Paul Boughton
Pay rates for engineers working as Interim Manager’s daily rates rose by 9 per cent in the period from June - December 2008, according to the latest Snapshot market survey of 9000 Interim Managers from Interim Provider, Russam GMS.
Daily rates rose from £417 in June to £518 in December. But, Russam GMS cautions that this could be because daily rates are agreed at the start of Interim assignments and the market slowdown has not yet impacted daily rates.
The survey shows also an 11 per cent drop in the volume of Interim Management work - the first slowdown recorded since the Russam GMS Snapshot Surveys started in 2000.
Interims specialising in IT commanded the highest daily rates – an average of £697 a day, closely followed by general managers on £669, with Interims working in HR and purchasing and distribution being paid on average £597 per day.
Unsurprisingly, Interims working in the financial sector have seen their daily rate drop by 4 per cent from £607 in June 2008 to £583 in December.
However, for the first time ever, Interim Managers working overseas are earning considerably more than their UK counterparts – an average of £707 a day, though this is a fairly small sample.
Commenting on the findings, Charles Russam founder and Chairman of Russam GMS, says: “This is the third recession that Russam GMS has lived through. The slowdown in the number of assignments is probably an accurate reflection of the market right now and, unfortunately, no surprise. It is however, encouraging that there remains a strong demand for Interims in many sectors including central and local government, the NHS, education and in the not for profit sectors in particular.”
Interims in their 20s and 30s appear to be losing assignments to Interims in their 40s and 50s. 65% of them were on assignment in June 2008 but this had fallen to 48 per cent by December. Interims in their 60s also saw a drop in the number of assignments they handled with 46 per cent working in June and just 37 per cent on assignment in December. However, over half – 52 per cent - of all Interims in their forties were on assignment at 31st December.
Russam believes this has nothing to do with ageism. He says: “When times are good and demand increases the engagement net spreads wider and when the market contracts, it’s all to do with competition and perceived merit. Our advice to all Interims is to keep skills up to date, stay sharp, restless and look the part at all times - there is no reason why older Interims should not play the same game.”
Interestingly, there was also a shift in the way Interims saw their careers. There was a 4 per cent rise in the number of Interims willing to consider a return to permanent work in search of greater job security.
There was also a 2 per cent rise in the number of Interims willing to move between Interim and permanent work. But, there was still only about 15 per cent who were actively looking for a permanent job or hoping their interim assignment would turn permanent.
Russam says, “With fewer assignments, there will be tougher competition for jobs in 2009 and it is inevitable that daily rates will be squeezed but “a fair rate for a good job” has always been our creed and our advice to all Interims has been NOT to work for less than a fair rate. Given the uncertain outlook, it is unsurprising that a greater number of Interims stated they would consider moving to permanent jobs for greater job security – presumable taking the view that there is greater security in permanent employment and that they will be able to find the jobs.”
Another trend was the drop in the number of assignments being sourced through Providers. Russam comments, “Providers like us need to develop excellent client relationships, because with more Interims on the market, they will relied on less to find Interim talent. We also believe there will be new opportunities emerging out of the recession. While we cannot predict how the market will turn out this year, we know that projects still need to continue. Our experience has shown that businesses will see Interim Managers as a highly flexible, cost effective resource particularly when if they don’t have the budget for permanent hires.”
Charles Russam also believes that this recession, as none before, will highlight the fundamental differences between stereotypical employees and the best Interim Managers.
He concludes: “Employees often talk about rights, legal obligations, stress, work-life balance and are rarely quick to relate their pay to the actual value to their organisation. The best Interims don’t talk much about these issues; their thoughts are about competing, winning, delivering results, providing value for money and proving their worth. This is why, in the serious challenges that now lie ahead of us all, the best Interim Managers are going to be glad that they are Interims. And so are their clients.”
For more information, visit www.russam-gms.co.uk
Daily rates rose from £417 in June to £518 in December. But, Russam GMS cautions that this could be because daily rates are agreed at the start of Interim assignments and the market slowdown has not yet impacted daily rates.
The survey shows also an 11 per cent drop in the volume of Interim Management work - the first slowdown recorded since the Russam GMS Snapshot Surveys started in 2000.
Interims specialising in IT commanded the highest daily rates – an average of £697 a day, closely followed by general managers on £669, with Interims working in HR and purchasing and distribution being paid on average £597 per day.
Unsurprisingly, Interims working in the financial sector have seen their daily rate drop by 4 per cent from £607 in June 2008 to £583 in December.
However, for the first time ever, Interim Managers working overseas are earning considerably more than their UK counterparts – an average of £707 a day, though this is a fairly small sample.
Commenting on the findings, Charles Russam founder and Chairman of Russam GMS, says: “This is the third recession that Russam GMS has lived through. The slowdown in the number of assignments is probably an accurate reflection of the market right now and, unfortunately, no surprise. It is however, encouraging that there remains a strong demand for Interims in many sectors including central and local government, the NHS, education and in the not for profit sectors in particular.”
Interims in their 20s and 30s appear to be losing assignments to Interims in their 40s and 50s. 65% of them were on assignment in June 2008 but this had fallen to 48 per cent by December. Interims in their 60s also saw a drop in the number of assignments they handled with 46 per cent working in June and just 37 per cent on assignment in December. However, over half – 52 per cent - of all Interims in their forties were on assignment at 31st December.
Russam believes this has nothing to do with ageism. He says: “When times are good and demand increases the engagement net spreads wider and when the market contracts, it’s all to do with competition and perceived merit. Our advice to all Interims is to keep skills up to date, stay sharp, restless and look the part at all times - there is no reason why older Interims should not play the same game.”
Interestingly, there was also a shift in the way Interims saw their careers. There was a 4 per cent rise in the number of Interims willing to consider a return to permanent work in search of greater job security.
There was also a 2 per cent rise in the number of Interims willing to move between Interim and permanent work. But, there was still only about 15 per cent who were actively looking for a permanent job or hoping their interim assignment would turn permanent.
Russam says, “With fewer assignments, there will be tougher competition for jobs in 2009 and it is inevitable that daily rates will be squeezed but “a fair rate for a good job” has always been our creed and our advice to all Interims has been NOT to work for less than a fair rate. Given the uncertain outlook, it is unsurprising that a greater number of Interims stated they would consider moving to permanent jobs for greater job security – presumable taking the view that there is greater security in permanent employment and that they will be able to find the jobs.”
Another trend was the drop in the number of assignments being sourced through Providers. Russam comments, “Providers like us need to develop excellent client relationships, because with more Interims on the market, they will relied on less to find Interim talent. We also believe there will be new opportunities emerging out of the recession. While we cannot predict how the market will turn out this year, we know that projects still need to continue. Our experience has shown that businesses will see Interim Managers as a highly flexible, cost effective resource particularly when if they don’t have the budget for permanent hires.”
Charles Russam also believes that this recession, as none before, will highlight the fundamental differences between stereotypical employees and the best Interim Managers.
He concludes: “Employees often talk about rights, legal obligations, stress, work-life balance and are rarely quick to relate their pay to the actual value to their organisation. The best Interims don’t talk much about these issues; their thoughts are about competing, winning, delivering results, providing value for money and proving their worth. This is why, in the serious challenges that now lie ahead of us all, the best Interim Managers are going to be glad that they are Interims. And so are their clients.”
For more information, visit www.russam-gms.co.uk
