19 November 2009

Vast changes in the market for interims have led to growth in purchasing's responsibility for this area of recruitment. Here some suppliers offer advice on points to consider:

Gareth Elwin, director and procurement specialist at Morgan Law, www.morgan-law.com

Many organisations are currently taking a short-term approach when it comes to recruitment, opting for interims as opposed to permanent employees. It also means that businesses can take on skills which they need but don't have in-house for a short period (such as creating new departments, restructuring, redundancy programmes etc). Morgan Law is a specialist in placing interim careerists - people who are experienced/have specialist knowledge and enjoy the buzz of going from one interim contract to the next, meeting specific objectives in a short space of time. Now that so many people have been made redundant, the interim market is flooded with people who are happy to do interim work as they just want to be employed and cant find a permanent role. This influx of candidates is having a huge impact on the interim market - particularly in terms of driving down prices for the organisation wishing to take them on.

• Interim market is currently flooded with perm people and hugely competitive, as those who have not wanted to work on an interim basis previously are being forced into it, due to a lack of permanent positions. There are, certainly, still any number of specialist roles that are highly in demand, but the operative word is specialist.

• There is lots of competition over rates which are spiralling downwards. Clients' expectations of what they can get for certain salaries and rates are higher than ever. Huge financial pressures on the Public Sector which, twinned with re-structuring demands, means that everyone is under pressure.

• Clients need to be a little more aware that interim managers have specific skills that allow them to assimilate into organizations quickly and bring themselves up-to-speed. They will usually also know not to get involved in the politics of an organization and will often sit back and act as an external catalyst to change. These skills will most probably not have been developed by a permanent employee embarking on an interim role for the first time. Interim positions tend to fall into three categories: caretaker roles covering maternity leave, sick leave etc; specific project management roles with a defined timescale/delivery time; and crisis management/turnaround situation roles.

All this restructure and reorganisation does mean that good people are still very much in demand, especially those with the skills to manage change. It does not mean however that permanent staff with some experience of these specific skills can simply expect to move across with ease.

Tony Evans, Institute of Interim Management, www.ioim.org.uk

Dos

· Do treat it as a specialist supplier discussion when meeting a prospective interim - you need to view an interim as a specialist

· Do remember to view it as a commercial relationship not an employment relationship

· Do agree clear objectives on what you'd like the interim manager to achieve and ensure this is understood within the organisation as well as by the contracting parties and stakeholders.

· Do consider an interim as a return on investment, not as a tax on the business

· Do involve key decision makers and stakeholders in the appointment process

· Do perform basic background checks, are they independently accredited?

- Look at all of the elements that make up their career

- Can they deliver?

- Check they have done what they say they have done

- experienced delivery is everything

· Do allow your interim to shake things up - essentially they should be a loose cannon!

· Do be realistic on timescales - a good interim will be honest if these time scales are un-achievable

· Do give your interim space to deliver on objectives

· Do remember that you're appointing someone partly as a 'fresh pair of eyes'

· Do remember your interim will behave independently, they're not there as an employee to take management instructions

· Do remember that a good interim will have a significant influence on the direction of the company

· Do make sure the whole organisation is well briefed before appointing an interim

· Do consider professional accreditation of their interim status to be certain they aren't just after a permanent role

Don'ts

· Don't treat interim management as a permanent recruitment exercise

· Don't choose a shrinking violet who's just going to sit in the background and do nothing

· Don't try to be over prescriptive

· Don't choose an interim who you think is going to simply be a 'yes' man

· Don't be closed to feedback

· Don't appoint an interim without seeking their 'bon fides', including accreditation - ideally, make sure it's independent. If using an agency, ensure you get beyond the "we vet all our interims ourselves" statement - bear in mind that the provider does have a commercial interest. Independent accreditation can be verified if they are an Institute of Interim Management member.

· Don't dump your interim on the organisation without warning - you need to make your employees aware of the interim's role within the company. This will help the interim hit the ground running.

Pat Law, managing director at Hays Procurement, www.hays.co.uk/procurement

To reap the full benefits of hiring a procurement interim the employer will need to be very clear about the specific project requirements from the outset. There needs to be transparency and an honest dialogue beforehand so that the interim can hit the ground running without encountering unforeseen obstacles.

The organisation should ensure that the individual is welcomed into the organisation and that they have all the resources at their disposal to carry out their assignment. The interim will need to demonstrate a capacity to adapt to different company cultures, possess strong communication skills and must have a defined exit strategy in place to ensure that the transfer of knowledge takes place seamlessly.

