If you’ve ever considered a role in interim management, now might just be the perfect time to make a move. While the collective chaos of the pandemic and IR35 reform created an initial reluctance to use interim contractors and an initial slowing of the market, over a year on, we’re witnessing an almost complete reversal of fortunes.
Despite the well-founded reasoning for IR35 reform – to bring PAYE and off-payroll workers taxation into line, as well as to fill an apparent £400 million blackhole in the treasury – many (including myself) were justifiably worried about the impact the reforms would have on the interim management market. Fears of entire projects being wiped off the map or taken offshore, as well as damage to national economic growth, were widespread. Indeed, this even led to 14 recruitment firms writing to then Chancellor Sajid Javid in 2020 asking for the reforms to be delayed, citing concerns that compliant companies would not have enough time to understand all the legislation given the significant delays that had already taken place. And as reforms were yet again delayed until 2021 against a backdrop of uncertainty due to Covid-19, there was yet more confusion and chaos for the interim market.
IR35 Reform One Year On: Where Are We Now?
While all of this led to an initial reluctance to use interim contractors, just over 12 months on, I’m pleased to say that it appears our collective fears have been largely unfounded. INIMA, the International Network of Interim Manager Associations, has recently published a new survey which summed up the collective experiences of 750 practising professionals, and the results have been encouraging. Interim roles have actually been increasing across Europe, with standout growth of 16% and 10% in 2021 from the UK and France respectively. According to the report, January 2022 has produced an even greater increase, with France and the UK again leading at 21%. Of course, all of this suggests that the market has done more than simply bounce back – it tells us that organisations are embracing the use of highly skilled change and transformation experts as a catalyst for growth. This is hardly surprising – few of us are capable of dealing with uncertainty and crisis at the drop of a hat, and this is what sets interim executives apart from their permanent counterparts.
Positive Impacts Of IR35 Reform
Despite predictions of havoc, in my opinion, the advent of IR35 regulations has actually helped create more interesting interim assignments, with clearer milestones and deliverables. The regulations have forced clients to be more specific in their requirements, which means defined project timescales with an increased emphasis on Mutuality of Obligation. Additionally, the regulations have helped organisations become more focused on achieving specific ROIs, increasing efficiency and allowing interim managers to be fully focused on the area they have been recruited to deliver on. Furthermore, for interims acting inside IR35, there’s an increased likelihood of receiving permanent benefits as well as greater engagement with stakeholders, which in turn could lead to longer-term work or even a permanent position. At GRG Executive Search, this is something we’re seeing more frequently. All of this creates a more positive, productive and engaging working environment for interim managers, and helps organisations to get the most out of each and every assignment.
The Future’s Looking Bright
In conclusion, the bounce back for the interim market has been strong, and looks set to remain consistent. I’ve personally spoken with many interims who went back to permanent assignments as a result of the changes that have occurred throughout the past year, but now are seeking a move back to interim. I’ve also had conversations with a number of organisational leaders who initially incorrectly assumed that if an assignment fell inside IR35 it needed to be on a fixed term contract, and it’s clear this perception is slowly beginning to shift as businesses become accustomed to the changes. Far from becoming a stumbling block as many feared, interim managers remain hugely busy, with the INIMA report suggesting a significant increase in utilisation from 33% in 2020, to 63% in 2021. Whilst there’s bound to be a few bumps in the road ahead as interest rates rise and fears of recession persist, my colleagues and I remain confident that interims with strong transformation management skills will remain indefinitely in high demand.
To discuss your next career move in interim management, or for help finding a skilled and experienced interim manager for your organisation, don’t hesitate to get in touch with me for a confidential discussion on danedwards@grgexecsearch.com or 07788697887.