of the business, takes a look at the latest news and views from the interim world.

The long and short of it is that the interim market has rarely been so buoyant and we’ve experienced a massive 29% increase in the volume of client-briefed interim assignments over 2007. The most dramatic growth was in the first nine months of the year (39% up year on year). We have experienced some hesitation in the financial services markets resulting in some hiring decisions being delayed through September and October. However, there now appears to be a increased demand for interim candidates with clients seeking to secure individuals for early 2008. The strongest demand remains at the mid level for candidates earning permanent salary equivalents of £45-75K or day rates of between £250-500 per day. We’ve seen a 15% increase in the placement of candidates on a fixed term basis whilst there has been a 54% increase in those being engaged on a day rate basis. This is driven by client enthusiasm to hire on a day rate rather than taking interim staff onto their payroll. Certainly, in larger corporates and financial services organisations where a third party has been engaged to manage and source contract staff, the norm is to hire candidates on a day rate. In addition, we are seeing an increasing number of candidates who are specifically choosing an interim career rather than viewing the interim market as a 'stop gap' to a permanent job search. Certainly the majority of our clients demand shortlisted interim candidates to be focused solely on this market.

In Demand Skills

In especial demand are those with extensive design skills - to support business leaders creating effective structures to drive growth - and project and change management skills to facilitate structural change. Also in short supply are those with internal resourcing experience. In particular, experience in the management of complex supplier relationships and those with talent management and development skills as organisations appreciate the requirement to not only attract but also retain their aspiring and top teams. Additionally, companies are facing increased competition and, as they grow in terms of numbers, are recognising the need to either restructure or formalise some of their HR practices.

The growth of the private equity markets and the subsequent merger and acquisition activity in, for example, the retail online media markets, is also having a knock on effect in the HR world. However, with recent developments in credit markets there may be an increased need for private equity firms to actively manage businesses originally planned for rapid sale. This may create a need for these businesses to employ interim HR professionals at all levels to ensure a return on their investments through periods of business change.

Interim roles are no longer simply about 'filling a gap' in the standard organisational structure but, increasingly, about driving, facilitating or delivering key change programmes. A further notable trend has been a move away from the demand for VP level Business Partners to Director and MD level appointments to manage acquisition and HR and business transformation as well as the streamlining of processing. The financial services industry is also beginning to believe that HR skills are truly transferable and that HR professionals without the classical investment banking background can also have an enormous amount to contribute. They are taking a broader view as to the background of the interim and, as a result, benefiting from HR best practice gained from other complex and globally matrixed organisations and industries.