Imagine this, one of your best financial controllers has handed in their resignation letter. They’ve been integral to your finance teams’ success but are moving overseas to pursue a new role. They’re in a critical role where you need to replace them quickly, but you’re wondering how you will find a qualified permanent employee to fill the gap.
This is the perfect storm to turn to an interim manager.
But if doubts start to arise about engaging with one and their commitment to your organisational success, we are here to clear up these misconceptions.
Interim managers have become a familiar aspect of both SMEs and larger businesses. A survey conducted by Robert Half in November 2023 found 44% of companies planned on adding new contractual management into their workforce in 2024, while 43% planned on maintaining these positions by backfilling vacated ones.
Among smaller businesses, however, there are often still misconceptions about temporary leadership, ranging from ideas that they are expensive and just to be used as a last resort to beliefs that they only offer temporary solutions and are less committed. In fact, the opposite is true.
Whether you're a seasoned executive navigating organisational change, an HR professional seeking to fill critical skill gaps, or an aspiring interim manager yourself, we will help provide clarity, guidance, and insights into the world of interim management.
There is no more qualified expert to speak on this than Robert Half’s John O’Leary. John is a Director at Robert Half, leading the Sydney Management Resources division. With close to 15 years of extensive recruitment expertise, he specialises in delivering high-calibre senior interim finance resources and providing crucial project support for finance transformation initiatives. John spearheads a dedicated team that provides temporary recruitment services to ensure the seamless day-to-day operations of finance functions. They also cater to the specialised need for executive skills on an interim basis, particularly when pivotal C-Suite positions become vacant.
Exploring interim management as a solution for the first time can feel overwhelming, but in the capable hands of John, let us guide you through evaluating its suitability for your needs and making informed hiring decisions.
In this article, we demystify the role of the interim manager, highlighting their crucial contribution to navigating today's business needs.
Assuming that interim managers are more expensive than permanent staff because of their higher hourly rates is comparing apples with oranges. After all, when you compare the total costs of an interim manager with those of a permanent employee, other factors need to be considered. Interim managers bring their expertise and experience to the company with them, meaning they can get results more quickly than new, permanent staff. Bringing in an interim manager also eliminates the cost of recruiting and training permanent staff members.
In addition, contractual management talent can start work quickly. That’s an advantage in urgent situations when there is no time for a long recruitment and onboarding process. And because interim managers are deployed flexibly for temporary assignments, companies only pay for the time and work that are necessary. Finally, the recruitment of a permanent employee who turns out to be not the right fit works out more expensive than getting the perfect ‘plug and play’ solution immediately, in the form of an interim manager. The cost of wrong hires is more expensive across the board, not just in terms of time and money. Recruiting the wrong person often has a negative impact on their colleagues – and it’s impossible to put a price tag on that.
John outlines the fact there are many costs that are associated that permanent staff that are not present when calling on interim managers. He says, “when you consider that most interim managers are engaged for handful of months in a business, when you look at the capital cost for those few months alone, it is a lot less than you might think, especially when there are no other employment benefits like annual leave and sick leave.”
The fact that short term management talent are not looking for a permanent job doesn’t mean they are not committed to helping companies achieve their long-term goals. They are often extremely dedicated to the success of the organisation they are working for, precisely because they are only working on a project for a limited period.
As experienced professionals, interim managers understand the importance of delivering results on time. This makes them highly motivated to achieve the company’s targets. And if the project takes longer than expected, an interim manager will demonstrate loyalty in continuing the assignment until the goals have been reached.
In John’s 15 years of recruitment experience, he has never come across a lack of dedication or motivation from an interim manager he has placed.
He says, “interim managers are often on the senior end of the spectrum, and I have never seen someone enter a business not wanting to hit the ground running. Not only that, but for an interim manager to be desired by a business, they need to have a proven record of a high quality of work in the businesses they join, so their future depends on their past achievements, meaning they put everything into ensuring they leave the business in a better state they entered it.”
Furthermore, interim managers bring a fresh pair of eyes and new ideas to an organisation, which may reinforce their involvement and motivation. They are passionate about adding value and making an impact. They also understand that their reputation and future opportunities depend on their performance and achievements. That is why they go to such great lengths for the company they are currently working for, just like permanent staff.
“I can see where this misconception comes from, because often they are,” says John. “This is an interesting one, because I see this more of an issue as a candidate rather than a business. Candidates might feel I’m only ever calling them because a crisis is happening. For example, the CFO of a business has been fired and need to be replaced or because cost has spiralled at a company, and they need a new CFO to come in. In these instances, there’s so much to assess, changes to be made so any candidate who takes this on will be working at a million miles an hour. The skill of the recruiter here is to articulate the challenge that lays ahead so the candidate has their eyes wide open for the challenge and can make a well-informed decision as to whether it is the right opportunity for them.”
Despite this, interim managers are not only brought in as a last resort to put out fires.
They can be used to reach strategic goals, lead change processes and add specific expertise to the organisation that may not yet be available. It is true that interim managers are often deployed for restructuring, mergers, takeovers, implementing new systems, change processes and the like.
