What are the advantages and disadvantages of hiring an interim manager?
The business industry is in a period of change following the worldwide economic crisis. To make sure your business is going on the right path, you must look for a solution and raise your business continuity. A business can be closed quicker than you think. This reason is enough to shake you up and motivate you to go look for the best optimal solution for this problem.
Interim managers are the perfect solution to a business’ lack of management resources and skill gaps within the workforce. In order to grow and transition, a company needs to embrace new technology and skills along the way. An interim manager can help your workplace navigate changing social demographics, technologies, and globalization.
Interim managers tend to be experienced business leaders who offer a temporary supply of support to your company and any changes you are going through. Whenever there is a gap in lack of management skills and resources, the interim manager is always there to fill it.
Before you dive into the process of finding a person to resolve your management problems, there are a few things you need to keep in mind like the advantages and disadvantages of hiring an interim manager that are listed below.
An interim manager should have a deep understanding of your company and business objectives. With interim management, you can implement and execute change quickly in your business and survive this tumultuous economic period. An interim manager will use a hands-on approach to educate your team on new skills, technology, and essential knowledge. Their job is to understand your business, avoid office politics and help your team reach their maximum potential.
Interim managers typically cost half the day rate of a traditional consulting house. They are only paid for the days they work, and there are no additional costs like NI payments, employee tax, holidays, and pension payments. You can even hire them part-time for just three months to help your company achieve specific goals and transition rapidly.
As an independent external resource, interim managers offer an objective view of an organization. They are not a threat to your management team and can provide a fresh perspective on your business. You are responsible for choosing employees to work on specific projects to ensure you have full-equipped teams.
In most cases, interim managers are not only adding more value to your business but the whole working atmosphere. Who wouldn’t like some change, especially having an expert for some time, freshening up the whole business place?
Furthermore, the cost of failure to adapt to change usually outweighs the price of hiring an interim manager. You can hire an interim manager in a matter of days through a flexible contract that can be changed depending on the project.
However, there aren’t just benefits present when hiring an interim manager. Considering the disadvantages should be on your mind, especially when you are hiring this type of manager for the first time.
If you need a team of interim managers for a project, you will end up managing multiple recruitment processes and produce more work for yourself. And that decreases your time for other important tasks.
The paying costs are an important factor as well. You will need to make research and choose a more experienced manager which can cost more. The amount of the costs you will pay for the external manager will certainly depend on their skills and the weight of your business problems. Interim managers can cost from £500 to £2,000 a day. That cost alone is enough to dissuade many companies from utilizing an interim manager.
As an external resource, an interim manager may not show the same level of commitment to your business as a full-time employee. After all, they are unlikely to have the same personal connection to the company.
When hiring an interim manager, you need to make sure their assignment and objectives are crystal clear. For example, discuss whether they have been hired to consult or to implement change. After all, you don’t need an external employee to make more mess in the one that you are in now. This explains why you, as an owner should provide an adequate explanation at the very beginning and avoid additional mistakes later. Think about this, additional mistakes can lead to additional costs and a bad reputation for your company.
Make sure to provide this external manager with all the resources, point what is the problem your company is facing, and provide him with all the relevant information about the company. Just remember, even though he is an external employee, doesn’t mean he or she to be treated as an external person. The interim manager will surely make an impact on your business and your employees, and you certainly want to give a positive experience to this business collaboration.