The interim market for HR professionals has exploded over the last couple of years with unprecedented levels of growth across all skill sets. But, is it going to last or are we looking at an imminent bursting of the interim bubble? Gordon Whyte, head of Digby Morgan’s interim subsidiary, HR Interims, reports from the front line.

“With a team of 12 consultants dedicated to interim HR recruitment I believe we’re a good barometer of the market. We have seen the volume of interim positions double over Q1 2007 in comparison to the same period in 2006.

“This is a classic ‘push and pull’ scenario with demand coming from both the client and candidate ends of the market. Clients, for example, are facing increasing demands to control costs whilst, simultaneously, maintaining and increasing flexibility in corporate and HR functions.

“The increase in the centralisation and outsourcing of HR functions has resulted in organisations running lean HR permanent teams. These teams are supplemented by a flexible interim workforce for specialised roles or key projects.

“So is this going to continue? To my mind, yes. As businesses mature and consolidate there will only be further rationalisation – witness the rumours that are rife at the moment with regard to potential mergers between large international financial services organisations.

“Demand is also being driven by the candidates themselves and their desire to pursue an interim as opposed to a permanent-based career. The rationalisation, centralisation, outsourcing and offshoring of corporate functions creates highly specialised permanent positions, but also roles that are often routine and transactional with limited opportunity to develop one’s career in more strategic areas. Interim roles offer more challenging, project-based work.

“Subsequently, strong, commercial and career-orientated candidates are enjoying seeing the results of being engaged on project based assignments and are voluntarily choosing to remove themselves from the permanent job market.

“Additionally, candidates who have graduated in the last decade appear to hold less fear of being out of work and are more confident when choosing an interim career. They’ve grown up in the strong economic climate of the late 90s and early 00s, been through the dotcom crashes and have developed a strong resilience to the lower level of security that comes with an interim career. Generally there is a more relaxed attitude toward the perceived risks of an interim career.

“So are we about to see the bubble burst? Absolutely not. For all the above reasons I’m convinced we’ll continue to see an increasing number of people at all levels considering an interim role as one that offers a genuine career path.

“In terms of reward, we’ve seen a 20% rise over the last year in the day rates of interim candidates. However, given the growing numbers entering the interim market, the competition for roles will increase and there’s a question mark over whether these rates will continue to rise at this pace. And, of course, the selection process will also toughen as clients place high levels of importance on the delivery of results from interim candidates and push to ensure they are getting value for money.”

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