Steve Dengel, director of BIE Interim Executive, www.bieinterim.co.uk

1. The starting point; identifying some providers for closer review

The best place to begin is via personal recommendations. Interims are now such a widely accepted and proven resourcing tool that many senior managers have some good, and occasionally bad experiences you can learn from. Ask colleagues and associates for a personal perspective on a potential supplier; word of mouth recommendations from trusted sources are an invaluable starting point. When an organisation needs to find a professional interim manager it's usually to meet an urgent requirement in an important, highly visible role. Under time pressure, it is always tempting to resort to Google and inevitably an internet search will be a mine of information. But beware, because although the majority of interim providers will make similar sounding claims, in reality they offer vastly different levels of experience, service and delivery. The following will help narrow your supplier search further to the point where you can be confident of making an informed choice.

2. Is the company a specialist interim provider? Beware executive search firms operating an interim 'sideline' service.

Interim executive management isn't just another branch of recruitment. The processes are different, the candidates are different and the outcome will be different. People seeking a permanent role rarely have the focus and pace that professional interims have, so be very careful if you're offered someone offering 'try before you buy' recruitment as an alternative to an interim. Most people between permanent jobs are unlikely to have experienced the pressures of successfully delivering against several previous interim assignments. A good interim executive cannot be made. They carry the appropriate 'over-qualified' skill set that allows them to deliver effectively over a short period of time. No induction period or close management is required.

3. Can the provider demonstrate a history of successfully placing interims within your type of company? Can they readily offer a wide range of high quality references of past assignments?

Interims, as well as interim providers, survive by their references so it is appropriate to delve into the history of the selected provider. How long has the company been an interim provider and what is their particular background? Have they worked in your industry before? What experience of previous functional placements has the provider got? Are they specialist within a particular field or can they 'add value' to your requirement by recommending transferable skill or sector alternatives?

4. What is the interim provider's business process and do they meet the client to understand and define the working brief?

Meeting the provider to take a 'face to face' brief is an essential part of the process in our view as it brings the two parties together in clear agreement of the interim profile, the timescale for delivery and ultimate cost.

5. Does the provider have a known and trusted portfolio of interim managers?

If they simply select candidates from a database then this is no more scientific than you advertising on a job search website. The major providers should have a process of pre-registration validation that allows them to act quickly and effectively when required. For an interim service provider, knowing its interims before presenting them for roles is a basic necessity to ensure clients get the correctly skilled and experienced candidate who has already been met and approved by the supplier. All interims look good on paper!

6. How big is the provider's database?

If it goes into tens of thousands then this is un-manageable. With a total universe of around 3,000 top-level, experienced interim executives practising in the UK, storing high numbers of CV's on a database can only complicate and cause inefficiencies in searching.

7. Does the provider present two or three pre-screened, 'hand picked' and recommended candidates for each role or do they just offer a long list of un-seen interims for your selection?

Ensure that the provider has completed the 'front end' screening and briefing that will allow you to have candidates presented to you in the shortest possible time - usually two to 10 days. The emphasis should be on relevance to the profile both in terms of skill set and personality, which is equally important. This cannot be judged over the phone or from a CV and is crucial in terms of achieving the right cultural fit.

8. Does the provider attend meetings between you and the interim?

This is a continuing part of the process and is where the provider can add real value. Their experience of the candidate and the role can be an important part in facilitating the discussions during the meeting and taking an active part in the 'wash up' conversations after the final meeting has concluded. It also allows the provider to offer 'real time' feedback to both the successful candidate in terms of the start of the role and also for coaching unsuccessful interims.

9. Once the interim is assigned does the provider walk away or retain an interest?

Experienced providers should add value by keeping in regular contact with the client and the interim and 'sign off' the project with an end of assignment audit from the client.

10. Does the provider offer full visibility to negotiations and invoicing?

Be wary of an 'all inclusive' invoice covering both the interim and providers rate combined as you can never be sure as to who is getting what. Ask for visibility and if the provider is reluctant to offer this then they must have something to hide. Follow these guidelines and you can be confident that your organisation will not only get the right person for the job at the best possible rate, but also a provider that offers real, added-value services instead of just an intermediary with a Rolodex.

Wayne Brophy, managing director, Cast UK, www.castuk.com

The Dos

Do make sure an interim is what you need

If you're thinking about hiring an interim, you will probably be looking for someone to manage change or someone neutral to resolve a turbulent situation. That's when an interim manager is preferable to someone already in the organisation. A good interim will carry out a rapid diagnosis and do what needs to be done without being drawn into office politics.

