Benefits of Interim Management
Questions answered to understand the benefits Interim Management for a business:
- What is interim management?
- When to use interim management to help your business?
- What are the benefits of interim management?
- What are the trends in interim management in Belgium?
- What differences between hiring an employee or an interim resource?
- What are the experience of Minds&More in interim marketing and sales?
What is Interim Management?
Filling a resource, expertise or skill gap in a business organization during a temporary time period. Today interim management has become widely accepted in Belgium. Interim management has become a positive and strategic decision for companies.
When does a business need Interim Management?
An increasing number of businesses in Belgium rely on interim management services to support their business growth goals and get the organizational capabilities that they need.
Your business may need interim management services due to any of the following situations:
- Address rapid business growth, and facing shortage in resources in your organization
- Replace a gap in the organization due to a leave, absence, or maternity
- Require specific expertise or resources for a project
- Access to expertise that does not exist within your organization today (i.e. digital marketing)
- Launch of new product or service and needing additional short-term resources
- A major change in your organization (i.e. business acquisition, merger, restructure, ..)
- Inability to hire a permanent resource and filling this with temporary resource(s)
Interim management exists for different roles be it in marketing and sales, finance and many others.
Sales & Marketing is the second most requested function in Interim Management
Our experience at Minds&More is that the average duration of interim assignment in marketing is generally around six months but there are cases when these interim assignments last longer.
Today Minds&More provides over twelve types of interim marketing and sales services (including MARCOM interim, digital marketing interim, segment manager interim, product manager interim, key account sales interim, trade marketing interim, CRM manager interim, pricing manager interim, and more)
Over the past five years in Belgium, the demand for interim management has grown by 43%.
Last year interim providers experienced a 13% increase in demand for their interim services.
The business case for an interim management
There are both qualitative and financial elements to consider:
Qualitative benefits of interim management:
- Access expertise from the interim manager (i.e. in marketing or sales)
- Be able to be quickly operational and short ramp up
- Good mix of pragmatism and share relevant experiences that can be applicable and deliver positive impact for your business
- Provide a neutral view and objective perspective
- Provide a new perspective to the organization and often fresh ideas to doing things
- Teach others in your organization while he/she is on the job
Financial benefits of an interim manager:
Companies in Belgium need to consider the following employee costs, that go beyond the gross salary:
- Gross salary
- Social charges
- Recruitment costs for new employee
- Waiting period until the new employee arrives and time for this new hire to be up to speed and contributing to the business (3 to 6 months)
- Company car and related costs
- 13th month, bonus, primes
- Pay for days sick
- Training costs
- Termination costs if no good fit or need to stop collaboration with this employee
By taking the monthly gross salary and multiplying this amount by twenty, a company has estimate the total annual cost that takes into account some of additional costs listed above beyond the gross salary. For example if the employee gets a 5.000 euros gross salary per month, this would represent a minimum total cost of 100.000 euro to the company.
Versus an interim resource, where the cost consists of:
- A daily rate
- Company gets charged only for days worked
- Low or short ramp up period of the interim resource given their experience
- Gain other benefits from the interim management provider (in the case of Minds&More we provide quality assurance, access to a relationship manager, make available other expertise to answer questions, and clients can leverage our conference rooms)
Companies have expressed that they find the total cost of an interim management to be very competitive.
Case study – Digital marketing employee versus interim management in Digital Marketing
For a Digital Marketing Manager, the average salary in Belgium is €58,455 (source Payscale 2019), using our X20 factor that means to the employer the direct cost of this employee €97,425. After taking into account vacation, days sick and other factors, recent research shows that the average Belgian works on average 24 hours per week, that is 63% of the 38-hour weekly maximum (source Brussels Times and Acerta , August 2019)
Taking the company annual cost of €97,425 that results in a weekly cost of €1,873 euros. When we compare a classic employee costs to those of interim management rates, companies will see the benefit that an interim management solution provides (taking into account also the immediate impact of interim resource, time of impact, the flexibility in duration, service level guarantees, how the cost appears on balance sheet and more).
When a company is facing an immediate resource gap in its organization or faces a crisis or has an important project that needs to get done – then the cost of failure far outweighs the cost of hiring an interim manager !
89% of companies surveyed state that interim management provides “a good ratio of quality to price” (2)
How is interim management different than consulting?
As interim managers integrate into the business organization, they assume the day to day operational aspects for the company (whether in a marketing role, sales, or other). Consultants are generally external resources that do not formally integrate into the organization. Consultants are not in the day to day operational aspects. Consultants often involved in a strategic assignment or to provide answers to specific questions. Consultants bring benchmarks, data, models, tools, processes and recommendations to companies.
What questions to ask your interim service provider?
Link to checklist and questions you may want to ask interim service provider to ensure obtain relevant quality solution.
Interim management provides many advantages and benefits to a company based in Belgium. You can access specific expertise to fill a gap in your organization or project and gain quickly positive business impact. Interim management covers lots of functional roles – Finance, Marketing and sales being the most common ones. Minds&More has been providing interim management in marketing and sales for over 10 years. Today we fill over 60 interim assignments every month in specific areas within marketing and sales both for B2B companies and for B2C companies.
Contact us with your questions on how interim management can create value for your company and fill a need you have for your organization.
Source FEDERGON (1)
Study FEDERGON and Hogeschool Universiteit Brussek of 46 companies (2)
Discover the interim services we offer in marketing and sales
Our relationship managers are there to help on your interim service needs
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