Our CEO, Peter Križan, gave an extensive interview for TREND.sk. In it, he introduced Interim Management and our brand TOP HEADS, through which we are building the largest project of its kind in the CEE region.
If you are a TREND.sk subscriber, you can find the article HERE (Slovak version). If not, click HERE and you can read it.
Thanks to TREND for the opportunity.
EN translation below:
Managers for Rent: They Come, Identify, Solve, Leave
Companies can rent knowledge just like they rent cars and offices. Rental managers are a new reality. Sudden situations in a company, crises, growth, departure of a key person, but also maternity leave replacements, solving team problems, or transitioning to new software. These are all situations where companies need temporary help. Peter Križan, CEO of Personality Headhunters & Recruiters, explains why they launched the TOP HEADS Interim Manager Provider and that Slovak entrepreneurs can opt for renting managers in addition to the usual selection process. Internationally, it’s a relatively well-known product that is gradually making its mark here as well. For companies, this means a competitive advantage, especially when there is a shortage of experienced people or they need to act quickly.
We constantly hear about a shortage of workers nowadays.
It’s a common opinion in the market. In reality, there are people available, but usually, employers who haven’t been building the right corporate environment to attract and retain them face shortages. Good people are here, in my opinion, but they are much harder to find. Compared to abroad, our labor market is still quite favorable.
Is it even harder to find employees abroad?
Yes, which is why labor migration occurs. It’s a common phenomenon, and foreign companies offer managers from other countries better pay and often better social conditions. They bring global know-how and experience to the local market.
Is there an increased demand for a specific type of employee in the market?
Since we focus on managerial positions, people with specialized knowledge or skills who are also leaders are particularly lacking. They need to have the ability to motivate and attract people, be professional, and empathetic. This shortage exists across all managerial categories even abroad.
So not all managers are the same?
Definitely not, there are several types. Some managers personally manage between two and twelve people. These can be leaders in manufacturing, managing the production of daily use items, service workers, trade, marketing, IT; it’s the majority of team leadership and managerial positions. Then there are performance-oriented managers in higher management, with clear responsibilities and goals. Above them are top managers who indirectly manage teams of 500 or more people and are responsible for visions and strategies. However, there’s a special category – rental managers.
We’ll get to that. For now, I’m interested in what companies should do to attract those ideal managers.
The answer lies in corporate culture, employer branding combined with the challenge the job brings. This doesn’t just apply to large companies but also to startups and smaller companies. It doesn’t have to be anything groundbreaking. Employer branding includes customer service or corporate spaces. Candidates learn about corporate culture from how company representatives communicate with them during interviews. New employees sense it in the first few days at work, understanding the atmosphere in the company and how everyone communicates with each other. It’s many small things that together create a company’s attractiveness in the labor market.
It sounds quite simple.
That’s because it’s the first phase. The second step for companies must be working with employees, meaning the ability to retain them. They should create an environment where people have some autonomy, the opportunity to influence corporate events, and the chance to develop. In such a case, work will make sense to them, and this applies not only to large companies.
So building employer branding is not just a way to attract an employee but also to retain them.
Yes, but regarding retention, it shouldn’t just be empty advertising; it must be factual. The company must truly live by what it declares.
Do our entrepreneurs realize the need to build an employee brand?
They do, and they actively try to do something about it. Foreign companies, who have more experience in this area, serve as a model. As we cooperate with small and medium-sized businesses, including family-run types, the founders, family members, or leading workers are the strongest brand aspect here. Companies are presenting themselves more publicly now.
Can this strategy eliminate employee turnover?
A certain degree of turnover is natural, even when companies have all processes set correctly. However, there’s an assumption that in case of need, the team can be replenished and remain productive.
You mentioned rental managers. When should their use be considered?
There are four main reasons. The company is either rapidly declining or growing. It has a new project, is launching new production, or implementing new software. It needs a quick replacement for a key person, or it’s a startup. These are time-limited problems, for which it’s unnecessary to hire a permanent employee. The company only needs an expert for a certain period, and quickly.
Can they temporarily replace a missing employee?
Yes. When filling mid- and high-level positions, we provide temporary staffing with rental managers. This ensures that crucial activities aren’t disrupted. For example, if a key person resigns and needs to be temporarily replaced quickly. It can also be due to unpleasant situations like illness or injury, or maternity leave replacements. Startups often use rental managers due to a lack of experience.
