Insights

By Volker Rojahn, Partner DACH, Beaumont Executive Interim Management

Interim management continues to be more and more important across Europe in recent years. However, in each country there are different approaches to this growing leadership solution that are in response to market size and goals of clients. The following article provides an overview of the status, market significance, areas of application and, last but not least, the very different pricing approaches in the individual countries. Here are the key areas of focus in some major markets:

Germany and the United Kingdom have the most established markets for interim management solutions. Costs in these two markets are also comparatively high. The German market is characterized by a wide variety of application areas, particularly in the industrial sector, where interim managers are often used for transformation projects, crisis management and operational tasks. Other important areas of application include financial and human resources management, where they play a key role in complex M&A processes or in the restructuring of companies.

In the UK, interim managers are often sought after in finance roles, particularly when taking on CFO roles or optimizing financial processes. The public sector in the UK is also increasingly using interim managers for change projects and to promote the digitalization of administrative functions. There is also a strong focus on IT projects in the private sector, particularly related to digital transformation.

A different picture emerges in the Benelux countries. The Netherlands offers a mature and large interim management market. As the largest market in the region, The Netherlands interim market is characterized as a mature market with high acceptance of interim solutions overall, with an approximately 10,000 active interim managers.

Belgium is experiencing moderate growth in the sector with increasing use in crisis and restructuring situations. Belgium is a significantly smaller market but a growing market with around 3,000-4,000 interim managers.

Luxembourg, despite its small size, serves a specific niche, especially in internationally oriented projects and in the financial sector. While a small market, it is highly relevant for international companies and specifically with specialized projects in the financial services sector. Even if the absolute number of interim managers is small, the international orientation of the country plays an important role, which means that highly qualified interim managers are in demand.

Overall, the picture in the Benelux countries varies. The Netherlands offers a mature and large interim management market, whereas Belgium is experiencing moderate growth with increasing use in crisis situations and restructuring, while Luxembourg, despite its small size, serves a specific niche, especially with internationally oriented projects and in the financial sector.

France and Austria are seeing increasing growth in the interim market recently, with the French market catching up with Germany and the UK in recent years.

In France, interim managers are particularly active in the areas of operations and supply chain. The country is known for its highly industrialized economy, which is why there is a need for managers who can improve the efficiency of production processes and optimize supply chains. Financial and human resources management also play a role, especially in companies that are in transition or growth phases.

Austria offers a well-connected, albeit comparatively smaller market with a strong focus on medium-sized businesses and international projects. A key special feature is the strongly networked market (including between interim managers and specialized intermediaries or agencies such as Beaumont Executive Interim Management with a clear focus on medium-sized businesses. At the same time, many interim managers also have international experience, which is particularly interesting for companies operating globally. The increasing dynamism in the economic environment and the trend towards digitalization are driving the need for managers with this expertise.

For comparison, interim solutions in Spain and Italy are still developing. Here, assignments in smaller companies dominate, while in France, Germany and the United Kingdom, larger companies also make up the largest share of interim mandates. Spain and Italy are two growing markets, where interim managers are increasingly working in small and medium-sized companies where the focus is on restructuring and corporate development. The economies of these countries, while heavily influenced by SMEs, show a growing need for external experts for growth and internationalization. Interim managers are often employed in transition phases, particularly in family businesses.

In Poland and other Eastern European countries, interim managers are often active in IT and technology projects as well as in the manufacturing sector. The region is experiencing strong growth in these areas, resulting in increasing demand for managers with experience in digitalization and technological modernization.

In Switzerland, interim management plays an important role within companies, and the market has grown considerably in recent years. The market for interim managers has been well established, especially in internationally operating companies that rely on flexibility and specialized expertise. The financial, pharmaceutical and IT sectors, as well as restructuring and transformation projects are also particularly active for interim solutions. Although the market is smaller than in the Netherlands or Germany, remuneration and acceptance of interim management are at a high level in Switzerland.

From market structures to daily rates in a European comparison

Daily rates for interim managers in Europe vary widely, from a day rate of EUR 500 in
countries like Hungary to EUR 2,300 in countries like Switzerland or the United Kingdom.

Highly developed markets such as Germany, Sweden and the Netherlands also offer above-average compensation, particularly in specialized industries such as IT, finance and restructuring.

Special factors affecting daily rates:

• Experience and specialization: Interim managers with highly specialized expertise (e.g. in IT, finance, change management) achieve higher daily rates.
• Industry: Industries such as finance, pharmaceuticals and IT generally offer higher daily rates because specific specialist knowledge is particularly in demand here.
• National economy: Countries with higher costs of living (e.g. Switzerland, Norway) generally have higher daily rates.
• Market development: In more mature markets such as the Netherlands, Germany or Sweden, daily rates tend to be higher than in emerging markets in Eastern Europe.

Summary

Overall, interim management is becoming more important in Europe and is becoming increasingly diversified. Both the areas of application and the typical clients vary depending on the country and economic structure. The main areas of application of interim managers are strongly influenced by the respective economy and the specific challenges of a country. While Germany and the United Kingdom use interim managers primarily in crisis situations and financial management, the focus in Southern Europe and Eastern Europe is increasingly on restructuring and technology projects. Switzerland, on the other hand, benefits greatly from interim experts in the financial sector and in corporate strategy.