Research by specialist finance and HR recruitment firm, Wade Macdonald, reveals that skill shortages are the primary reason for hiring interims within the HR and finance markets, with 39 per cent of interims hired to fill short-term skills gaps left by permanent staff.
The firm’s 2024 Interim Market Report surveyed over 300 finance and HR professionals across a wide array of business sizes and sectors to discover what trends are emerging in the gig economy and what contribution interim workers offer to the organisations they work with.
The report reveals that 67 per cent of interim candidates required a specific skill or experience to fulfil the requirements of their role. Moreover, 82 per cent of interims are focussed on delivery, and 80 per cent claim ‘results-focussed’ is a key skill they need to complete their job effectively.
Other key reasons for hiring interims include change management related to business structure (37 per cent), covering a permanent hire (35 per cent), and strengthening a project team (29 per cent).
Chris Goulding, Managing Director of Wade Macdonald, comments: “Interim workers offer employers a valuable solution to resolve skills and structural issues in their workforce, whether that be supporting existing teams during tougher periods or engaging in change management work which can rapidly move an organisation forward. The ability to mesh quickly with the team and deliver tangible results are core skills within the interim workforce, and are especially useful when highly skilled employees are in great demand but are hard to come by.”
Gartner’s research suggests that 70 per cent of HR practitioners do not believe they have mastered the skills they need for their current roles, with 64 per cent of managers deeming their employees unable to keep pace with future skills needs.
In the finance sector, 73 per cent of roles are now classified as highly skilled, according to the Financial Services Skills Commission, and 16 per cent of finance professionals, the equivalent of 160,000 workers, require upskilling.
The CIPD also reports, in its most recent research into skills, that competition for talent increased by 70 per cent between 2021/2022, with 60 per cent of respondents stating that talent is more difficult to retain than the year prior. With skills gaps a major issue in both the HR and finance sector, hiring interims can greatly benefit organisations needing to plug the gaps.
Goulding adds: “Being able to temporarily bring someone in who can provide a high-level skill to immediately meet an organisation’s needs is a real asset during a skills shortage. Our research also shows that interims are hired to support business changes or strengthen existing teams, so working as a highly skilled interim could increase employment opportunities for workers as well as benefitting businesses.”
The rise of the interim workforce falls in line with recent changes in workplace structure. 20 per cent of respondents to Wade Macdonald’s research did not plan to become interim workers, but unexpectedly found themselves taking on temporary work due to redundancy or challenges securing permanent positions.
However, many respondents stated they valued the increased flexibility of interim work, with only seven per cent of interim employees required to work in the office every day. The opportunity to work on short-term, impactful projects was also appealing, and interim workers feel able to negotiate higher rates of pay compared to their permanent counterparts.
Goulding concludes: “Workers are increasingly feeling the pressure from the economic challenges of recent years and mass layoffs have forced many to find alternative sources of work. With flexibility and work-life balance valued so highly after the COVID-19 pandemic, it is no surprise that workers are attracted to interim positions.”
“As both workers and employers can see the benefit of interim work, we are likely to see this workforce continue growing over the coming year.”
The post Skills shortages rising in HR and finance with 39% of interims hired to fill gaps appeared first on HR News.