In today’s uncertain times, here’s how to determine when to bring in interim management rather than hiring a full-time executive.
From the migration of critical processes to the cloud and the switch to remote work to the Great Resignation and the Great Reshuffle, human resources professionals have adapted to a staggering pace of change. And with an uncertain economy and a corporate culture still in flux, the pace is not on the verge of slowing down.
Next year is certain to bring a range of new challenges, and there is one that HR departments are not looking forward to: Coping with the current high rate of employee turnover. HR leaders are especially pressed when the game of musical chairs extends to the C-suite.
Replacing top executives is disruptive and time-consuming, and it’s also expensive. Retained search firms, tasked with finding permanent replacements for CEOs, CFOs and other company top brass, often charge one-third of the new executive’s first-year salary, or a flat fee that begins at $100,000. And those are just the costs of executive search. Hiring, of course, comes with long-term contracts, benefits and severance packages that make it imperative that the new full-time executive is an ideal fit for the company for years to come.
Because of this daunting process, HR pros often hire interim executives to fill C-suite gaps. Interims can be a convenient alternative to full-timers, and often bring with them experience and skills that keep an organization on track during turbulent times.
In the year ahead, HR departments will be contemplating a range of different hiring scenarios to address economic headwinds and fast-changing company culture. Many will be deciding whether they need a new, permanent full-timer, or whether the relatively simple process of bringing in an interim executive will be the better option.
I have talked to hundreds of companies about both options, and helped many find interim management.
