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Interim management market slowdown over - Russam GMS

Wednesday 27th January 2010

By Mike Jones

The decline in the Interim Management market appears to be over, according to the latest six month snapshot of 11,000 Interim Managers from UK provider, Russam GMS.

Activity increased slightly by 0.9% over the past six months and this small increase is in big contrast to the 15% drop in market activity recorded in the 12 months from June 2008 to June 2009.

Also, in spite of speculation about Interim rates being squeezed downwards, pay remained stable. The average daily pay rate for Interim Managers across all sectors was £592 in December 2009, just a small decrease (1.5%) from £601 recorded in June 2008, and from the all-time high of £611 recorded in December 2008.

Part-time Interim managers saw their daily rate rise again in the last six months, from £602 in June 2009 to £616 in December, supporting the fact that many companies are working with Interims in a flexible, cost-effective way to suit their budgets or trying out Interims on a part-time basis before committing to longer-term contracts.

Finance specialists were in demand and, in the past six months, the number of finance Interims on assignments rose from 16% in June 2009 to 22% out of the total number of Interims on assignment in December. They also saw their pay jump by 8.8% from £532 in June to £597 in December. Other high earners included IT specialists who commanded an average of £649 a day, up from £641 in June and general managers who earn £635 a day.

In terms of sectors, Interim Mangers working in Telecoms saw their pay rise by 15% in the past year from £625 a day in December 2008 to £718 in December 2009. Other buoyant industries for Interims last year included FMCG, where Interims experienced a 16% pay rise and the food industry, where pay rose by 13%. Interims working in the retail sector saw a reversal of fortune, with pay rises of 5% in December 2009; this was in stark comparison to the 26% drop recorded in the six months to June 2009. These positive changes could indicate increased consumer spending and show that market recovery is on its way, albeit slowly.

Pay rates stood up well in the public and third sectors too, with very little changes in pay for Interim Managers working in central and local government and the charity and not for profit sectors. In contrast, Interims working in education saw their pay rise by 18% in the past 12 months from £544 a day in December 2009 to £642. Interims working in the NHS also saw their pay increase by 5% in the last six months to £598.

Charles Russam, Chairman of Russam GMS said: "These results suggest the slowdown in the Interim Management market is over and that things won’t get any worse.”

"Finance professionals are back out in the field helping streamline and position organisations financially for the future and we think these specialists will continue to be in demand this year, providing cost-effective and timely resource to help companies emerge from the recession.

"One area of major uncertainty is the public sector. Although pay rates are holding up for now and demand for Interims was strong over the past six months, we anticipate that planned Government spending cuts and the forthcoming election will impact the market, with projects potentially being frozen pre and post election."

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