BOYDEN PREDICTS INTERIM MANAGEMENT DEMAND
BOYDEN PREDICTS INTERIM MANAGEMENT DEMAND TO MAINTAIN MOMENTUM IN SECOND HALF OF 2010
Top global executive search firm finds organisations still want solutions without permanent commitment public sector and financial services remain most likely to hire interim professionals
Demand for UK interim managers in the second half of 2010 will remain strong as companies seek operational turnarounds and growth solutions, without committing to permanent hires, according to an announcement released today by Boyden global executive search and Boyden interim management.
We expect the demand for interim executives will remain robust for the rest of the year, though the high utilisation of public sector interims may reduce with the change of government and recent public sector spending cuts, said Patrique Habboo, Managing Partner at Boyden UK interim management. We expect hiring of interim talent in the public sector, financial services, manufacturing and other sectors to play an integral role as clients ensure their management teams remain fleet of foot and flexible during a time of economic transition.
Business cycles have shortened so much that permanent recruitment at the most senior levels often cannot cope with the speed of change, added Mr. Habboo. As companies react to global macroeconomic shifts, theres a tremendous advantage for organisations to turn to over qualified experts to help transform their business, bring fresh perspective and extra executive horsepower. Companies are still cautious about the economic recovery and hiring permanent executives.
In the UK, the Public Sector retained the highest level of interim managers at 21 percent, while Financial Services was second at nine percent and Industrial sector at seven percent, according to the Boyden interim management survey released earlier this year. General Management (16 percent), Finance (15 percent) and Human Resources (13 percent) functions were the leading titles of Interims on assignment in the Boyden survey of over 700 interim managers in nearly 100 organisations.
The Boyden interim management survey queried managers on the leadership qualities most often needed to reorganize and grow businesses. Most often interim professionals believed that organisations have too often been working at a strategic level to address changing economic circumstances rather than focusing on better procurement, lean production, enhanced marketing/business development or improved communication with customers. More than half of the interim managers surveyed explained companies response has been defensive rather than strategic and often unnecessarily puts business initiatives on hold, rather than investing for the upturn.
In the second half of 2010, the Public Sector is expected to continue to retain a high proportion of interims, though government budget cuts could have some effect on future hiring through 2010. However, new UK government decision makers may weigh the benefit of interims ability to get on with the job and produce results and save costs without getting bogged down in internal politics, according to Mr. Habboo.
Interim management is classified as the supply of executive level resource for a clearly defined period of time, with an average tenure of six months. For a copy of Boydens interim management survey please visit www.boydeninterim.co.uk.