In the first of our Boyden Brief roundtable sessions for 2022, we share an overview of the results from our poll questions on the drivers of interim requirements, market activity and the continuing impact of IR35.
Since the start of the pandemic and hopefully now endemic, Boyden UK created a virtual meeting place for the Boyden team and our community of interim managers. We often asked a series of questions which provided us with a good barometer of what is happening in the market.
Boyden is an expert in providing executive leadership solutions, and our clients call upon us to assist them in assessing their leadership teams, as well as recruiting executive hires on a permanent and interim basis. When it comes to the use of Interim Management, the needs are often driven by growth and expansion or a need for rapid restructuring. Typically, when it comes to the hiring of an interim executive unsurprisingly most hires are initiated by the CEO or investors/PE backers, 35% and 30% respectively. 20% of hires are initiated by a member of the senior leadership team and only 5% of hires are initiated by the HR department, the remaining 10% being initiated by a parent company.
We are pleased to report that 40% of requirements in Q1 2022 were due to growing pains from faster than expected growth, followed by 35% to support on delivering operational efficiencies. Interestingly only 10% of interim roles were to support strategic reviews of a business, but we expect this to increase over the coming months as many businesses grapple with the onslaught of price increases across every aspect of their business.
We are pleased to say that 80% of our audience found Q1 2022 busier or the same as Q4 2021, with only 20% of our audience finding the market quieter. This is good news for the UK interim market because Q4 2021 was a busy end of the year for Boyden, despite a very short-lived downturn in September and October.
Whilst IR35 has created a greater administrative burden when it comes to carrying out a status determination assessment, Boyden is pleased to highlight that the IR35 status has not impacted whether a business hires an interim or not. In fact, we have not had any client decide not to hire because a role was deemed as inside IR35. We are seeing a slight increase in fixed-term contracts but for the most part our interims continue to be engaged on project work. Boyden are well practiced at taking a client’s project through an IR35 status determination, and we would encourage any clients who would like support with the IR35 determination of a project to reach out to your UK interim consultant.