Our CEO, Peter Križan, gave another interview on the topic of Interim Management for the TREND.sk portal. This time, the content focused more on crisis management, and if you are a TREND subscriber, you can find it here. If not, click on here to read it.
English translation of the interview below:
In good times, headhunting and recruitment operate in the HR market; during crises and complicated situations, Interim Management does. Age, hobbies, or manager loyalty are not important in this case.
The challenging times that companies worldwide have been experiencing for several years have strengthened the temporary manager rental market. In Slovakia, the company Personality Headhunters & Recruiters actively operates in this area. Peter Križan, its executive director, answered TREND’s questions.
Interim Managers step into the ring mainly in tough times. What are the prevailing reasons for their rental?
There are essentially only four main reasons to hire a rental manager. The first is when you need to quickly get a company or firm out of a crisis. The second reason is when you have a new project ahead or need to start a new service. The third reason is when you’re temporarily replacing someone who went on vacation, got sick, traveled, or resigned. And the fourth reason is when you’re, for example, a startup starting new things and need a completely new mindset and approach.
How does the Slovak labor market view Interim Management? Is it used?
I have been involved in Interim Management since 2014 and have actively tried to raise awareness about it. However, I noticed organic growth in demand for this service only from 2019. COVID accelerated this entire segment. It took some time for company owners and managers to understand that sharing experts and senior people is a normal part of business. Today, managers are quite flexible, offering their services to companies temporarily and being hired. On the companies’ side, it took longer for the market to be ready.
Do you see a difference in how the market behaved during COVID and the energy crisis?
In good times, headhunting and recruitment operate; during crises and complicated situations, Interim Management does. It’s logical since these two demand curves essentially always alternate. The exception was 2021 when both started to grow, which happened for the first time. Many companies are on a good wave, and their business is advancing. On the other hand, some companies are not doing as well. They were affected by energy prices, the economic situation in the market, supplier relationships related to the war, and perhaps even declining demand in the e-commerce market.
For short-term personnel outages, Interim Managers are hired for three to six months. What about in more serious situations?
Usually, these are contracts for six to twelve months, occasionally up to two years. The average contract length is six months, which in reality means eight to nine months because new ideas or challenges always arise during the collaboration that the Interim Manager begins to address, and thus the contract is usually extended by two to three months.
Can the engagement of an Interim Manager be planned in advance, or are these ad-hoc activities?
Personally, I don’t think it can be planned, certainly not in 85% of cases. If it could be planned, the company would have enough time to select a standard manager, agree on terms, and arrange a specific date and job. It can only be planned in the case of a family business when the founder knows that a generational change is coming or the family simply appoints a manager to temporarily lead the company for various reasons.
How are Interim Manager interviews different from when a company seeks a C-level manager for a permanent position?
If a company is hiring a C-level manager for a permanent position, they are interested in ten criteria. For Interim Management, it’s four main criteria, simplifying and speeding up the process. If you know it’s a collaboration for several months with a clear goal, things like attendance, distance, age, loyalty, or hobbies don’t concern you.
In reality, this means that after verifying the manager’s professional knowledge, a specific offer for the position or project can be made, and then as an agency, we verify the manager’s ability to solve the given task again. Then, the Interim Manager goes to introduce themselves to the company. Usually, the process has one, at most, two rounds.
To what extent is compatibility with the company culture considered, alongside expertise and experience?
Compatibility with the company culture is not key for a rental manager. What’s key is whether they, along with the company’s management or owner, view the questions of what needs to be done, why, with whom, and by when, similarly. In terms of personality, it’s important they possess directness, vision, specific know-how, the ability to argue, and clarity in expressions. An Interim Manager could also be a lone wolf who has an overview, know-how in the field, can communicate perfectly, and ensures agreed-upon matters are done.
One option is to rent an Interim Manager for a few hours a month for consultations. Who does this make sense for?
In these cases, you can, for example, talk, consult, or agree with the Interim Manager on the execution of what you have long struggled with in the company. For instance, if you want to verify that you are thinking strategically correctly or when it comes to highly specialized work that you need to carry out for only a short period, in such cases, an Interim Manager can function as an external financial director.
If an Interim Manager helps a company for a short time, who takes over the role after them?
It could be someone from the internal environment who knows the company long-term, has relationships, and knows the technologies, or it could be someone from outside but stable and for long-term cooperation. For dramatic changes, you usually need an external driving force. To make and sustain changes, you need internal people who will take over the company’s long-term vision. Continuity in the company after the Interim Manager’s mission ends is very important.
On your website, you have a humorous teaser that you help rent Elons. We probably know who you’re referring to. Could you realistically secure him as an Interim Manager?
On our website, we have not only Elon but also Mark and Warren. It’s more of an engaging hyperbole that there are people like Elon who don’t want standard employment, but companies can access their know-how and skills through rental. Such people are also around us – people with focus and reputation that when they start something, it’s successful. But yes, we wrote to Elon too, but he didn’t have time for us.
What are the compensation rates for Interim Managers?
Compensation is usually calculated as a sum per working day, i.e., eight to nine working hours. For example, if someone costs 400 euros per day, but the company’s budget is “only” 3,200 euros, they hire an Interim Manager for eight days a month, i.e., two days a week. Compared to a five-day working week, this may seem little, but one must consider that the engagement and initiative during those two days are on a completely different level than with a regular manager.
Which areas are in the highest demand in Slovakia?
The most requested positions are in marketing, human resources, sales, finance, and project management. Another category includes positions when the client requires a company takeover, needing a CEO or COO.
And where is it difficult to find a suitable Interim Manager?
If we are talking about the most challenging positions to fill, it’s, for example, the situation where someone has to take over a 20-year-old company built by its owner, and now the owner wants the manager to be like them. That is extremely complicated. If the client’s expectations are exaggerated or unrealistic, we must define precisely what the company and the owner need and why.
Where do you see the future of Interim Management?
I see it in the area of strategies. That will be the topic where business will be won. If a company does not have a good strategy, it will not keep up with its competitors and will end up failing.