If there is one thing that we have all learned as a result of COVID-19 is that business changes are inevitable. The current market place is becoming more and more unpredictable, making it increasingly difficult for businesses to exercise their span of control effectively. Interim managers present a short-term solution for companies going through a rough patch.
Companies have struggled to stay ahead of the competition while generating growth and remaining relevant. For such reasons, firms must secure the services of talented managers or executives to spearhead the business in the right direction, while avoiding pitfalls.
A talented senior brings with them a wealth of resources, including experience and skills vital for a company’s success. Rightly the CEO controls about 45% of the company’s operations. However, winning the war for today’s top talent is critical and challenging, given the turbulent state of the economy and the market place. Just three out of every five newly appointed CEO’s live up to the performance requirements.
Not only that but in the current non-profit industry, 3 out of 4 executive directors are set to leave their jobs over the next five years. All these factors have led organizations today to shift away from the traditional permanent roles of top-level managers in favour of interim managers. But who are interim managers?
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An Interim Manager Defined
An interim manager is a top-level executive who is experienced and has a particular set of skills necessary for solving a specific problem in a very short period.
The word ‘interim’ is used to describe a brief or temporary period. In essence, an interim manager is a temporary executive who provides his/her exemplary services for a short time. This could range anywhere from 3 months to 9 months or as long as two years in the business world. Companies today are moving away from permanent executive job positions to interim executive positions (also known as C-level positions).
It is no secret that a company’s executives control a significant portion of an organization’s policies and activities. The best course of action for companies who have suddenly lost a senior top-level manager or are going through a transformation would be to seek the services of an interim manager. Why?
Newly appointed CEOs often struggle to make an impact. In fact, three out of every five recently hired CEOs fail to live up to their performance expectation in their first 18 months. So, tying down a new CEO or any executive for a long time might prove costly in the long run.
Interim executive managers are individuals with proven track records and a portfolio of similar assignments. These heavyweights are known for having the ability to make significant improvements in a very short time. Plus, their contract ends after a short while, allowing you enough time to look for your ideal candidate to fill the long-term position.
But hiring a provisional manager is often challenging as the process is time-consuming and tedious. For this reason, most companies opt to use the outsourcing services of top HR solution firms like Flexi Personnel.
Why are so Many Companies Looking for Interim Managers?
Over the last 30 years, the interim management industry has been growing by approximately 20% to 40% percent every year. Currently, the industry is valued at over $3 billion, with the USA leading the world with the highest number of interim management firms in the world. Additionally, a 2019 survey showed that digital leadership and interim management are expected to be the most in-demand search consulting service.
Not only that, but companies are ‘headhunting’ for interim executives in other parts of the world, including Africa. According to a survey, 57% of interim managers work with international companies overseas to provide services to the domestic market. Flexi Personnel is one of the best HR solutions firms in Africa that has worked with global clients looking to set up shop in the African Domestic market.
There is no denying the fact that interim management is an industry on the rise, with temporary managers at the heart of it. What led to this rapid change is the nature of the current market place.
The current marketplace is changing quickly. In 2020, the global pandemic that changed life as we know it had a serious effect on businesses. However, companies have to embrace change and move quickly to avoid experiencing losses. But finding an experienced executive to tire down for the long run is becoming harder with each passing year.
Besides, qualified managers are becoming scarce to find as many of these individuals are retiring every year. Not only that, but traditional recruitment methods are slow and have a high opportunity cost. As a result, many companies are looking for interim managers from third-party HR solution firms such as Flexi Personnel, who can quickly churn out a high calibre executive in a short time.
Benefits of Hiring an Interim Manager for Your Company
There are a ton of benefits that a company can realize by hiring a provisional manager. The following are some of the pros/advantages you can expect from hiring an interim manager.
- They Can Quickly Turn Around a Business from a Bad Situation
The main purpose behind the entire concept of a provisional manager is to quickly turn around a business from a ‘bad’ situation into a more favourable one. The business environment is prone to adverse conditions, also known as crises.
A business crisis is an event or factor that disrupts a given firm’s operation, putting it at significant risk of turmoil. Such crises often occur suddenly, putting the entire organization in jeopardy. They include the abrupt loss of an executive, natural disasters, terrorist attacks, and an outbreak of a disease.
The nature of a business crisis demands that decisions and actions have to be taken quickly. What makes temporary executives beneficial in such situations is that they have track records of performing and delivering results in similar roles. As a result, they can quickly turn around an unfavourable situation to one that is in line with organizational goals.
