Interim vs Fixed-Term: What Delivers More Value in a Time of Change?
Ahead of her attendance at Housing Brighton, Faerfield’s Vanessa Gabriel-Penha looks at the dilemma over interim and fixed term contracts.
Having recently joined Faerfield, I have been struck by the scale of change facing many of its clients in the public sector. Much of this has been driven of course by a combination of financial pressures, devolution of public services and local government re organisation. As a result, we are witnessing even greater demand for specific skills sets in strategic finance, structural and service transformation, digital and technology and increasingly in the area of commercial expertise and whole systems change.
Many clients in the public sector organisations from local authorities, housing associations, ICB’s to government departments and blue light services are preparing for or, in the midst of, significant structural and systems change with challenging timelines and under significant scrutiny. Often, they do not have the resources or the technical expertise to deliver this within their current organisations and are utilising outside support in the form of consultancy firms, interim managers and contractors on fixed term contracts to help plug the gaps.
This has drawn criticism from some quarters that organisations are spending too much money on external resource often without an appreciation of the scale, complexity and pace of change required by organisations that are also under significant pressure to deliver day to day services often to the most vulnerable members of the community. Without external support there is a real risk that the structural changes or systems improvement needed will not be delivered.
Perhaps just as importantly many of the interims we deploy bring other qualities that are easily overlooked. They can bring a fresh perspective, energy and a calm authority that comes from operating at the most senior levels in their executive careers before becoming an interim. Their focus is on delivering results and the best can manage but don’t get bogged down by the politics. At their best they can change fortunes and leave when all the difficult stuff has been done leaving the executive team with a platform to build upon without the burden of association.
But of course, this comes at a cost and the best do cost more in terms of a daily rate. We have seen some clients understandably looking to reduce the day rates and also to try and opt for a fixed term contact as a means of reducing cost. The latter may seem like the most commercially beneficial and risk-free option but that’s not always the case. While fixed-term contracts can provide stability and compliance it is very difficult to attract top talent. Day rate interim management contracts offer much more flexibility and therefore cost control. There is also a wider talent pool and array of technical skills that can be mobilised quickly in the interim space.
As one of our most experienced interims reflected, “The key to gaining value for money from interim placements is to be crystal clear on what you want them to deliver and by when not on the day rate. Too often the work specification is too vague, and this can lead to scope creep as the initial brief becomes lost in the day-to-day issues or next crisis!”
The right approach depends on what you need to achieve and in today’s environment, value can’t just be about cost - it’s about delivery, speed, and impact.
Vanessa Gabriel-Penha is Senior Consultant, Executive Interim at Faerfield Limited.
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