Do talk about your expectations

A potential interim will have just as many expectations as you, so it's important to be clear at the beginning what these are. Clarify what you need from your interim manager. Sometimes this will be simple if they're temporarily filling an existing role, but if they're undertaking a project, set targets and clearly identify what you expect them to achieve.

Do induct, incentivise and appraise

You'd be surprised how many organisations don't induct interims like any other new employee for fear of offending them, but a well-inducted interim will start to tackle issues sooner. Also, there's no reason why you shouldn't pay part of an interim manager's fees when certain milestones have been reached, for example when certain deliverables have been achieved. Appraise interims too and you'll both get more from the relationship.

Do use a professional recruitment provider

Well of course I'd say this, but a specialist recruitment firm will be able to tell you when suitable purchasing and supply chain professionals are available or are about to become available. A recruiter also knows where a good interim differs from a good permanent hire, and will take time to understand the precise nature of your project. Personality doesn't jump out on a CV, so you'll have to trust a recruiter to recognise the right attitudes. Remember to use a recruiter who specialises in your sector.

Do get their true opinion of the business

Because interims are detached from the organisation they can offer a level of expertise and objectivity that those at 'the coal face' often can't. If the situation is right, don't limit their expertise to the job you've brought them in to do. Look for added value in an interim appointment, by asking for advice on a range of business issues. Don't stray too far from the brief though!

The Don'ts

Don't think the little black book is easier While it may be tempting, your list of former colleagues will never be as full as that of an interim recruitment consultant. An agency will know who's available, and who has exactly the right experience and attitude for your requirements. Remember, just because a former staff member may know the organisation, they may not have the skills for the job.

Don't be put off by a disorganised CV

Most interims take this path as a conscious lifestyle choice. That means they've performed many different roles for many different organisations so don't expect a well-structured CV or clear career progression patterns. Instead look for someone who has reached the top of their field during their days as a permanent employee and has a number of successful interim roles under their belt.

Don't hire if you doubt their experience

Don't consider hiring someone who lacks the relevant experience. An interim might say they can do the job, but interim positions don't support learning curves. If you want someone to hit the ground running, make sure they have proved themselves in the same role. Remember too that references are every bit as important as when hiring a permanent person.

Don't let pride get in the way

You're paying an interim to do a job you don't feel can be done by people already in the organisation and that means they're likely to make judgements and recommendations on tough courses of action for that project. Good management involves accepting you don't have all of the answers all of the time and sometimes pride has to be sacrificed for the good of the organisation.

Don't forget the exit process

The exit process should be planned from the beginning of the assignment as you'll want to ensure an interim's knowledge is kept within the business when he or she leaves. Where a permanent member of staff will replace the interim, the interim manager should be involved in providing a detailed debriefing for the new management team. This is often the difference between a 'temp' and a dedicated interim.

Gavan Burden, managing director of Burden Dare, www.burdendare.com

1. Interims provide a better way to handle redundancies

Companies can protect the well being of their full time managers by hiring interim executives to implement their redundancy programmes during the current credit crunch. Interim executives, with knowledge of the necessary legal processes and aware of the vital human aspects, can act with compassion and efficiency. Interim executives experienced in managing redundancy programmes, have no personal history with any of the employees and leave the company once the programme has been completed. They do not suffer the subsequent stress, heartache and poor performance often experienced by full time senior managers.

2. Interims provide action rather than advice - often at half the cost of management consultants

Burden Dare interim executives have at least 15 years commercial line management experience. Many have MBAs.

The daily fees to a client for an interim manager range from £800 to about £1,750. The majority are between £1,000 to £1,400. Compare this to similar management consultants' fees of £1,400 for a graduate entrant, over £4,000 for a partner, and around £2,000 to £2,500 for a manager. Many companies turn to management consultants in both good and bad times. But is this the best response?

3. Many extraordinary managers choose interim management as their career

It's the 80/20 decision. Many managers are motivated by doing things. Initially, this takes up 80 per cent of their time. As they rise up the company, this ratio is reversed. Eighty per cent of their time is preoccupied with corporate affairs, while only 20 per cent is concerned with what they like and can do best. Now many senior executives choose interim management as a career. Often, they have worked with the big five management consultancies, and combine this with long term, successful management experience.

4. Three reasons why you shouldn't hire a friend of a friend

a Employment law.

b References.

c They could be looking for another job and might leave you suddenly.

* These are the full versions of edited responses that appeared in a feature in the November 19, 2009 issue of SM