Presumably due to a lack of experience.
Usually, they need to learn a new skill or knowledge, which they might need to change in six months or a year as they expand to a new market, for instance. In such cases, it’s unnecessary to permanently fill the position. A rental manager can come into the company, identify the problem, solve it, transfer the knowledge, and leave within the agreed time. Specific cooperation conditions are always defined in a contract.
Can a rental manager be the answer to a long-term shortage of employees?
It’s more of a solution to sudden problems. If a problematic situation persists in the company, they can hire a manager to solve it and change the situation. A rental manager is not a fix-all for every problem. It must be understood that there are no short-term solutions for long-term problems. A company can’t expect someone to come in and solve a decade-long problem in six months. It takes time. However, since we have performance-oriented people, we solve problems quickly.
What can be expected from such cooperation?
The company can achieve goals it previously couldn’t, perhaps due to a lack of managerial capacity, and can streamline processes. To facilitate this, we offer initial free consultations where companies can clarify their needs, the financial investment required, and the time needed. We consider these free initial consultations as market education, which is why we do it for companies without any obligation. The decision is up to them.
So, this service is not common in Slovakia?
It’s uncommon throughout Central Europe since many entrepreneurs’ mindset involves not admitting to mistakes and shortcomings, thereby depriving themselves. If they admit them and start discussing them, for instance, with a third party, they can resolve and learn from them.
How long has the manager rental service been operational?
In Europe, since the 1970s. In the Netherlands, companies needed to react more quickly to the labor market, so this flexible form of cooperation with managers became the new standard. Gradually, this form spread further, for example, to Germany, where the market is very strong. I think we were the first to launch this service in Slovakia, renting the first manager in 2014. I remember who it was and for whom. It was also because the client didn’t pay the invoices, and so we quickly learned. Even before the pandemic, people began getting used to shared things like cars, scooters, apartments, and offices. Similarly, people and their knowledge should also be shared. I’m not talking about transferring core information between competing companies but about knowledge and skills that are transferable between companies, such as team management, strategy creation, and innovation.
Do you expect the demand for this service to grow in Central Europe?
Absolutely. Companies realize that it’s a competitive advantage. For a reasonable price, they can rent an experienced person who brings global know-how without having to work in the company five days a week. These are performance-oriented individuals paid for the number of days worked. Therefore, a company can arrange an individual form of cooperation, even with a smaller budget. Monthly, we provide clients with over 20 rental managers who manage companies, help them grow, or set key processes. The demand is such that our goal is to reach 80 people monthly by the end of 2023.
Who are rental managers?
Given our database of over 600 verified rental managers, we have a pretty clear profile. To summarize, these are people at least 40 years old, fluent in at least one foreign language, with a minimum of five years of experience in managing people or projects, who enjoy challenges and are not afraid. Besides having specialized knowledge in a specific area, they communicate very well. This is essential as their job is to solve unpleasant situations in a foreign company within a certain time.
So, speed is also a key factor.
Exactly. When someone needs help, they don’t have time. That’s why we continuously build the Top Heads database to react quickly and always have someone available to start, for example, in three days, which is impossible in the usual process.
Are there Slovaks among them?
Yes, but 90 percent of them have experience from abroad or a foreign company. Not everyone can be a rental manager. It requires certain predispositions and considerable work experience. It’s a risky work environment characterized by an unstable income, regular changes in teams, high responsibility for the work done, high work engagement, extensive travel, and irregular working hours.
What concerns do companies have when it comes to rental managers?
Primarily, they’re interested in the cost of the service and the manager. In Slovakia, it’s more common for companies to ask for a free consultation where we clarify the type of service needed, the time it will take, and the budget. We see this as market education, and the decision is up to them. Additionally, people often worry if the rental manager will be a good fit, and sometimes the company wants to be assured that the manager has the required skills and experience. We provide detailed profiles and background checks to alleviate these concerns.
Are they not afraid that it will be expensive?
I always tell them to calculate how much it will cost them if they don’t solve the problem. How much will it cost them if certain work is not done well, if they have to constantly conduct selection processes? In my opinion, that is expensive compared to hiring a manager whom you can pay for a specific number of days.
What should companies not forget when working with such a manager?
Agree on a goal and clearly communicate it within the company. Employees must know who and why someone has come to the company. This will alleviate, for example, their fears of being replaced and will create conditions for the interim manager, who needs to collaborate with the employees. Without this, it won’t work.