However, they do not consider these to be emergencies, but rather opportunities to contribute actively to the growth and success of a company. Interim managers are not mere crisis managers, but also experts who contribute their experience to companies to improve processes, systems, tools and teams and take them to the next level.
Due to the temporary nature of their assignments and the flexibility and variety that interim managers are looking for, it is true that they don’t stay in one company for years at a time. However, that doesn’t mean they pay no attention to the company culture. Interim managers are very aware of how important it is to understand company culture if their assignment is to succeed. Many of them indicate that they would rather pass up on projects than accept an assignment in a company or sector that doesn’t feel like a good cultural match.
Interim managers go to great lengths to understand the customs and values of an organisation, since doing so paves the way to good communication, collaboration and achieving the targets. Understanding the corporate culture enables them to respond more effectively to the organisation’s needs and integrate themselves smoothly into the team. That allows them to flourish in their role and derive great satisfaction from it, further increasing their motivation.
This is perhaps the biggest misconception of them all, because it ignores the results that many companies have achieved by deploying interim managers. Although the appointment of interim managers is temporary, this doesn’t mean their contribution to the company cannot have a lasting impact. They often bring new perspectives, strategies and best practices that have a positive influence on the company culture, processes and performance in the long term. An interim manager frequently acts as a catalyst for positive change and growth within an organisation.
“We often put in someone who is 110% of the job that is needed. This means they can come in and hit the ground running while providing long term value add,” says John.
Furthermore, interim managers can continue to have a lasting impact even after their assignment has ended, by passing on their knowledge and experience to the internal team. That way, they leave a legacy behind – and the organisation can continue to reap the rewards.
John says, “The biggest push back business leaders give to hiring interim managers is they say think they can make do with other means. They say, ‘by the time someone is trained up I may as well do the job myself’ or ‘I can cover this role by asking the internal 2IC to step up and do it’ or ‘we can get by if we divide the duties in the team.’ The problem with these solutions is that it can in fact do more harm than good to the team performance and company culture.”
“What commonly happens is someone steps in to cover the role but feel they should stay there on a permanent basis and not return to their own role. Not only does that result in another open role, but sometimes that jump is too large and the person filling in does not have the skill to hold it long term. The last thing you want is an ‘egg on face’ situation where you see that person then resign. Ultimately, filling gaps with people who aren’t fully qualified for the job at hand can result in two people leaving instead of one.”
Dividing duties in the team is often used in more cost-conscious environments and it can yield greater saving up front, but it can contribute to poor culture and an unhappy workforce but asking them to do more until such role is covered. You roll the dice on more attrition and resignations by pushing a workforce too hard.
“You might be surprised about the skills that are sitting in the market and how quick interim managers can come up to speed. Hiring people who have done prior contracts (especially in the industry a business is hiring for) can be advantageous because they are used to being dropped in the deep end, not knowing historical information or stakeholders, but can act autonomously to find and hunt that information to deliver great results,” says John.
“Our senior interim finance division on senior roles has a 99% success rate, meaning no one pulls out of their contracts.”
John says when you deal with senior people in market, they behave very differently because they are managers themselves and they know what it’s like to be promised something, and it not being delivered.
“It's so rare that a senior interim manager would break the term they sign for. These types of people are smart and commercial enough to have robust up-front conversations in advanced to ensure they are happy with the arrangement before they jump in. Keeping communication high alongside a skilled consultant keeps attrition rate very low.”
As you’ve discerned, interim managers are not simply placeholders or stopgap solutions. They are highly skilled professionals with the experience, adaptability, and focus to deliver tangible results in times of transition and transformation.
By dispelling the myths and misconceptions surrounding interim management, we hope you have gained a deeper appreciation for their value and potential. The right interim manager can bring fresh perspectives, specialised skills, and a laser focus on achieving your objectives while bridging gaps and ensuring continuity during periods of uncertainty.
So, the next time you encounter a challenge or opportunity that requires immediate action and expertise, consider the strategic advantages of engaging an interim manager.
When should I consider hiring an interim manager?
When you face a sudden leadership gap
Need specialised expertise for a specific project
Require support during organisational change or transformation
What are the benefits of hiring an interim manager?
Immediate expertise
Flexibility
Objectivity
Risk mitigation
Agile solution
Cost-effective
How long does the interim management process take?
The interim management process is designed for speed and efficiency. Typically, we can identify and place the right interim manager within a few days on the complexity of the role and urgency of the situation. In some cases, interim managers can be onboarded within 24-48 hours to address critical needs. The duration of their engagement can vary widely based on the specific project or situation, ranging from a few weeks to several months or even longer. We work closely with you to ensure a smooth transition and successful outcome.
What are the key qualities to look for in an interim manager?
Proven track record of success in similar roles/industries
Strong leadership skills
Strong communication skills
Adaptability to grasp culture and challenges
Results-orientated mindset
Ability to deliver tangible outcomes in tight timeframes
