At TOP HEADS, we were eagerly awaiting the results of the new survey of European interim managers, conducted annually by INIMA – the International Network of Interim Manager Associations. Today, we bring you a summary of the most important findings, but you can find the complete survey here.
European companies have found themselves in a situation where the traditional model of employing staff for all positions within a company is no longer sufficient or financially sustainable. More and more companies are discovering that independent professionals are a critical source of the necessary expertise. The reason is simple – the diversity and complexity of required skills are increasing, competition is becoming fiercer, and technological innovations (such as artificial intelligence) are transforming all sectors. There are few experts and specialists on the market, and it is often too costly for companies to employ them on a permanent basis. However, the advent of remote work and hybrid working models has opened new opportunities for acquiring expert skills. And as companies must keep pace with growing market demands, having access to the necessary expertise at the right time and “on-demand” has become essential. This is precisely what interim managers offer.
The typical interim manager in Europe is a man in his fifties, with 5-12 years of experience as an interim manager. The seniority of experience varied – Germany (10.3 years of experience), Switzerland (12.4 years), and the United Kingdom (11.4 years) are highly active and mature interim markets, while France (6 years), Portugal (6.8 years), and Spain (5.2 years) represent less active and less mature markets. The survey also recorded an increase in the average age of interim managers, reflecting a trend toward seeking more experienced professionals in the field. Participants in this survey transitioned from permanent employment to interim management at an average age of 48.
The number of women in the interim management segment is growing. In most markets, the percentage of female interim managers has remained stable or increased in recent years to a European average of 14%, though this is less than desirable. Poland (30%), France (20%), and the United Kingdom (20%) lead in the representation of women in interim roles, while the Czech Republic (8%), Italy (9%), Liechtenstein (8%), and Spain (5%) are significantly lower. The representation of women varies for several reasons. For example, in France, the employment of women in interim roles is supported by gender inclusion laws and demand in the human resources and finance sectors, where women are well-represented. In Poland, there is generally a higher proportion of female workers than in other countries, which also influences the representation of women in interim management.
The market for interim management remains strong. The average occupancy rate of European interim managers remains high, at 69%. The highest occupancy rates were in the Czech Republic (73%), Germany (70%), Italy (85%), and Switzerland (70%), while the lowest were in Spain (54%) and Liechtenstein (58%).
Overall, the growth of interim management over the past four years is very impressive. In Austria, the representation of interim management increased from 48% in 2020 to 67% in 2023. In other countries, the use of interim managers increased by an average of 14% compared to the 2020 survey.
Full-time interim projects, where the interim manager is 100% dedicated to one company, were the typical way of working in Northern Europe, while part-time projects were more common in Spain and Italy. According to survey data, Italy (52%) and Spain (38%) lead in the number of “part-time” interim projects, while in other markets the average is between 16% (France) and 27% (Austria). The reason is that most companies in Spain are small family businesses, which means two things – lower capacity to invest in projects and a more traditional culture. Interim managers must gain the trust of owners and demonstrate the added value they can bring to the company.
As for interim roles, top management positions prevail. According to the survey, an average of 30% of interim managers worked in top management positions. In functional management roles, interim managers were represented in sales (4.4%), operations (10.1%), IT (5.6%), HR (8.8%), and finance (11.4%). However, the survey also shows that market demands vary by country.
Interim managers generally hold executive positions. According to the survey, this category represents an average of 60% across markets: 35% directors or department heads, 21% CEOs or equivalent positions. Austria (37%) and the United Kingdom (46%) had the lowest representation of C-level interim managers, while Poland (77%) and Spain (75%) had the highest.
Very few industries or sectors in Europe are not dependent on interim managers. The top five sectors where European interim managers operate are manufacturing, industry, automotive, IT, and healthcare.
Interim management is attractive to companies of all sizes and types. 11% of companies using interim management services had over 10,000 employees. Companies with 100–1,000 employees most frequently used interim management services, accounting for 57% of all interim projects. However, even small companies with 10–50 employees used interim managers, accounting for 9% of interim projects.
The largest users of interim services were corporations (31%), followed by small and medium-sized enterprises (29%) and family businesses (22%). The survey also revealed interesting deviations – in Austria (37%) and the United Kingdom (28%), a significant percentage of interim managers worked in public sector organizations. In France, interim management found significant application in startups (21%), while in other markets, it was generally almost non-existent (0-5%).
The average duration of an interim project was relatively consistent – averaging 11.5 months, just under a year. The longest average project duration was in Switzerland (15.3 months) and Italy (14.7 months), while the shortest was in Austria (9.9 months) and Poland (10.5 months).
Among the most common tasks for which interim managers were called upon was change management. Process optimization, business development, and project management also made it into the top five.
As for how interim managers find interim projects, European clients continue to prefer professional services providers or personal relationships. Personal networks are the most effective, with 43% of projects initiated through existing client relationships or with the help of colleagues and personal networks. Companies providing interim management services account for an average of 32% of interim opportunities.
Daily rates for interim managers vary depending on the market. The European average is €999, with a slight increase (about 5%). The lowest daily rates are in Poland (€544), Spain (€618), the Czech Republic (€621), and Portugal (€628). The highest daily rates are in Switzerland (€1,504), Germany (€1,318), and Liechtenstein (€1,242).
The top priorities for this period include:
- Project Acquisition and Marketing: Improving visibility and increasing opportunities.
- Digitalization and Use of Artificial Intelligence: Developing experience with digital tools, artificial intelligence, and leveraging technologies like ChatGPT.
- Work-Life Balance: Balancing work, health, and stress management to ensure this balance.
- Crisis and Risk Management: Addressing economic instability, managing risks, and resolving supply chain issues while ensuring effective crisis solutions.
- Professional Development and Networking: Continuously educating oneself, expanding networks, and keeping up with current trends, such as digitalization and the use of artificial intelligence.
Source: Interim Management in Europe: Making Great Progress (Jon Younger)
