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Interim vs Permanent Finance Hires: What's right for your business?

Having specialised in placing senior interim accountants in Yorkshire for over 20 years, I’ve seen all kinds of reasons behind the need for a business to recruit new finance staff but how many of those companies made the right call….at the right time? The decision to hire an interim or permanent finance professional is a significant one, and it largely depends on the company’s specific needs, objectives, and resources. Both types of finance jobs have distinct advantages and can provide different types of value to an organisation. In this article, I’ll explore the key benefits of hiring an interim vs a permanent accountancy and finance professional. ​Understanding the Roles: Interim vs. Permanent Finance Professionals Before diving into the benefits, it's essential to understand the fundamental differences between interim and permanent. Interim Finance Professionals: are typically brought in on a short-term basis to address specific challenges or temporary gaps within a company.These professionals are usually highly experienced, often with a broad skill set, and are capable of stepping into a role quickly. Interim finance professionals might be hired for a variety of reasons, including covering for a permanent employee on leave, assisting with a specific project, managing transitions, or handling urgent financial needs. Permanent Finance Professionals: on the other hand, are hired to take on a long-term role within the company. They typically have a more stable and ongoing relationship with the organisation, working closely with other departments and employees to ensure the company’s financial health is maintained and improved. A permanent finance professional is expected to provide continuous support, helping shape long-term strategies, and ensuring business growth and stability. ​With these definitions in mind, let's explore the benefits of each type.​Benefits of Hiring an Interim Finance Professional 1. Flexibility and Immediate Impact: One of the most significant advantages of hiring an interim accountancy/finance candidate is flexibility. Interim candidates are typically available to step in quickly, often within a matter of weeks or even days. This is especially beneficial for businesses that need immediate support within their finance function due to an unexpected situation or an urgent financial project. For example, if a company faces a sudden crisis, such as the resignation of a senior finance executive, a business owner might need an interim finance leader to fill the role temporarily. The interim candidate can quickly assume responsibilities, such as overseeing cash flow management, financial reporting, and budget planning, allowing the business to continue operating smoothly during the transition period. Additionally, interims can be engaged for specific, short-term projects, such as managing the implementation of a new financial system, preparing for audits, or dealing with temporary increases in workload. The flexibility of interim senior finance roles makes them ideal for businesses looking to meet specific short-term goals without the need to commit to a permanent hire. ​2. Cost-Effective for Short-Term Needs Hiring an interim accountant can often be more cost-effective than hiring a permanent one, particularly for short-term or project-based needs. Interims are typically paid a daily or weekly rate, which means businesses do not need to cover the long-term costs associated with a permanent employee, such as pensions, healthcare, and other benefits. For companies operating on tight budgets or with fluctuating financial demands, hiring an interim professional can be a way to access high-level expertise without committing to the ongoing costs of a permanent hire. This is particularly valuable for small and medium-sized enterprises (SMEs) that may not have the financial capacity to employ a full-time senior finance professional with the expertise required to fulfil their requirements. ​3. Expertise and Specialisation Interim finance professionals often bring a wealth of experience and unique knowledge to the table. Many have worked across various industries, providing them with a broad understanding of different financial challenges and solutions. Their expertise enables them to quickly assess the situation, identify the key issues, and implement strategies that can drive immediate improvements. Whether it’s managing complex financial reporting, overseeing mergers and acquisitions, or implementing cost-saving initiatives, interim finance professionals possess the necessary skills to tackle these challenges quickly and effectively. For businesses that require specialised financial expertise on a temporary or interim basis, hiring an interim professional can be a great solution. ​4. Support During Transitions and Change Businesses that are going through periods of change—whether it’s a merger, acquisition, restructure, or IT system upgrade—can benefit from the support of an interim finance professional. These transitions often require specialist knowledge to ensure a smooth process. They can help with tasks such as conducting due diligence, integrating financial systems, or managing financial communications with stakeholders. Their ability to handle high-pressure situations and adapt to challenges quickly makes them invaluable during periods of change. ​5. Reduced Recruitment Risk If a business is uncertain about hiring a permanent employee or simply wants to test the waters, hiring an interim can reduce the recruitment risk. They are often hired for their ability to deliver results quickly, without the long-term commitment that comes with a permanent role. If the business is not satisfied with the interims performance, they can simply replace them without the added complications that come with a permanent hire. This can be especially important for businesses that may be unsure about