Compared to the previous quarter, Q3 saw the volume of assignments taken by our interim business increase substantially. However, there are several good reasons for this reports Digby Morgan’s Gordon Whyte.

Although this significant rise in assignments should be seen as a good indication of the beginning of an upturn, it must also be tempered with the fact that not only were we coming off an especially low base earlier in the year, but we’ve been particularly busy developing new markets.

Over the last year Digby Morgan has taken the opportunity to use ‘quieter’ times, when our established, long standing clients have not been actively hiring, to build relationships in new markets. As a result, our client base has broadened to include sectors that have remained active and require specific experience such as:

• Local authorities – many who are going through HR transformational change or merging with NHS PCTs
• The NHS – supporting trusts implementing new operating models and mergers and the development of leadership and talent programmes
• The telecommunications sector - undergoing consolidation resulting in the need for HR change managers to facilitate integration projects
• The maturing media markets - facing ongoing change resulting from new competition driven by advances in new technology
• The regulatory bodies - the redesign and rationalisation of niche market players driven by the demand for improved performance
• The insurance and pharma sectors – also being driven by ongoing market consolidation and global re-branding exercises
• The utilities sector – as it continues to face difficult industrial relations issues

As ever the common denominator in the interim HR market is supporting organisations through periods of change and this continues to drive our business both in our existing client base as well as in the new market sectors we have been developing.

What is happening to rates of pay in interim management?

The first half of 2009 saw rates fall dramatically. The lower end of the market dropped by £50-100 per day and, at the higher end, we saw individuals accepting offers £100-200 a day less than they would have in the prior two years. We feel that the lower end of the market had been over-inflated and that the operational HR generalist market has now ‘righted’ itself and clients are being asked to pay rates that are more in line with interims levels of skills and experience.

We now feel that rates have stopped dropping where strong candidates are beginning to have the opportunity to consider multiple roles and clients are occasionally having offers rejected. Whilst the increase in assignments would suggest that there may be more competition for candidates, this increase is gradual and we are not yet seeing rates rise – we’re experiencing a period of rationalisation and stabilisation.

Are organisations still keen to take on interims?

The short answer is ‘yes’. We feel the increase in the number of assignments is being driven by the client’s desire to use interims for several reasons. Firstly, it reduces any risk associated with committing to the cost of a permanent hire in what are still challenging times. It also makes economic sense when looking to implement specific projects rather than a full-time permanent salary. Finally, there is still an ongoing demand to implement cost reduction programmes that require HR professionals with specific skill sets. Experience and skills that organisations might not have in their incumbent team to, for instance, reduce employer head count cost through efficient redundancy programmes or to drive performance of existing populations.

Key skills in demand

Without a doubt, there is still a strong demand for professional employee relations skills in order to handle ongoing redundancy programmes and their resulting grievances. We’re also experiencing an increasing demand for HR interim managers to have formal project management methodology training and qualifications under their belt.

As ever a common theme is still ‘change’. Clients are looking to mitigate the risk that interim managers will deliver on a change programme through the comfort that a structured approach is being adopted. Additionally, as clients undergo periods of change, they are often seeking to bring on board cost effective organisational design specialists in order to help structure their businesses for the future.

The reward market has traditionally been one of the most resilient in the HR interim market and we are seeing this beginning to return to its ‘normal’ state where we are seeing the majority of our reward specialist candidates securing assignments.


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