Choosing between hiring an interim manager and traditional recruitment can significantly impact a company’s ability to respond to these challenges quickly and cost-effectively.
When is an Interim Manager the Right Solution?
An interim manager is often the best option in situations requiring quick responses or when expertise is needed only for a specific period. Mergers and acquisitions, significant projects, various change situations, the departure of a permanent employee, or temporary absence are examples of situations where an interim manager can quickly bring experienced expertise and perspective.
Strategic Advantages of Recruitment
Traditional recruitment best serves situations where the position or role clearly spans several years. A permanent leader can develop the organization with a longer-term perspective and build long-term relationships both internally and with stakeholders.
Recruitment is particularly justified when a company:
- Wants to develop internal competences and corporate culture in the long term
- Needs a permanent change in the management structure
- Is building a new business area or expanding into new markets
Even in these situations, an interim manager can be used as an initiating force who then passes the baton to the permanent hire. With the help of an experienced interim manager, knowledge is naturally transferred to the team permanently as well.
Cost Structures Differ Between Alternatives
Comparing cost structures reveals significant differences between these alternatives. Although the daily cost of an interim manager is typically higher, the total costs can be significantly lower compared to hiring a permanent manager. This is particularly due to the indirect costs of recruitment, such as:
- Time and resources required for the recruitment process
- Onboarding period costs
- Long-term personnel-related expenses
- Potential severance pay
Additionally, employment costs are entirely fixed expenses for the company, whereas an interim manager acquired as a service can be used only as needed.
Comparison Helps in Making a Choice
One of the strengths of interim management is its rapid deployment. An experienced interim manager can start working with as little as a week’s notice, while a quality, permanent recruitment process typically takes 3-9 months. This time difference is often a critical factor, especially in change situations or when seizing market opportunities.
On the other hand, recruitment can enable long-term development work and deeper commitment to the organization. A permanent leader can build stronger internal networks and implement long-term strategic changes.
The choice between interim management and recruitment should be made on a case-by-case basis: what are the company’s immediate needs and long-term strategic goals. Practical experiences show that both options have their strengths in different situations.
Transfer of Knowledge to the Company
The specialized expertise of interim managers can be utilized immediately for specific challenges. They bring extensive experience from similar situations in different organizations, enabling the rapid adoption of best practices. Additionally, interim managers are skilled at transferring their expertise to the organization during the project.
A traditionally recruited leader, on the other hand, grows to become part of the organization and develops their expertise along with the company’s needs. This enables a deeper understanding of the company’s culture and practices, which can be valuable in the long run.
Example: A Technology Company’s Transformation
A medium-sized technology company faced a significant need for digital transformation. The company decided to hire an interim manager to lead the change project and simultaneously initiated a recruitment process to find a permanent digital business leader.
The interim manager was able to immediately launch critical changes and create the foundation for a new digital strategy. The concurrent recruitment process ensured that when the project ended, the organization had a permanent leader ready to continue the development work.
Similar successes have been achieved in developing and managing many strategic corporate functions, such as communications and marketing.
Key Decision-Making Criteria
When making a choice, it is essential to evaluate:
- The urgency and criticality of change
- The extent and availability of required specialized expertise
- The organization’s ability to integrate new expertise
- Long-term strategic objectives
- Available resources and budget
A Clear Role Needs Goals and Metrics
Alongside personnel selection, it’s worth considering the best way to utilize expertise in the company’s current development phase. Regardless of whether a service relationship or employment relationship is chosen, success in a key role requires clear objectives.
First, define what is expected from the role. For an interim manager, it’s beneficial to set project-specific goals and timelines. In recruitment, broader definitions of areas of responsibility and long-term development goals are emphasized. In both cases, it’s good to ensure that the organization understands the basis for the choice and supports the solution.
To monitor success in the role, it’s advisable to define clear metrics – whether the person is acquired through a service or employment relationship. For interim managers, project-specific KPIs and milestones are often emphasized, while in recruitment, the functionality of the organization and business development are more broadly monitored.
When a New Leader Takes Action
For both interim managers and recruited leaders, it’s necessary to consider how new expertise will be integrated into the organization. The following preparations are quite necessary when a new leader starts in their role:
- How to communicate the change to the organization
- Defining the collaboration model with key personnel
- Ensuring necessary tools and resources
- Regular monitoring and feedback collection
Could a Hybrid be the Optimal Choice?
Future successful companies will utilize both flexible interim management and traditional recruitment methods depending on the situation.
As a new opportunity, Cherry has brought an innovative service to the market that combines the best aspects of interim management and recruitment: Cherry Pinterim offers a risk-free and cost-effective way to acquire permanent expertise immediately, with an experienced professional initially working in a service relationship and transitioning to employment after a “trial period.” This hybrid, combining interim management and permanent recruitment, offers the company both rapid response capability and long-term development.
Finally, it’s important to remember that both interim management and recruitment are investments in the company’s future. With good consideration and right timing, both options can provide significant added value by supporting the company’s growth and development.