the long-term financial strategy or need time to evaluate the suitability of a new hire before committing to them permanently. ​Benefits of Hiring a Permanent Finance Professional 1.Long-Term Strategic Support ​A permanent finance hire, hopefully, becomes an integral part of the company’s long-term strategy. This individual will be responsible for the company’s ongoing financial health, working closely with management to shape business decisions, optimise financial performance, and align the company’s financial goals with its strategic objectives. Permanent finance professionals can help businesses by offering consistent advice on areas like tax planning, financial forecasting, and long-term investment strategies. They can also assist with employee development, fostering a strong financial team, and providing training and mentorship to junior staff members. For businesses that require a stable, long-term financial presence to guide growth and sustainability, hiring a permanent finance professional is often the best option. ​2.Stronger Company Culture and Relationships One of the key benefits of having a permanent employee is their ability to build strong relationships within the company. Unlike interim professionals, who may only interact with a limited number of people during their contract, permanent professionals have the time to embed themselves within the company culture and form deeper connections with other employees, teams, and departments. A permanent finance professional can work collaboratively with other departments, helping to align financial strategies with broader business objectives. Over time, they develop a deep understanding of the business’s operations, challenges, and goals, which allows them to make more informed decisions and offer tailored financial advice. ​3.Continuity and Stability Hiring a permanent finance professional ensures continuity and stability in your company’s financial management. This is especially important for businesses that require ongoing oversight and management of financial processes. A permanent professional will have a long-term commitment to the company’s financial success, ensuring that key financial tasks—such as budgeting, reporting, and compliance—are consistently handled. Stability is particularly important businesses that require ongoing financial planning and risk management. A permanent finance professional will be able to navigate both the everyday challenges and the long-term issues that might arise, such as economic downturns, changes in regulation, or shifts in market conditions. ​4.Deeper Understanding of the Business A permanent finance hire has the time to truly understand the intricacies of the business. Over time, they become deeply familiar with the company’s goals, challenges, and nuances, which allows them to make better financial decisions and anticipate potential issues. This in-depth knowledge helps to align financial decision-making with the company’s vision, ensuring that financial strategies support business growth in a meaningful way. Businesses that operate in competitive industries or rapidly changing markets can benefit from having a finance professional who is attuned to the local market conditions and the specific needs of the business. ​5.Employee Retention and Development A permanent finance professional is often tasked with developing and mentoring junior employees. By investing in the development of the finance team, they help ensure that the company has a pipeline of talent to support future growth. For businesses that plan to scale or expand their operations, having a permanent finance professional who can recruit, train, and develop a team of skilled finance staff is a key advantage. This helps build a more robust and capable finance function within the company, which is especially important for long-term success. ​​​Interim vs. Permanent Finance Professionals Both interim and permanent finance candidates offer unique benefits to businesses, and the choice between the two largely depends on the company’s specific needs and goals. Interim finance professionals provide flexibility, expertise, and cost-effectiveness for businesses that need short-term support or specialised assistance. They are particularly well-suited for project-based work, transitional periods, or covering gaps in the workforce. On the other hand, permanent finance professionals offer long-term strategic support, stability, and the ability to foster strong relationships within the company. They are ideal for businesses seeking continuous guidance on financial matters, long-term growth, and the development of a cohesive financial strategy. ​Ultimately, the right choice for your business will depend on factors such as the scope of the work required, the financial health of your organisation, and your long-term goals. By carefully weighing the advantages of both options, you can make an informed decision that best supports the success of your business. ​Need help deciding whether an interim or permanent finance professional is right for your business? At Sharp Consultancy, we’ve been advising and supporting businesses across Yorkshire for over 30 years—matching them with the right finance professionals at the right time. Whether you need immediate interim support or are planning a strategic permanent hire, our teams in Leeds and Sheffield can guide you through the options. 📞 Call us today on 0113 236 6300 / 0114 261 1700 or 📧 email stuartdouglass@sharpconsultancy.com to discuss your hiring needs with one of our expert consultants. ​Sharp Consultancy is a specialist finance and accountancy recruitment partner for businesses across Yorkshire and the North East Midlands. With a deep understanding of the local market and access to a network of high-calibre professionals, we help organisations secure the talent they need to succeed. If you're looking to strengthen your finance team, CONTACT US to speak to one of our expert consultants to find out how we can help.

