TOP HEADS connects professionals and experts with companies needing quick and effective solutions through Interim Management across the CEE region, thus keeping an eye on international developments and trends in Europe and globally.
Today, we bring you an article summarizing the results of the latest Interim Management survey in Europe (2023).
The survey was conducted by INIMA – the International Network of Interim Manager Associations, which carries out European market surveys annually.
Just as there isn’t a single way to work “freelance,” there isn’t just one type of “freelancer” professional either. On the contrary, there are more and more opportunities and possibilities to independently engage in projects either on a full-time or part-time basis. Freelance work is becoming increasingly common across many professional fields, and the rise in the use of Interim Managers is a significant example of this trend.
The term Interim Management is more prominent in Europe than in other regions due to stricter EU employment regulations, making Interim Management an easier choice for companies in European countries. However, we also see that Interim Management is growing worldwide. Pat Petitti (CEO of Catalant – a leading platform for independent consultants) noted that interest in interim positions has significantly increased over the past year, and assessed that the challenging labor market situation has led many companies to use interim services more frequently, viewing Interim Management as a helpful alternative that can be much more cost-effective and flexible, which is valuable during uncertain market conditions.
INIMA – the International Network of Interim Manager Associations – has published the results of the latest Interim Management survey in Europe. What do we learn from it?
Interim Management (IM) is stronger. The numbers are clear. More Interim Managers are actively working. Overall, compared to 55% two years ago and 67% last year, as many as 73% of Interim Managers reported being placed on a project in January 2023. The number of full-time and part-time projects has increased, with 26% of European Interims reporting a part-time project compared to 22% two years ago.
The position of IM is stronger across different companies and industries. IM clients are companies of various sizes operating in different sectors. From the size perspective, approximately 72% of companies had more than 100 employees, with smaller companies being more typical in Spain (57%) and Italy (58%). From the industry perspective, interest in IM was shown by companies in diverse sectors, including automotive, industrial, real estate, transportation, logistics, and services.
IM is growing at different rates in different markets. Full-time projects for a single company were a common form of collaboration in Northern Europe, while in Spain and Italy, part-time projects were more frequent.
IM is growing in all positions, but one position stands out above the rest. Change Management emerged as the clear champion, encompassing a broad spectrum of expertise. The greatest demand was for executives capable of managing and overseeing change: 55% of all IM projects were at the board level, CEO, or equivalent positions, or other leading executive roles.
The Typical Interim Manager. The typical Interim Manager is a man around 50 years old, who has been working as an Interim Manager for 5 to 10 years. IM thus continues to statistically represent a second career for middle-aged men, with overall female representation being only 11%. This fact is in interesting contrast to the higher percentage of female representation (35%) in the permanent employment sector in the region, suggesting that the representation of women in IM is likely to increase over time.
Most Interim Managers are busier than ever before. Definitely busier than last year. Generally, nearly 70% of Interim Managers were busy in Europe from January 2023, compared to 56% two years ago. The country where Interim Managers were the busiest was Germany – over 90%. The least busy were Interim Managers in Spain and Portugal – less than 50%.
Typical Professional Competence and Background. The largest representation of Interim Managers consists of professionals with managerial (C-level and board) experience (32%). In specialized areas, the most active Interim Managers were focused on finance and accounting (13%), operations (10%), HR (8%), IT (7%), and sales (7%).
Common Roles and Duration. Typical roles for Interim Managers in companies were at the management level – Board/Director/Executive (24%), C-level positions (31%), and Project or Program Manager (23%). The average project duration was just under one year. The longest projects were recorded in Italy, Spain, and Switzerland – all averaging more than one year (13 months). Shorter projects were carried out in larger industrial countries like France, Germany, and the UK.
Source of Opportunities. Half of the projects (47%) in Europe were obtained through personal networks and contacts. IM platforms and job portals covered the remaining third (32%) of open projects. It is important to note that IM job portals increased their reach by 12% compared to 2022.
Compensation. Interim Managers are generally well-compensated: the average daily rate is 950 EUR. However, compensation varies significantly between countries. The highest rates are in Switzerland, where the average daily rate is 1,450 EUR, and lower rates are found in less developed markets such as Portugal, Poland, and Spain, where the rate is around 550 EUR. Larger industrial companies tend to pay more – in the UK, Germany, France, and Austria, it is over 1,000 EUR per day.
Client Priorities. The biggest challenge facing IM clients is clearly Change Management. This category recorded the largest – up to threefold – number of responses compared to other categories. The leading priorities of clients thus include: process optimization, digital transformation, consulting, coaching, and restructuring.
What troubles Interim Managers. The problems faced by European Interim Managers are similar to those faced by freelancers in general.
Collaboration with job portals. IM job portals and platforms provide a significant percentage of interim opportunities, but many Interim Managers would prefer more direct opportunities. This could lead to interesting developments in the creation of specific IM portals and platforms and general job portals.
Workload management. Interim Managers desire an ideal mix of work opportunities and free time between assignments. Currently, Interim Managers have numerous opportunities to engage, and it is up to them to balance their work and free time between projects.
Realistic client expectations. Assignments often encounter a conflict between what is possible and what is expected. The success of an Interim Manager, or any freelancer in general, requires setting clear goals and expected outcomes.
Work-life balance. Successful Interim Managers face the challenge of maintaining a balance between work, continuous education, building client relationships, and time for family, friends, and personal life.
What are Interim Managers’ expectations for the future? Very optimistic. Approximately 80% are optimistic about their future and the future of IM. Only 11% expect more challenging times ahead.
Source: Interim Management In Europe: This Freelance Category Is Growing Strong! (Jon Younger)