Latest News - Demand For Interims Increases
Sunday Mar 22
And Day rates reach new highs
Changing business environments means a change in management focus and a change in the focus of interim management recruiters.
Day rates for interims have reached historical highs, according to a survey, as a treacherous trading environment means companies are prepared to increase pay for top talent.
Research by interim management recruiter Russam GMS found the average day rate increased from £603 to £612 from June to December 2008.
Charles Russam, chairman of Russam GMS, told Recruiter: “For the last three surveys [which are completed every six months], we have had recordbreaking figures.”
However, other recruiters have suggested that day rates have remained stable.
Anne Beitel, managing director at Executives Online, told Recruiter the average day rate had held steady at £750, adding that the company had experienced “no downward pressure” from its clients.
In the finance sector, rates fell from £607 to £583 over the past six months, according to the Russam survey. However, according to recruiters, demand for personnel has remained level.
Doug Baird, managing director of Interim Partners, told Recruiter that demand has increased in the financial sector over the past six months, because the sector was affected by the downturn first and began to make internal changes accordingly.
The biggest increase in average day rate was in the production and engineering sector, which increased by 9.9% from 471 to 581. Day rates in human resources increased by 7%.
The demand for interim managers with turnaround skills has also increased (recruiter.co.uk, 22 January). Russam said: “There’s been a shift in the skills which are needed. Up to June last year, interim managers were needed to help businesses deal with increased demand in sectors such as engineering. Now it’s about turnaround, restructuring and resizing.”
Executives Online recorded a 25% increase for roles requiring turnaround and business transformation in the last six months of 2008 compared to the same period a year ago.
The public sector has maintained a strong demand, with 56% of interim managers on assignment working in the local and central government and education sectors, according to the study.
Russam said: “The government is increasingly recognising the benefits of interims and is beginning to prefer them to consultants, as they have more of a practical edge,” adding that pay rates for comparable positions are around 25% lower than the private sector.
International demand for interim work has also increased. Executives Online’s Beitel told Recruiter: “There’s a strong demand for interims internationally. We think it’s a symptom of the [economic] climate and companies capitalising on regions which are in demand.”
The number of placements made in sales and marketing has increased as businesses concentrate on the core function of their business.
Beitel said: “Clients are increasing their focus on sales and marketing directors. There’s optimism in a difficult climate; people are trying to get close to their customers.”
Source: The Recruiter - 18 Feb 2009
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