Markets showing signs of Recovery

As summer approaches I am seeing genuine optimism amongst our interim managers and clients alike that certain market sectors are starting on the long road to recovery.

However, most of our interim management placements at present are still in the areas of business improvement, change management and business turnaround which would indicate organisations are still prepared to spend money when a leaner, fitter business is the result.

Where interim placements were common a short time ago to cover for scenarios such as maternity, staff sabbaticals and executive terminations, in our experience, organisations are preferring to re-organise internally instead by battening down the hatches in order to save funds in these uncertain times.

We have provided short lists of candidates to a number of clients in recent weeks only for the client to re-evaluate their plans at the eleventh hour and withdraw the assignment favouring instead a ‘make do and mend’ strategy.
I would suggest that this trend may continue for at least the next 12 months before more standard disciplines and scenarios re-emerge once again within the interim portfolio.

In truth I believe this may well have a positive Darwinian ‘natural selection’ type effect on the interim pool of talent because in my opinion it was starting to get saturated with interim managers from too few disciplines causing supply to outstrip demand ultimately driving down the day rates.
This recession may also lead to other changes in the provision of recruitment solutions for many private and public organisations.

Human Resource Directors are starting to see that swathes of employment laws and costs relating to permanent staff do not apply to interim managers meaning that the use of interim managers has suddenly become a lot more appealing.

I believe the balance of 2009 will test us all to the limit but at the end of it we will have a leaner and more structured recruitment industry where both permanent and interim management solutions are available in equal measure.