What is the difference between hiring an interim manager and a permanent manager?
Why do companies hire an interim manager instead of a permanent manager? Many companies, business owners and boards have limited knowledge on the hiring of an interim manager and its benefits. However, over the past few years, Nextt Management is experiencing an increasing number of temporary or flexible forms of hiring. It is in the form of project hires or management experts that are hired to solve very specific problems or acute challenges.
The Gig Economy is an expression of the whole movement that is upon us and that looks set to continue to grow, according to a study conducted by Deloitte. The Gig Economy is about being assigned (temporarily) to solve a specific job rather than being hired to do a long-term job.
Many companies still hire full-time managers as most companies have never used an interim manager. In these cases, they mainly draw on the knowledge they have and hire a full-time employee.
An interim manager and a permanent manager are two different concepts
An interim manager is a problem solver. They choose to be part of the temporary and flexible workforce because they are motivated by a good challenge and are ready to go into a company with their vast experience where an outside perspective is needed.
The motivation behind this career is that the largest proportion of the interim workforce is not looking for a permanent job where one spends an entire career in one organization, but instead has management experience from several different organizations. Therefore, they prefer to work in project employment. The interim manager works towards specific goals and creates visible results. In addition, they have the opportunity to design their own worklife themselves, something that is increasingly in demand.
There are many benefits and reasons why companies choose a director / manager who specializes in interim management versus a permanent manager. Here are a number of situations where an interim manager is the most optimal solution:
1. Situation: A growing business
Is your business growth overtaking your company’s resources or are you embarking on major transformation projects which you cannot keep up with? Then Interim Management can be a possibility since there is a lack of managerial resources who have been on a similar journey before. They can help you with making the right decisions, steer a transformation/process in the right direction and hence minimize the risk.
2. Situation: Gap management
When a key employee leaves your business, whether voluntarily or involuntarily, there may be a need to get a interim manager into the job immediately until a new, solid resource is in place. If your company experiences, for example, being temporarily without management for a shorter or longer period, you can thus advantageously employ an experienced interim manager to maintain smooth operations. In this way, you avoid a managerial vacuum and can drive the business forward, so employees and customers stay safe.
3. Situation: Turn-around cases
If the company is in crisis, it can be absolutely crucial with objective and an external set of hands that can rightly go in and address the challenges the company faces or is in the midst of. The manager comes with an executive mindset and is not emotionally tied up in the business and can better make the necessary decisions that ensure the crucial change.
Interim Management as a solution
Interim Management is a professional career, which is why we at Nextt Management select only the most experienced and competent operational managers. Interim managers who are assigned on a temporary basis have the communication skills, the courage to make decisions and facilitate the results needed to take the company above the finish line and perform the high-level tasks involved. This is possible because of their past experience and expertise in the industry.
For more information on how interim managers produce faster results than permanent managers – read this blogpost from our US partner Cerius Executive, who is part of our international partner SeniorManagementWorldwide.