Fixed term contracts offer peace of mind that somebody qualified is in position and bound by your organisation’s terms and conditions. They cannot leave without notice and you have mechanisms available to encourage them to deliver against their objectives.
However, if you’re finding that fixed term contracts are becoming increasingly expensive and inflexible, would an interim manager be a better option for you?
What are the differences?
Interim managers are hired on short term contracts to fulfil specific objectives. They are paid a day rate and are not entitled to sick pay or holiday leave. This means that they will be 100% focused on your job while they are in the post. Interim managers offer exceptional flexibility as you only employ them when they are needed.
Fixed term contracts, on the other hand, guarantee an individual a salary for the duration of their contract, regardless of whether or not the work exists to justify it. Fixed term contracts do not allow you to respond quickly to changing priorities, accepting that you may needlessly employ someone when there is insufficient work for them to do.
Which is better?
Many highly skilled interim managers operate their own limited companies and enjoy freelancing in different organisations, gaining and sharing knowledge and experience to benefit their employers and themselves. These individuals are unlikely to want to commit to a fixed term contract, instead enjoying the flexibility of selecting their own positions and being able to move at will. For more information on interim executives and managers, visit the IIM.
Where specific skills are required for a short period, an interim manager is by far the best choice. If, however, you have a long-term need for a skilled manager, employing someone on a fixed term contract guarantees that they will be there when you need them and doubtlessly offers better value to the organisation.
In conclusion
There is a place for both interim managers and fixed term contracts in the modern business. The trick is applying the most appropriate recruitment model to each vacancy.