Interim Management Sector continues to grow

The results of the IMA Ipsos MORI survey for Q1 2012 has some interesting findings including;

  • Data highlights number of enquiries for interim managers is on the increase
  • Sector continues to thrive in spite of possible threats from government PAYE proposals
  • Women accounting for an increasing number of assignments  
The number of enquiries for interim managers increased by 18 per cent in the first quarter of 2012 and the number of new assignments jumped by 20 per cent in the same period, according to the latest Ipsos MORI survey, conducted on behalf of the Interim Management Association (IMA), the industry body representing the leading UK Interim Management Providers.
 
Some other survey highlights include;
 
  • The average length of assignment was 152 days, compared with 173 in the previous quarter.
  • Programme/project management was the most common reason for hiring interim executives, accounting for 36% of all assignments.
  • Over half (53 percent) of private sector assignments were in banking and finance.
  • Public sector business is dominated by local government – accounting for almost half (48 percent) of all public sector assignments.
These findings confirm  continued growth for the Interim management sector and that it remains a practical, economic and speedy solution to organisations needing help with Change, Restructuring, Turnaround, special projects or to bolster their senior leadership capability.
 
However, we can’t ignore the threats that face the sector such as the possible changes to tax laws, which could require interim managers to go on to the payroll of companies that engage them, rather than operating  through a Limited company as a specialist in their area.  Whilst the Government plans to tighten the rules of ‘off payroll’ appointments at what remains a challenging time, it could threaten the value proposition of Interim Executives and the flexible resourcing solution that organisations can utilise to gain immediate results.
 
The survey also revealed female executives account for almost one third (31 per cent) of all the assignments, up from 24 per cent in the previous quarter.
 
Interestingly, given the recent press surrounding the small number of female executives represented at Board level following the Lord Davies review it is positive to see an increasing number of female interim executives being engaged on assignment and it seems to be a serious career choice for an increasing number of female executives.
 
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News posted: 18/07/2012 by Steven Wynne