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Can interim management replace a permanent position?
Highly qualified managers are often needed, especially for upcoming changes or new challenges. But finding a permanent manager who will stay with the company for the long term can sometimes be difficult. After all, the demands are high, and often very specific tasks are involved for which many years of experience in certain areas are necessary. To overcome these difficulties, interim management can therefore be a good way to adequately replace a missing manager. But interim managers also bring other tangible advantages.
You will learn what these are and what opportunities, risks, and perspectives can arise for companies through interim management in the following article.
Interim management: a brief definition
Interim management is the employment of experienced managers temporarily. These self-employed managers are ideal for quickly filling a vacant position in companies or managing a specific project. Compared to a permanent manager, an interim manager has several advantages: They are flexible, bring a wide range of experience to the company, and are often more cost-effective due to the time limit. However, interim management also entails some risks that companies should consider before deciding on this option.
What are the strengths of interim management?
Understandably, companies often hesitate when it comes to choosing between an interim manager and a permanent employee. Both options have their advantages and disadvantages. But some reasons speak in favor of the interim manager in many cases. One of the decisive advantages of self-employed professionals is flexibility. This is because an interim manager can come to the company for a specific period or the implementation of a specific project, depending on requirements. He can also be deployed for various tasks requiring expertise not previously available in the company. The flexible deployment option saves the company time and money, as it does not have to search for the right employee for a long time.
Another advantage of interim management is the focus on the essentials. This is because an interim manager concentrates on his core tasks and can deliver significantly better results than a permanent employee thanks to his expertise. He brings his expertise and experience gained in a variety of other projects to the project so that he works as efficiently as possible while ensuring the company's quality standards.
In addition, interim management offers the company opportunities for strategic reorientation. Since the interim manager is only working temporarily, the company has the opportunity to test new measures or review existing processes without having to make a long-term commitment. If the strategy is successfully implemented, the company can take it over or hire the interim manager to continue working for the company. Interim management thus represents a great opportunity for companies: It offers flexibility, efficiency, and strategic decision-making freedom - all in one person. By using interim managers, companies can realign their processes, test new strategies and at the same time preserve their budget.
What requirements can interim management not meet compared to a permanent manager?
When deciding between interim management and a permanent manager, you must also consider which requirements an interim manager cannot fulfill. External specialists usually offer companies less continuity and reliability than permanent managers. Since an interim manager is only employed for a limited period, he lacks experience with the company, the company culture, and the employees. Therefore, he cannot work on strategic projects in the same way as a permanent manager. In addition, communication between employees and external managers is more difficult, as they are not as familiar with the company's business processes as a permanent manager.
In addition, the interim manager has fewer resources at his disposal compared to the permanent manager. Since many external managers work in several companies at the same time, they sometimes have limited time and resources for each company. This problem does not exist with permanent managers, as they usually devote all their working time and thus focus on one company, and have full access to resources.
Another disadvantage of interim managers compared to permanent managers is the lack of commitment. Since many interim managers manage different projects at the same time, they may have to set priorities. This can sometimes lead to them having to push back tasks or entire projects in terms of time. This can lead to the company's policies and goals being implemented later than planned or, in the worst case, deadlines being missed. A permanent manager, on the other hand, has full responsibility for his projects and is obliged to meet deadlines and implement policies.
Interim management and permanent employment each have their advantages and disadvantages - but it is obvious that there is often more security in bringing a permanent manager into the company. But the risk can be significantly reduced if companies selectively use the right interim manager. Because then the positive aspects outweigh the negative. So if you are considering whether to hire an interim manager or a permanent manager - make sure you have all the information you need and get expert and experienced advice to make the best possible decision.
What opportunities does interim management open up for companies?
If you want to give your company a new impetus, an external expert may be more suitable than a permanent employee. This is because interim management is a very efficient way to move a company forward. An interim manager as an external expert can quickly get to where you want your company to go because of their experience and expertise. Because with specialist knowledge and experience, the external expert takes a neutral look at company processes and often perceives far more than long-serving employees.
He can also perform many tasks more efficiently than a permanent manager and help companies achieve their goals.
Flexibility
An external expert is more flexible than a manager who is permanently employed by the company and can react faster to changes in the market. They have much more experience in different sectors and can therefore easily adapt to new environments.
Cost efficiency
Since interim managers only work for limited periods, companies save on costs for personnel administration and other administrative tasks associated with hiring a permanent manager. This is because companies only pay the agreed hourly rate - there are no other costs beyond that. It is also possible to link employment to the achievement of a specific goal. This ensures a predictable investment.
Experience
By hiring an interim manager, companies gain access to highly qualified specialists with many years of experience in their industry or niche. As a result, these specialists can achieve better results faster than permanent employees, without companies having to invest in long induction periods or expensive training programs.
Fresh view from outside
Interim managers can bring new ideas and strategies into the company and thus show new ways of solving problems. They can develop innovative approaches to solutions, helping to drive the business forward and create a competitive advantage. So if you're considering whether to go for interim management or permanent employment - take a closer look at the benefits of interim management. Because it can help you achieve goals faster and give your business the boost it needs.
What are the risks of interim management, and what should companies look out for so that the opportunities and strengths outweigh the risks?
Interim management offers many opportunities and strengths for companies, but there are also some risks. If you decide to use an external expert, you should consider the following aspects:
Working with an interim manager is comparatively unstructured and unregulated compared to the defined role of an internal manager. There are no defined roles and tasks, so you have to rely on trust in the expert. If you choose an external expert, ensure the cooperation is right and the manager can effectively solve the tasks. Make sure that your expert has the right competencies and skills, and that he or she also fits into the company in terms of soft skills. This is how you ensure that the team accepts the external manager.
An interim manager is usually not interested in a permanent position in your company. That means he only works until a certain time or until a certain project goal is reached. After this is achieved, the expert will leave again. If you decide to hire an expert, you should bear in mind that this will not result in a long-term commitment. So make sure that the external competence fits your requirements exactly and that you can use it specifically to solve the tasks set - even if it is only for a short time.
An interim manager often has no fixed contact person in the company and therefore works autonomously in most cases. This also means that it is enormously important that it is clear to everyone who takes responsibility for their decisions. Because if you disregard this and something goes wrong or does not work as planned, you have no official contact person or fixed authority in the company to talk to about the situation or who is responsible for the expert's decisions. An interim manager should therefore be involved in the company from the very beginning.
Interim management vs. permanent employment: the best of both worlds
Companies often decide between an interim manager or a permanent executive. Often, this makes sense. But often it is simply the best option to use both. After all, an interim manager can change the company structure and lead the team, while a permanent employee can help shape the long-term strategy. Both options have their advantages and disadvantages, but the right choice depends on the company and its needs.