8% drop in activity in Interim Management and gender pay gap widens
8% drop in activity in Interim Management and gender pay gap widens - new research from Russam GMS
- Market confidence faltered after Comprehensive Spending Review -
-Public Sector demand drops significantly
- Recovery in Finance sector -
-Earnings gap between men and women widens
The Interim Management market experienced an 8% drop in demand over the past six months, according a snap shot survey of 12,500 Interim Managers from award-wining Interim Management Provider, Russam GMS.
However, in spite of a fall in activity levels, the average daily pay for Interim Managers rose from 592 in June to 613 in December. Interim Managers working part time also received a 6% boost in pay, with their rates rising from 568 in June to 601 in December.
The market decline reverses the 11% upturn in activity recorded in June 2010, and two previous periods of decline recorded from 2008, when the recession was gathering pace.
Charles Russam, Chairman of Russam GMS says, The Interim Management market was boosted temporarily in June 2010 with the election of the coalition government and widespread reports that the recession was over. But, the Comprehensive Spending Review in July and slow recovery has impacted the market, reducing confidence and demand. Our research shows that daily rates have increased over this period but we think this is because clients are hiring more General Managers as opposed to less senior managers during these uncertain times.
Demand for Interim Managers in the public sector dropped significantly. Our research indicates that volumes have dropped by up to 50% in some areas. But this is still a volatile market and the results could be knee jerk reactions from Clients to the Spending cuts. We hope things will settle down and we will soon have more evidence about what is going on in this market.
On a positive note, there was an upturn in demand for Interim Managers in the banking, financial services and insurance sectors where early indications point to a 15% increase in volumes. Sectors such as Engineering and Manufacturing also remained strong.
Interim Managers in banking, financial services and insurance sectors also saw their pay rise in some areas as much as 14%, taking the average daily rate from 651 a day to 744. Pay rates rose also for Interims in Professional services, FMCG, the food industry and the leisure and hospitality industries.
In the charities not for profit sector, demand fell over the six months and pay levels dropped by 6% from 460 to 431 a day. However, Russam GMSs charity business bucked the general trends by recording a 37% rise in the number of assignments over this period.
The average age of Interims has increased from 53 to 54 (55 for men and 50 for women). Half of all Interims were in their 50s, 27% in their 60s and just 2% in their 20s and 30s.
But it was Interim Managers in their 40s who were the most highly paid at 634 day and won more assignments than any other age group.
On a disappointing note, the gender pay gap in Interim Management appears to have widened. Women were paid 10% less than men over the past six months, a figure which rose from 7% in January 2010. However, women are still better at winning assignments than men. Something approaching 20% of the registered Interim Management community are women, but at least 25% of assignments are handled by women.
And, there is no change in the number of Interim Managers who are committed to working as Interims. 28% of Interim Managers wouldnt consider a permanent role and around half (49%) said they would take a full time job if the offer was tempting enough.
Charles Russam, Chairman of Russam GMS said, The Spending Review has affected market confidence clearly with far fewer opportunities in local government, the NHS and education. Interim Managers who specialise in public sector work will face tough challenges this year. They will need to think about their transferrable skills, how to reposition themselves and establish new networks to find opportunities in other sectors it is not going to be easy.
One real disappointment is that women are being paid 10% less than men and the gender pay gap seems to be widening. However, we think this is because a greater proportion of women than men specialise in HR, finance and marketing and are on assignment in the charity and not for profit sector, which pays less than the public and private sectors. It is interestingly that Interims seems to be getting older, with half of all Interims being over 50 years old. Interim Management is an industry where experience counts for everything and we work with all our Interims whatever their age to ensure they have the most up to date skills and experience that will ensure assignment success.