Interim managers are the ‘solution’ to Germany’s bustling labor market

February 23, 2015 | by | 0 Comments

Germany’s chaotic labor market problems could be solved by hiring interim managers, a business expert has claimed.

The Eurozone’s economic powerhouse has benefited from a surge in unskilled cheap workers since the collapse of communism in the late 1980s.

But firms are now finding it increasingly difficult to hire the correct employees when vacancies arise which require experience.

HR experts believe that the answer for small and medium enterprises (SMEs) is to hire interim managers to target the position.

Anita Abele from Redner Agentur said: ‘The skills shortage due to the demographic trend is becoming more significant and the markets are constantly gaining momentum. Politics, business and society must therefore make more concerted efforts to find suitable solutions in order to combat the challenges described above.

‘In a world which is turning ever faster, we need people who have made it their mission to support the companies with this momentum. Interim managers are used to reacting quickly to new environments and rapidly applying their expertise to various tasks.

‘Interim management comprises the temporary employment of external managers to bridge vacancies, to build up knowledge which is missing or to combat crisis situations (e.g. the need for restructuring or financial recovery). Medium-sized German businesses, in particular, face demanding challenges in the light of increasing globalisation.

‘By employing experienced interim managers in a targeted manner, companies are not only able to overcome pending obstacles efficiently, but also adapt to future challenges in the long term. The competitive advantage is that a company is able to draw on the right highly-qualified executives and specialists quickly.’

Anita said there are four common situations where intermin managers can be highly effective.

  • Classic vacancy: manager on a limited contract is brought into the company to fill a vacant position
  • Work overload: available resources are not sufficient for ongoing and/or new projects
  • Restructuring: activities such as short-time work, lowering of costs or company closures
  • Changes in corporate structures: set-up and/or modification of corporate structures and/or processes

Anita said that interim managers require a comprehensive management qualification and long-term professional experience. alongside an excellent specialist knowledge, core skills such as entrepreneurship, situational management experience, persuasiveness, flexibility, resistance to stress and composure are also needed.

She added: ‘This should be complemented by a talent for being able to integrate quickly and efficiently into the most varied of structures and/or cultures. Companies are therefore well-advised to use experienced interim providers when selecting suitable candidates. The pioneers in this industry can already identify the best candidates and have a well-stocked talent pool at their disposal.’

According to a recent AIMP study, there were around 16,600 interim managers working in Germany in 2014, whereby the turnover volume will increase according to a forecast by DDIM (2014; 1.35 billion euros; 2015: forecast 1.5 billion euros). This aligns with the estimation from Ludwig Heuse: the interim management market is developing steadily according to our current study, both from the inquiries and from the workload of the interim managers.

Anita said: ‘In summary, it should be noted that interim managers should be receptive to and suitable for the constant transition, because in practice there is no honeymoon period – such as a longer settling in period. Temporary managers must rather completely and satisfactorily solve their customers’ problems within a defined time frame (generally three to twelve months).

‘The advantages for interim clients are obvious: Immediate availability of management experts; no long-term contractual obligations; defined, measurable project aims; clear budget and exact timescale.

‘In 2015, interim management is increasingly becoming one of the mega trends which will shape the workplace and the working world in the future: diversity, transparency, autonomy, democracy and collaboration. For companies in need and providers, it is currently a matter of developing the utmost professionalism from existing experiences in recent years.

‘This management approach is therefore an obvious option which could entail opportunities for distinction and unique selling points, particularly for innovative small and medium-sized enterprises (SME): although this management approach is widely known in German corporations, it remains (at least today) unchartered territory for the German SMEs. Management summary: In a heightened, global competition and in view of an increasing shortage of skilled labour in Germany, a systematic, targeted use of interim management can contribute to the creation of competitive advantages, in particular for small to medium-sized businesses. As a result, this management approach is a strategic option, which offers SMEs the opportunity for distinction and to extend a flexible and sustainable management structure.’

 

Category: Business

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