How to hire an interim
Whether you are hiring an interim manager to fill a gap or to run a major change project, you should expect them to be hitting the ground running and delivering almost from the word go.
What do you want them to achieve?
It’s important you have clarity on what you want them to achieve and by when. It’s not so vital to go into too much detail about how. If they are experts in the challenge you are facing then you probably don’t want to be constraining them by telling them what they should do – let them tell you what is needed to achieve your desired result.
It may be that you do not have total clarity on where you are now, where you want to be and how you should get there. This should not be an issue. When you meet an experienced interim manager to evaluate their suitability, they should, with their in depth knowledge of the challenge area, be in a position to help you gain that clarity through the questions they ask and their insights based on past experience.
What qualities will they have?
The next stage is to decide on the qualities you believe are important in an interim manager.
These are likely to fall into three categories:
- Credibility – are they experienced in this business area? Do they have a successful track record of solving similar challenges? Is sector experience really important (sometimes it may be valuable to have experience across multi-sectors)?
- Competence – do they know what they are talking about? Do they specialise in this area? When you meet them, do they ask good questions? Do they bring a different perspective? Do they help you gain clarity or do you walk away more confused? Will they need minimal supervision?
- Compatibility – could you work with them? Will they be accepted? Do you believe their style and approach will be effective within the working practices and culture of your organisation (unless of course, you want to shake these up!)
Limited Company
You should ensure when taking on an interim manager that they operate through their own limited company. This will ensure you:
- Avoid employment agency legislation including possible PAYE complications
- Avoid the legal burden of employing a permanent member of staff (minimum wage, redundancy, SSP, maternity leave etc)
- Have no hidden employment costs (pensions, holiday pay and other long-term overheads)
- Have no responsibility to operate PAYE on your consultancy fees. This is extremely important, since if the interim manager is operating as a sole trader, HMRC could dispute their status and, in certain circumstances, look to you for income tax and National Insurance on their fees, long after the contract has ceased
- Being employed by their own company is indisputable proof that they are not employed by your client (although not for IR35 purposes)
Where do I find them?
Just as when recruiting permanent employees, you have two main options:
- Through agencies (in the interim management market these are called interim service providers)
- Direct – through websites, Linkedin, people in your existing networks
If you do not have experience in taking on interim managers then you may be better off in the first instance using an interim service provider. Good providers will be able to help you draw up your requirements, give you a good idea of the costs, supply you with a long list of relevant CVs and then help you select who to meet. Once you have decided on the right candidate, you will sign a contract with the interim service provider who will have a back-to-back contract with the interim manager. There are over 300 interim service providers in the UK. Some are generalists whereas others specialise in sectors or job functions. The IMA is a professional body for service providers, whose members sign up to a professional code of conduct (www.interimmanagement.uk.com)
Billing
Normally you will expect to pay VAT and expenses on top of the day rate charged by the interim manager. Occasionally some organisations do ask for a rate including expenses.
When contracting work directly with interim managers, you should pay bills promptly as this is the equivalent of their salary and late payment can cause severe cashflow issues for them.
When working through interim service providers they will normally present you with a fortnightly or monthly bill for the fee of the interim manager with their margin on top. A few providers may bill you just for their margin and the interim manager will bill you separately for their fee and expenses.