During such unprecedented circumstances, the Interim Management Survey 2020 captured and bench-marked what was happening in the interim market during the COVID-19 lock-down. We explore the results which are relevant to the Supply Chain and Logistics industry, alongside a look at the COVID-19 Interim Market and the potential impact of IR35…
- The number of female Interim Managers has decreased by 4% since last year – now only equating to 25% of all Interims
- ‘Change or transformation‘ projects are the primary interim assignments recorded this year
- IR35 has led to a decrease of Interim Manager’s in the public sector at only 28% – the lowest on record since 2013
- Out of all Interim Managers surveyed, 11% of them stated they ‘had an interest’ in the Transport / Logistics sector
- Bis Henderson Recruitment ranked within the Top 100 Interim Service Providers!
“Previous downturns showed us that the requirement for Interim Managers always drops off at the start of the cycle. History tells us that the requirement will come back strongly once the economy sees signs of recovery.”
COVID-19 Interim Market
Overall, 60% of respondents to the survey saw a sharp decline in opportunities as a result of COVID-19. Of all Interim’s surveyed:
- 25% said they are not considering permanent employment
- 23% said they would go part time if required
- 16% would consider Pro-Bono work
- 44% would choose to take extended time out
- 8% are exploring early retirement
- 24% recorded ‘other’
Interestingly, those in Interim Management positions at the end of February 2020 recorded:
“We also need to consider the big shift to fixed term contracts, in order to mitigate IR35. This will push rates down as well as reducing flexibility.”
IR35: A look at the private sector
The new IR35 rules were due to come into effect on 6 April 2020 but have been delayed until April 2021 because of the spread of COVID-19. The Interim Management Survey explores IR35 in detail for both the public and private sectors, but we’ve highlighted the key statistics that relate to the private sector below:
- 82% of interim assignments in the last year, within the private sector have been outside of IR35. This is a result of 90% of all interim assignments being in relation to significant change, whether it be turnaround, transformation or crisis / re-structuring work.
- 40% of respondents were set on keeping their net income at current levels by either taking only ‘outside’ IR35 contracts (13%) or doing whatever it takes to keep income the same (27%).
- At a time when the demand for highly experienced interim practitioners is at its highest, 19% of respondents indicated that they would ‘leave’ the UK’s interim cohort as a direct result of IR35.
“Currently, the supply/demand balance is in favour of the employer, rather than the contractor. Once that pendulum swings, it will be interesting to see how the interpretation of the IR35 legislation changes.”