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Interim Management Market focused on growth as volumes ease upwards

Interim Management Market focused on growth as volumes ease upwards

news is good for Interim Managers with the latest snap shot survey from award-winning, Interim Management provider Russam GMS showing that the market is stabilising and is now firmly focused on growth, with a greater number of organisations hiring interims to spearhead business and corporate development programmes.

The twice-yearly benchmark survey of Russam GMS’s 12,000 Interim Managers charted a 5% growth in activity from January to June 2012, which follows a 6% decline in the previous six months. These figures follow a similar pattern of activity recorded in the previous year (in June 2011 there was a 1.2% increase in activity followed by an 8% drop in December 2012), however, this year’s figures show a slight increase in volumes.  And whilst daily rates have dipped slightly from the previous six months from &pound621 to &pound617, they are up from &pound607 recorded in June 2011.

More notably is the move away from the traditional use of interims as & lsquo;gap fillers’. Half of all Interims are being recruited to provide specialist skills that are absent in their clients’ businesses 34% to implement new strategies, 33% to work on special projects and just over a quarter to lead business restructuring. Just 15% said they were covering a temporary absence or a sudden departure.

Interestingly, 17% of interims now see themselves as Change and Transformation specialists and this has emerged as a new professional discipline - the second largest category of interims after general managers (20%).

Charles Russam, Chairman of Russam GMS comments: “There is a positive mood in the market and a general view that volumes have started to increase.

Businesses are using Interims more strategically than ever - to plug skills gaps on a temporary basis, re-structure their business, to lead special projects, drive change programmes or lead business development.

Increasingly, companies are attracted by the immediacy and low risk interims offer and are using them to help grow and develop their business. This mirrors a general market trend towards the use of freelancers – according to The Professional Contractors Group – the freelance market has grown by 12% since 2008.”

The most assignments were in engineering and manufacturing with 12% of overall assignments followed by banking, financial and insurance at 10% and the charity and not-for-profit sector at 9%, whilst entertainment, hospitality and leisure (2%), education (3%) and local government (3%) had the least.

Interims in IT have seen the largest pay growth in the last six months, with rates up just over 8% from &pound645 to &pound669, but it is Change and Transformation specialists that now achieve the highest daily rate across all professional disciplines at &pound718.

Those working in the FMCG sector are the highest paid with daily rates at &pound853, up by over 25% from December 2011, followed by banking, finance and insurance at &pound701 per day, although this is down almost 5% from December 2011.

Unsurprisingly those working in the charity and not-for-profit sector are the least well paid at &pound458 per day, a decrease of almost 4% from December 2011, reflecting the cut backs the charity sector has had to make however, those working in the supply chain sector have seen their rates drop the furthest, down 27% from &pound654 to just &pound482.

The north south divide is still apparent with a 6.5% increase in pay in the south to &pound620, whilst pay in the north remains fairly static at &pound581. The West Country fared the worst with a 20% drop in daily rates. Those working overseas though achieve the highest daily rates overall at &pound718.

Age isn’t a barrier to Interim working with almost 80% of Interim Managers in their 50s and 60s. However, only 47% of those in their 50s and 34% of those in their 60s were on assignment at the time of the survey, compared with 59% of 40 year old interims.

Charles Russam, Chairman of Russam GMS comments: “Whilst pay hasn’t increased dramatically - in certain sectors Interims are being paid very well and overall the daily rates are an improvement on last year. 29% of Interims are now in their 60s, a trend we expect to continue as people have to work longer, although they don’t tend to achieve the same pay levels.”

Jason Atkinson, Managing Director, Russam Interim comments: “These figures mirror recent research from the Institute of Interim Management that also highlighted growth. It seems that the interim management market is recovering and demand for interims with specialist skills has increased particularly in the engineering, banking and charity sectors. The overseas market also looks very positive and we see this as a major area of growth which is why we recently launched Russam International.”

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