Interim careers: Advantages, disadvantages and the financials

In our third article in our four-part series, Nick Allwood speaks to our panel of four specialist interim consultants operating in the HR space – Wendy Ramshaw (ED&I Consultant), Sharon Bloor (Strategic HRD & Consultant), Melanie Bowes (HR Consultant & Coach) and Simon Schumann Davies (People Director) about their views on the advantages and disadvantages of being an interim, as well as sharing their advice around the financial planning needed to make the leap.

You know what it takes to make the transition, and to build your personal brand and reputation as an interim consultant, but have you really weighed up the advantages and disadvantages? Have you considered all of the different bits of financial information you need to know?

The advantages and disadvantages of becoming an interim

For Wendy, the positives and negatives are intertwined, “I love the fact that I am there to do a very specific task as I can take a more direct approach to things. You can sidestep politics and retain that external perspective which is refreshing. However, in my current interim role, I have met some great people and will no doubt miss working alongside them. As an assignment comes to an end, there is of course financial uncertainty but with good financial planning, any gaps between assignments can be managed. As you invest a lot of energy at the outset acclimatising and building momentum quickly, I look forward to having a break to decompress and recalibrate so that I am ready for the next assignment.”

For Sharon, being an interim can often feel like she is constantly starting a new job, “You need to learn all about the organisation, and understand the people, processes, and priorities as quickly as possible. It’s critical so you can make an impact as soon as possible. It can be exhausting but a lot of that can depend on how good the business onboards you and ensures you are informed and equipped with the right information, tools, and people at the right time and that this is consistently reinforced in the early days to help get you up and running quickly.” However, this Is quickly outweighed by the vast range and depth of experience Sharon gets across diverse sectors and functions. “You get to experience and navigate organisational cultures and dynamics enabling you to quickly assess how best to engage and interact with people and politics to get things done. It enables you to build a network and develop relationships as well as your reputation and credibility. It allows you to really hone technical HR/ER and personal skills and attributes across leadership, communication, and emotional intelligence.”

“You do have less stability,” says Mel. “You don't have access to organisational resources (everything from IT to training), there is less visible career progression, and it can be lonely. However, there are so many positives. Flexibility for one. The choice of (varied, interesting, and purposeful work tends to have a more immediate impact. It is also much easier to go in and get the job done without being caught up in organisational politics.”

For Simon there were huge advantages of the transition: “Let’s not be naïve, even after the Corporation Tax and VAT bills have been paid, you can make more money as an Interim than you can on the permanent market, unless you are very lucky. The variety of the work is great and the breadth and depth of challenges you have to deal with are always amazing. Conversely, you can’t ignore stability and the longer-term relationships you make in a permanent role. I have been very lucky in being able to have built several brilliant teams in permanent roles and indeed, there are four HRD’s in the UK who I recruited as HR Officers or Advisors and was able to help in their development. I am immensely proud of that. And yes, within obvious reasons, at least in the permanent market you have some assurance as to when the next pay cheque is going to arrive.”

The financial planning of becoming an Interim

“Coming from a banking and legal environment meant that I knew the financial theory behind becoming an interim,” says Wendy. “What I lacked was the advice bespoke to me and my personal circumstances. I met with a financial advisor and an accountant from my network early on who gave me some great advice. As someone in their late 40’s, things on my mind were pensions, insurance and what my baseline income needed to be to meet my future goals. IR35 is a minefield, and my current contract is within IR35 which is not as tax efficient, but it has been hassle-free using an umbrella company and means, from a credit perspective, I am effectively employed - which was useful when I needed to remortgage. Finding an umbrella company was new to me but this is easy enough and they are all set up to onboard you quickly.”

Sharon spoke to a well-seasoned contractor and took advice from a financial advisor to make sure she had all the right financial protection and insurances/policies in place. “I did some online research round IR35 and consultancy obligations then found myself a really good pragmatic accountant who could help me navigate how to be as tax efficient as possible within the realms of HMRC obligations. They helped me understand the different requirements this type of work would have when it came to mortgages, loans etc). I took out IR35 insurance protection also.

Mel recommends getting a good accountant and financial planner as soon as possible. “I said earlier that I have become my own IT and marketing departments, but I have not become my own finance department.”

“Realistically you have to have professional indemnity and IR35 insurances” – these are a must for Simon. “You can get by on the accountancy side if you buy a package like Xero or Quick Books, but I found that additional advice you get from an in-person accountant to have been invaluable. For at least the first year, forget mortgage applications because no one will give you one until you have a full set of annual accounts. We were lucky and this didn’t apply to us, but I know other Interims for whom it has been a problem. And a surprising piece of advice maybe, but one of the best sources of support and guidance has actually been HMRC themselves. If you can afford to spend an hour on hold waiting to get through, the advice the guys at HMRC give you is actually really incredible. I have also found that other Interims are also incredibly willing to support and share advice.”

Next steps?

Considering making the switch but unsure on what day rate you can command for your role and sector? Download our HR Insights report and salary survey now.

Look out for our next issue where we cover tips to make a successful transition, and how to build your personal brand as an interim specialist.

Get in touch

Should you wish to have a confidential chat with Nick Allwood to discuss the current HR market or your search for work/recruiting into your team, please contact him directly at nallwood@mdhr.co.uk

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