A freeze on recruitment and a tightening of expenses are among the ways British businesses are coping with the credit crunch, the annual Alium survey has revealed.

More than 40% of the 1,072 interim management executives who responded said their most recent client company was feeling the impact of the crunch. The downturn was also manifesting itself through job losses, a sharp decline in sales and the curtailing of expansion plans.

The survey also revealed:

• 46% of client firms now have less confidence in the economy compared to last year – but 38% were as confident.

• Ineffective management (42%) and inefficient operations (44%) are the key weaknesses holding back client organisations.

• Clear strategy (41%) and strong leadership (32%) were seen as key factors in companies being able to weather the current economic climate.

How busy are you?

• 44% of respondents were engaged on defined assignments for between 76 and 100% of available working days during 2007.

• 23% were on assignment for between 50 and 75% of working days.

• One in five interims reports working 10% more in 2007 compared to the previous year.

• Less than 40% of respondents said they worked less in 2007 than in 2006.

How much are you worth?

• The average fee rate was £500 - £749 per day, with 42% of respondents slotting into this band. But one quarter earned £750 - £999 per day.

• One in three respondents earned up to 10% more in 2007 than in the previous year. Only 27% earned less last year than in 2006.

Why are you needed?

• 28% of respondents were brought in to address internal change and a quarter to steer through a new project/programme.

• 57% defined their most recent assignment as transforming or turning around a company/division.

What now?

Nick Robeson, chief executive of Alium Partners, said: “The survey is an important way of ensuring we continue to have an unrivalled and up-to-date understanding of the market and the industry.

“We’re grateful to everyone who took the time to respond and will now be using this feedback, particularly to educate potential clients about the extensive skills, values and expertise interim managers can bring to an organisation.”