What’s even better about acting executives is that they are immediately operational. Depending on the project, they might take a few weeks or days to get settled and assess the situation. After that, they quickly hit the ground running and make recommendations as they implement them, swiftly turning around the situation.
2. To Provide Stability and Productivity During Change/Transition
Another critical role of a temporary director is to provide stability during transition periods or change within an organization. According to a report by Harvard, an executive’s departure proves to be disastrous for the organization, especially the employees. Additionally, it creates a ripple effect within the organization, affecting the overall morale of the employees, which in turn lowers their productivity.
What an interim manager’s role in the corporation is to bring about stability, which in turn improves the productivity of the employees. As they are leaders, they bring with them an enormous wealth of experience and resources necessary for ‘calming down’ employees.
In addition, research has shown that acting executives are able to connect with the current staff effectively. They fit seamlessly and have excellent social skills, and their presence can hardly impact the existing staff.
3. Interim Managers Have Great Project Management Skills
A provisional manager is not only good for filling an executive position but also for managing existing/future projects. Businesses worldwide engage in many projects with hopes of making them profitable. Because of their particular skill set and experience, temporary managers are also great at implementing such projects.
Project management is defined as the application of various techniques, processes, experience, and knowledge to accomplish specific project goals and objectives. A provisional director’s competencies exceed turnaround management as they are also capable of delivering project results.
Among the various projects a temporary executive is capable of delivering include;
- Strategy implementation
- Relocation of a company’s factory
- A start-up project
- Closing down of a branch or division
- Downsizing or restructuring
- Incorporation of new activities
With 55% of all short-term managers taking on C-level assignments, it would be best for an organization to consider employing a candidate with a proven track record to help with project management.
4. Interim Managers are Cost-Effective
Compared to the permanent C level individuals of an organization, acting managers are cost-effective. Interim executives only get paid for the days they work. Here, all the invoices are based on the fee per day spent working on the assignment.
Some firms work up to other extras like daily travel allowances and accommodation while others don’t. For instance, it is common for companies to discuss performance-related bonuses when recruiting interim managers. As a result, there aren’t many (if any at all) additional costs.
On the other hand, a permanent senior’s invoice takes into account the salary, social security, bonuses, medical covers, holidays, insurance, allowances, lay-off costs, securities/ stock options, among many other benefits. For such reasons, it is fair to say that the cost of a provisional manager compares favorably. Especially on a day-to-day basis.
5. They Offer Fresh Perspectives to Help with Strategic Operations
Since short-term managers are not considered part of a company’s long-term strategies and objectives, they are unburdened by its ‘politics’ and culture. As a result, they are able to work freely without having to worry about such influences. This gives them the room to focus on what’s best for the business.
Provisional managers come into the business with fresh perspectives, facilitating meaningful discussions with stakeholders. As a result, they help sort out any barriers that affect project implementation.
Should You Hire an Interim Manager?
There are a number of situations that will ultimately influence your decision to search for an interim executive manager. Besides, they have a ton of perks that your company could profit from. However, you should strongly consider hiring an interim manager when;
- You need to fill a managerial role temporarily quickly
- You are going through a transformation or a transitory business period
- A project is failing, and you need to get it moving in the right direction
- Starting a new project
- You require a specific set of skills for starting a new project or continuing the existing one
- You are going through an acquisition, mergers, or partnership
In Conclusion
The business landscape is continuously changing, with the COVID-19 in 2020 instilling hard lessons to most business owners worldwide. Whenever there is a need to instigate new strategies, turn things around, or fill a gap recently vacated, it would be best to consider hiring an interim executive.
The success of your business is dependent on your ability to secure an interim with a near-perfect understanding of your assignment’s requirements. You could decide to outsource for the ideal candidate yourself. However, the process is long and frustrating as it could take up to six months just to find one. And remember, time is of the essence. Many companies choose to seek the help of a third-party interim agency to aid in their search for the ideal candidate.
Are you looking for an interim manager? Flexi Personnel is one of Africa’s finest HR solutions firm with a proven track record of delivering high-caliber interim executives to organizations worldwide. With over 12 years’ experience in providing professional recruitment and employment solutions, you are guaranteed to secure management solutions.
In addition, Flexi Personnel has worked with major brands from all over the world which are looking to establish their presence in African countries such as Kenya and Rwanda. Over the years, we have established an immense database featuring top-level talent. All of whom have undergone vetting to ensure we maintain high standards.
Our vast talent pool means that you will have an enormous portfolio of high calibre candidates to choose from. Get in touch with us today at Flexi Personnel for this and more HR management solutions to help you achieve your goals.
