Alice Venner, a senior consultant in Digby Morgan’s interim division, brings us up to date with just what Darwinian forces are at work in the current interim HR market.

Some commentators are likening the current market situation to that of evolution and, most notably, to evolution according to Charles Darwin. And, in the same way that Darwin’s theories were initially greeted with huge incredulity, the controversial and conflicting opinions of some of our most well known economic and financial figures have also attracted more than their fair share of headlines.

Conflicting opinions from companies and individuals with widely differing fiscal results or forecasts have become the new norm. What are we supposed to make of it all? And, rather more importantly, what on earth are we supposed to do about it?

Naturally, the interim market is not immune to this confusion and there is little to suggest that there is going to be a consistent return to the desired volume of demand for interim assistance anytime soon - and second guessing the ‘recovery date’ is impossible.

We can, however, comment on what we are seeing in the sector and this falls into three main areas.

Firstly, companies are still hiring. They are hiring directly through personal networks, through agencies and through direct campaigns. The challenges of directly recruiting are that of screening and assessing an abundance of applicants in a candidate rich market. At Digby Morgan we have an unparalled database of interviewed and assessed HR professionals that we use to reduce advert response to a manageable level to deliver a short-list.

The volume may have decreased but there is still money being spent and most definitely still a need for the flexible resourcing provided by interims. Back filling, good strong generalist roles with a strong bias to ER and roles supporting internal change remain the main areas with very little demand for Resourcing and Recruitment assistance. At last we have seen some requirement for Compensation and Benefits specialists and, given the continued media attention on [executive] remuneration, it would seem likely this will increase.

Secondly, increased cost sensitivity. Cost sensitivity increases demand for a flexible workforce and we’ve seen manufacturing companies reduce employees to three day weeks and offer unpaid time off but an interim is the monarch of flexibility. Organisations only need to pay for the skills they need, when they need them and so can optimise cash flow. Whilst the cash costs of an interim are often considered high this is largely as a result of their transparency compared to the lack of transparency in the costs of a permanent employee. Hiring an interim remains more economical than hiring a permanent employee, particularly if the demand for that particular skill set is likely to fluctuate.

There is no need to commit to an interim for the long term as a contract may be a matter of weeks; in fact we have seen a trend towards a reduction in initial contract length from the historic six months to around the three month mark, more in line with project requirements. Cost sensitivity increases the demand for interims to demonstrate their capabilities and sell their value for money. Appropriateness of price is reliant on the value (perceived or actual) of the product. Interims need to be clear on their ability to deliver and communicate this to the organisation. Likewise organisations need to be clear on their requirements so they can evaluate price in the context of the interim and the delivery requirements

Without a doubt, cost sensitivity increases the demand for interims. It creates reviews and assessments of all aspects of the organisation and the subsequent implementation of findings: prime interim fodder.

Thirdly, good interims are still in demand. Yes, it is a buyer’s market and yes there are lots of immediately available individuals around. But there are still only the same percentage of these who are right for each role and the ‘perfect’ candidate may still be as elusive as they’ve ever been. Interims that have a good CV, strong personal impact/relationship skills and can articulate their experiences and deliverables well are still getting more than one offer. This means that organisations need to speed their process through as efficiently as possible, ensure that all parties are engaged and, if they think an interim is right, offer them! An interim needs to make certain that their CV clearly shows their portfolio of capabilities and that they clearly articulate their deliverables and engage with the client at interview.

It would seem Darwinian forces are at play. Recessions are about redressing and rebalancing and ultimately about the survival of the fittest. Establishing fitness as a starting point and improving fitness [for purpose] are both still excellent reasons to hire an interim.


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