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THE REAL CHALLENGE IS ONLY JUST BEGINNING

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As we move towards Step 4 in the Government’s Roadmap to easing lockdown, businesses are looking at how they best navigate the coming months – and even years – as they consider what the new normal will be in terms of their day-to-day operations.

Whilst there is still, inevitably, much uncertainty about what the future holds – not least about whether restrictions will indeed be eased further in the next few weeks – organisations throughout the region will have, for some time now, been planning how they will move forward. Particular attention will be given to how they will look to manage their employees and the fine balance that needs to be bridged between continuing to work from home and a return to pre-COVID operations.

For some, ourselves included, the return to offices and workplaces began last summer when restrictions initially started to ease but for many, perhaps due to circumstances surrounding the nature of the business or a desire to wait for more certainty before making a commitment, it is only now that firmer decisions are being taken about what the way forward will look like.

In some ways, whilst hugely disruptive, and for some hugely devasting, the short, sharp shock of the country being forced into lockdown in March 2020 was an easier situation for employers to handle than the one currently being faced. There was no choice. The situation was at least clear; businesses had to do whatever was needed to get their teams set up and running from home as quickly and as efficiently as they possibly could. And whilst the optimists amongst us possibly viewed it as a temporary situation lasting (hopefully) a matter of weeks – at worst months – even the most pessimistic were unlikely to have envisaged that we would still be conducting meetings via Zoom or Teams and may not have seen colleagues in person in well over a year (or at all if they started a new role!).

The question of ‘what happens next?’ is not one which there is a universal answer with different approaches being considered and for some, decisions not being taken until well into 2022. Working from home has, in the most part, been quite successful; and even for those businesses for whom pre-COVID it would not have even been on the table for discussion, naturally the questions are now being asked – do we even need to return to the office at all?

Employers are faced with several potentially tricky dilemmas. Some employees may be desperate for a return to normal workplace life, others may have grown accustomed to the flexibility and more relaxed work life balance of being based at home. Some industries – such as manufacturing - may have to also consider how they handle situations where some roles are clearly defined as workplace-based versus those where they could be done remotely. Do they take a one-size-fits-all approach or do they try and meet the needs of their employees on an individual basis and if so, where do the compromises need to take place and how do you build unity and inclusion?

In the most part, there has been a collective ‘get through it the best we can’ spirit from both employers and employees. However, a more permanent shift will throw open several other considerations including the provision of suitable equipment, health and safety reviews and security measures to protect sensitive information.

From a recruitment perspective, the decisions that are made now could have a significant impact on a company’s ability to attract and retain talent moving forward. Those that feel unhappy with the outcome – whether that is a return to the office or continuing to work from home – may find it is the push that they need to look for an alternative role. And given that all businesses, even those of similar sizes, in the same sectors, even direct competitors, will all potentially be putting in place slightly different arrangements, factors which may previously have not even been part of the decision-making process could now the very thing which tips the balance in favour of one job offer over another.

There is also potential to muddy the waters when it comes to identifying what the ideal candidate looks like when briefing a new recruitment assignment. Previously simple criteria such as ‘a commute of no more than an hour’ suddenly no longer matters when everybody in the organisation is home-based, potentially opening up a much larger pool of candidates from which to draw from. However, this does not necessarily make the process any easier and without real clarity from the outset, it will likely, lead to a blurring of lines as a more varied range of decision-making factors come into play.

Employees also have questions that they need to ask themselves. Creating a makeshift work area within the family home on a temporary basis is one thing – but if the arrangement becomes more permanent, what do they need to have in place? Is there the space available to create a dedicated workspace on a long-term basis? There will also undoubtedly be less ‘turning a blind eye’ to a colleague’s poor wi-fi connection as employers, team members, clients and customers become less forgiving than they were towards those ‘making the best of it’ in difficult circumstances.

In addition, they need to look at how their career prospects may potentially be affected. Do they possess the necessarily skills to effectively manage their teams remotely on a longer-term basis? How to do they motivate and inspire when they may work alongside some team members day-to-day whilst others are based at home? Ensuring a consistency of message across a more disparate team or organisation will be a new test of leadership for many and one which will require those looking to make the step up into a more senior role or move roles to have a robust, yet flexible, approach to making it a success.

Unlike the initial plunge into lockdown, the emergence will not be done overnight. It could be many months, if not years, before we can fully regain a sense of normality. I am often asked if I expect that we will all eventually return to a more traditional Monday to Friday 9-5 office-based culture; my reply is always the same “certainly not any time soon”. Indeed, the coming months and possibly years, will most likely see businesses try and piece together the different steps, as if they are trying to master some tricky choreography, as they attempt to settle on the ideal solution.

During the first lockdown I heard a phrase which has stayed with me during these times; we might all be in the same boat but we are not sailing the same sea. That certainly rang true however now it is not just the sea that is different, the boats are too.

Sharp Consultancy specialises in the recruitment and executive search of finance and accountancy professionals. With offices in Leeds and Sheffield our highly experienced team of consultants recruit for temporary, interim and permanent roles across the full spectrum of positions throughout Yorkshire and beyond. CONTACT US today and speak to a member of our team about your recruitment needs or next career move.