Interim government employment once appeared to be a permanent part of the job market, but Federal cutbacks are taking their toll as department heads wait for spending reviews before committing to hiring any new interim employees. According to Charles Wilson, the head of the public sector at Penna Interim, the effects have been devastating, “with no interims being taken on unless it’s for a business-critical or front-line post. In large government departments taking on an interim means going directly to the director-general of finance.”

The same mentality is affecting many public sector non-permanent positions, and according to Jamie Houlder, the Director at the Hays Public Services, the “reluctance to take on interims to fill business-critical positions” has increased because employers simply ask their existing staff to absorb the workload while they search for permanent replacements.
The majority of the part-time/contract jobs have fixed-term contracts that range from 3 to 12 months, and are either employed in IT projects or serving as “seat warmers” while recruiters search for more qualified candidates. Currently, this market is worth £300-500 million per year, although the exact figure is hard to calculate because many such appointments are informal and made through word of mouth contacts.
Most interim employees are usually quite qualified – if not over qualified – for positions they hold and often have decades worth a private sector experience to contribute. Even though there are claims that some interims make more than the Prime Minister, their pay cannot be directly compared with salaries that include benefits, insurance, retirement plans and a lower overall tax rate.
Another threat to interim jobs are the many soon-to-be redundant civil servants who are trying to stay in the work force by re-branding themselves as interims. Interim jobs in the IT field, CRM and procurement seem to be the most targeted for this type of strategy.
Experts are also noticing that the pay interims usually command is suffering as well. The director of BIE, Steve Dengel, says that even though interims are far cheaper than “calling in one of the Big Four accountancies as consultants,” but even that hasn’t stopped employers from tightening down on their budgets by designing contracts with terms that have performance stipulations. Dengel explains, “I suspect we’re going to see price reductions that change the way terms are paid… we recently placed an interim chief executive in a quasi-public body, and while the day rate has remained steady it’s been done on the agreement that 20% of their pay will be held back until they’ve hit agreed targets.”
However, some interims are becoming more valuable, especially those skilled in cost reductions, lean manufacturing solutions and change management. Such project managers have seen up to a five-fold increase in their pay rate, even in the public sector. The managing director of Interim Partners, Doug Baird, explains that “demand for lean and six sigma specialists is likely to grow. These project directors have a really specific skill-set, so demand for them can increase at the same time as other consultants are facing cuts.”