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Employment Levels Buoyant as Investment Sinks, Bringing Fair Weather for Interim Managers

LONDON, December 11, 2012 /PRNewswire/ --

A recently released Ernst & Young ITEM Club Special Report  demonstrates a murky economic future for most businesses, but the surprise winners could be Interim Managers.

The report points out a disparity between output and employment levels during the recession, two factors that usually have a close relationship. Output fell by 6.3% during the recession but employment just 2.4%.

Upon further analysis, businesses appear to be hoarding skilled workers and this trend is most prevalent in the financial services sector as well as transport, communications and professional services.

Interim Management providers Russam GMS believe businesses spending more money on people could open up opportunities. Business Manager Glyn Lloyd comments "The value proposition of hiring an interim manager is amplified during this climate - crisis management, objectivity and flexible staffing are all typical benefits of hiring an interim manager. Short-termism and risk aversion is now key for businesses and that is at the core of interim management."

Wikipedia describes interim management as a "temporary provision of management resources" but every role is different. The list of benefits of using an Interim Manager has always been long but the incentives are becoming more appealing during the current climate.

Businesses are trying to invest but funding constraints mean they look elsewhere to make cuts. The Ernst & Young report shows adjusting hours and wage settlements to avoid redundancies is on the increase.

Pulling skilled people closer during tough times makes good sense. Interim Management could be the perfect match between gaining skills without committing to long term staffing costs; a very inviting prospect.

Glyn understands the industry and points out Interim Management isn't for everybody, it can be a lonely occupation but at the same time rewarding. "In the last two years we've seen a trend towards businesses choosing interim managers that have financial experience even if the role being applied for isn't in that field. The high level managers we place usually have a broad skillset and good business acumen so supplying interims with this criteria is easily achievable for us.

"Long term business strategy is difficult to rely on, underlining the value interim managers can bring during uncertain times."

Moving into the future the report isn't the first to predict a decade or more of slow recovery across Europe. The Government can increase clarity for its austerity measures to encourage domestic business investment, but for the foreseeable future businesses will need to edge forward tentatively.

Although the outlook is bleak, an interim manager could be the beacon your business needs to navigate through stormy seas.


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