Key Benefits and Challenges of Interim Management

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December 20255 min read

In business today, the only certainty is change. UK organisations are feeling the pressure more than ever. Digital acceleration moves fast. Restructuring cycles disrupt. Regulations intensify. Leaders are left needing reinforcement now. That is where interim managers step in, alongside other flexible solutions such as temporary recruitment.

Interim leaders are brought in to deliver rapid impact. They stabilise operations and guide organisations through periods of uncertainty. Companies are looking for senior professionals who can hit the ground running.  

Interim management offers clear advantages. It also brings challenges that businesses must understand to get the most value. This article explores both sides: the benefits of hiring an interim manager and the pitfalls to avoid.  

By the end of this article you will understand:

  • What interim management is and how it differs from permanent leadership.
  • Why interim management is rising in the UK, including the impact of IR35 and contracting models.
  • The key benefits of hiring an interim manager, from stabilising operations to accessing senior expertise.  
  • The main challenges organisations face, such as scope drift, cultural resistance and onboarding hurdles.  
  • Common mistakes to avoid when engaging interim talent, with practical advice for smoother outcomes.
  • Answers to frequently asked questions, including costs, duration and how interims support change.

What is Interim Management?

Interim management is the appointment of senior professionals on a temporary basis. They lead projects, manage transitions, or stabilise organisations in times of challenge. These professionals usually operate at senior leadership level. They bring decades of expertise and deliver immediate results.  

Common interim roles include:

  • Chief Financial Officer (CFO)
  • Chief Operating Officer (COO)
  • Head of Transformation
  • Programme Director
  • Regulatory or Compliance Lead

Interim managers take direct responsibility for delivery. They embed themselves within the organisation and drive outcomes.

Interim vs Permanent: What’s the Difference?

When organisations face leadership gaps or shifting priorities, they often choose between bringing in interim talent or hiring a permanent leader. Each plays an essential role, but with distinct purposes. Here are the main differences between interim and permanent managers to help you secure the right leadership when you need it.

Interim Managers:

  • Project-based engagements
  • Deliver rapid impact (transformation, crisis response)
  • Higher daily pay, but without the security or perks of a permanent role
  • Highly objective and less influenced by internal politics  
  • Can start immediately

Permanent Managers:

  • Long-term commitment
  • Focus on leadership continuity and culture building
  • Salary with benefits
  • More embedded in the organisation
  • Hiring the right permanent fit takes time, interims fill the gap fast

Interim professionals bring speed, focus and objectivity during times of change. They also create stability and lay foundations for long-term growth. Permanent managers build on this momentum, sustaining cultural continuity and guiding growth over time. Choosing the right type of leadership at the right time can greatly boost organisational performance and resilience.

Why Interim Management is Rising

The UK market has unique conditions that make interim management increasingly relevant:  

  • Leadership pressure from digital acceleration and restructuring cycles.  
  • Governance and regulatory readiness demanded by FCA/ PRA regulated sectors.
  • Competitive landscape where delays in senior hiring slow down change.
  • Agility premium: Organisations value objective decision-making and rapid problem-solving.
  • Contracting models: PSC, umbrella and fixed-term contracts shaped by IR35 legislation.

IR35 plays a significant role in how interim professionals are deployed.  

  • Outside IR35: Senior interims often bring consultancy-level expertise and structured methodologies.  
  • Inside IR35: Umbrella or PAYE structures can affect cost, onboarding and perceived authority.

IR35 doesn’t define an interim’s value, but it affects contract structure, mobilisation speed and compliance.  

Key Benefits of Hiring an Interim Manager

Here are the key benefits of interim leadership in times of change, from stability to continuity.

Stability in Times of Change

  • Interim managers stabilise operations during turbulence.
  • They protect permanent leadership teams from overload.
  • They maintain stakeholder confidence when bandwidth is stretched.

Instant Access to Senior Expertise

  • Objective decision-making, free from internal politics.
  • Faster decision cycles and candid diagnostics.
  • Valuable for post M&A integration, stalled transformations or complex programmes.

De-Risking Board and Leadership Decisions

  • Interim leaders take ownership of complex risks.
  • Provide governance expertise in crisis or regulatory situations.
  • Support informed decision-making at board level.

Market Intelligence Without Consultancy Costs

  • Bring best practise insights from recent roles.  
  • Provide benchmarking and rapid strategic input.
  • Deliver actionable recommendations without consultancy overheard.

Continuity Across Long-Term Programmes

  • Maintain progress during leadership transitions.
  • Prevent regression in multi-year transformations.
  • Keep strategic initiatives on track.

Challenges of Interim Management

Here are the common challenges of interim leadership and practical ways to address them.

From Ambiguity to Expansion

  • Without defined objectives, projects expand beyond initial goals.
  • Advice: Document deliverables and review regularly.

Cultural Integration & Resistance

  • Teams may feel threatened by a temporary leader.
  • Advice: Communicate responsibilities clearly and sponsor the interim visibly.

Access Gaps & Onboarding Delays  

  • Lack of legacy context slows decision-making.
  • Advice: Provide starter packs, structured onboarding and dashboards.

IR35- Related Mobilisation Delays  

  • Misunderstanding IR35 status can slow onboarding.
  • Advice: Clarify classification early and guide HR/ finance teams.

How to Avoid Common Mistakes When Hiring Interims

  • Hire with clear objectives
  • Treat interim managers as part of the team
  • Onboard effectively to save time
  • Ensure IR35 compliance
  • Plan handover to retain knowledge
  • Work with a recruitment agency to access vetted talent

FAQs

What does an interim manager do?

They take senior responsibility for stabilising, transforming or leading organisations during change.  

When should I hire an interim manager?

When facing urgent transformation, leadership gaps, crisis management or regulatory deadlines, see our previous article on when to hire an interim.

What is the cost of an interim manager in the UK?

Costs vary by role, sector, and IR35 status. Daily rates are higher than permanent salaries but without long-term benefits.  

How can interims leaders help my business?

They deliver rapid impact, objective insight and specialist expertise.

How long does an interim stay?

Typically, 3-12 months depending on project scope.

How do interim managers help with change?  

They provide leadership, framework and experience to drive transformation and stabilise operations.

Interim Expertise, Immediate Impact

Interim professionals are more than a stopgap. They bring stability, accelerate change and provide objective insight when it matters most.

Their success depends on clear mandates, structured onboarding and careful navigations of UK contracting models and IR35 compliance.  

For organisations, the opportunity is clear: define goals upfront, support integration and plan for knowledge transfer. Done right, interim management delivers immediate impact while safeguarding long-term transformation.

Michael Page partners with businesses every day to connect them with senior interim professionals who bring the right expertise at the right time.

Contact us today to discuss how interim managers can strengthen your organisation.

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