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Career advice, insights & tips for HR professionals

Is the HR interim market pointing towards recovery? 14/06/2010

Interim opportunities have been scarce and competition high but improvements in market conditions during the second quarter means that the tide is turning. How can you ensure that you are best placed to secure your next HR interim job?

Is the HR interim market pointing towards recovery?

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  1. How did the HR interim market fare in q1?
  2. How has HR interim recruitment changed in q2?
  3. More demand for HR interims across the market
  4. Generalist HR skills increasingly sought after
  5. How can I position myself as an HR interim?
  6. Focus on networking & relationships

How did the HR interim market fare in q1?

After the difficult market conditions of 2009, there was a renewed hope that the interim arena would fare better in the first quarter of 2010. This was an optimistic view as it soon became evident in January that the HR interim market was continuing to struggle.

On the interim side, more HR professionals were entering the market having recently completed assignments or having decided to become an interim following redundancy, thus creating increased competition. On the employer side there was a reluctance to 'shop' and attention focused on permanent vacancies in order to fill vacant positions where headcount already existed.

Spending cuts continued which meant further recruitment freezes especially on interim assignments. Of the assignments that did come to fruition, there were still a number in the change arena around organisational development and employee relations as clients continued to restructure, downsize or merge.

As the quarter drew to a close there was a noticeable uplift in assignments registered primarily at the mid-range of £300-400 per day. However a lot of these assignments didn't necessarily convert to placements as internal and direct candidates popped out of the woodwork and many assignments were withdrawn or fell by the wayside due to lack of budget at the final stages.

How has HR interim recruitment changed in q2?

There's much more employer confidence in the market place and we're finding many more clients looking to hire HR interims for specific projects lasting three months or more. There's an increased sense of urgency to seal the deal and sign on the dotted line and not just shop for a benchmark to the direct or internal candidate already in the wings.

HR interims' mood also seems more buoyant and they're positive about the HR market place. We're finding experienced HR interims having more success through their own channels, justifying all the time and energy focussed on business networking. Also with the concept of interim now widely accepted as a cost effective alternative to consultancy, there are an increasing number of enquiries from clients explaining their requirements and asking advice on what interim solutions exist in the market place.

This helps us better understand the need, therefore allowing us to focus on specific interims and briefing them more fully to ensure they're better prepared for interviews, hence increasing their chances of landing the assignment.

More demand for HR interims across the market

Most noticeably the financial services market is booming alongside some professional services firms. Due to significant losses in the back end of 2008 and continuing through 2009, these industries had been working at minimum staff capacity and are now entering a more positive climate, financial markets are recovering and HR interims at all levels have been drafted in to assist on key projects.

It's fair to comment that commercial organisations in general have seen a marked uplift in work which can be undertaken by an interim, as opposed to the not-for-profit sector, where significant spending cuts have created an unstable future. With the whole public sector under the spotlight there will no doubt be a question mark over the cost of interims within these organisations, significantly reducing the number of interim assignments available.

Generalist HR skills increasingly sought after

Skills wise, it seems that a lot of the negative change (ER and OD assignments) that has epitomised HR interim assignments over the last 18 months is now moving towards positive change. There's an increased demand for HR generalists, whether HR business partners or HR managers/head of HR/HR directors, where a myriad of skills can be utilised to instill new working practices or enhance existing ones.

The more specialist arenas of comp and ben/reward, learning and development/management development and recruitment and resourcing have also seen much more activity as companies refocus their efforts on looking at their existing employees as well as strengthening existing teams with new blood.

There's also more of a willingness on the client side to look at part-time options which is enabling tight budgets to be utilised more effectively as projects will still be worked on under more flexible working.

How can I position myself as an HR interim?

Flexibility is still the key when seeking your next interim assignment. Although there's increased activity in the HR arena, it doesn’t take a genius to work out that budgets are still restricted and any employer recruiting an interim is under pressure to justify their spending make sure that the interim delivers what is required.

Therefore it's important that you are aware of your market worth in this difficult climate and that by compromising on your normal day rate for a certain assignment will not mean that you'll be seen as being desperate or that you won’t be able to reach your previous earning potential again.

It's the assignment that's priced therefore you have to decide whether you think that an assignment is worth the price attached to it and if so and you are happy to undertake that then everyone is happy. True interim consultancies will have discussed the role with the client in detail and will have advised on the rate to make sure it is reasonable and in line with their expectations.

Focus on networking & relationships

Continue fostering your network connections via face-to-face meetings, seminars, emails, phone call and social networking as these are long-term business opportunities which will pay dividends over time.

Make sure your CV is up-to-date and has a skills and achievement focus as now more than ever employers are looking for interims who have a successful track record and can replicate this for them.

Lara Rutherford, senior resourcing partner, Interim Performers

Lara Rutherford, senior resourcing partner, Interim Performers

Lara has worked for Interim Performers (part of the VMA Group) for the last 5 years, specialising in interim human resources assignments. Prior to joining IP, Lara spent 8 years recruiting accountancy and finance interims.