Why Companies Are Choosing Interim Executives Over Full-Time Hires

The speed and magnitude of change in today’s business environment has never been higher. Industry has reached an inflection point at which many organizations are trying to do more with less and technological advances often allow for that option, yet at the same time, economic and political uncertainty make structural change and investment risky propositions.

Making those decisions are company executives, who, not surprisingly, are operating amid some of the highest turnover rates seen at the C-suite level. Companies seeking new leadership frequently get caught between the importance of nailing an executive hire – crucial to both cultural and practical alignment –  the urgency of fulfilling that need and the potential cost of making a mistake. All of this makes hiring the right executive – and bringing them aboard in a timely and efficient fashion – arguably a more critical effort than it has ever been. That’s why hiring at the top needs to evolve to match the change we’re seeing across business.

Why Executive Hiring Has Become a High-Wire Act

Recent estimates put the time required to hire C-suite executives at as much as 120 days, and one Gallup study showed that the cost of replacing an individual employee can range, conservatively, from one-half to two times the employee’s annual salary. No wonder there’s so much trepidation in bringing aboard new leadership: It is often both time-consuming and costly, and even the most intensive searches and vetting processes don’t always produce the intended results.

Now consider the aforementioned speed of change. The aftershocks of COVID can still be felt today, whether in our supply chains or the void left behind by early retirements that coincided with the aging out of Baby Boomers from the workforce. Political upheaval from Ukraine to Taiwan to Iran and the accompanying global economic lurching caused by uncertainty and risk-aversion underscore the importance not only of strong executives but also the kind of dynamic leaders and executive structure that is adaptable to change.

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Executive Hiring That Adjusts to the Pace of Change

Given all those circumstances, it stands to reason that more organizations are in the hunt for effective leadership. It also makes sense that they’re beginning to think differently about the nature of those roles, and of hiring altogether. Demand for top interim executives has surged more than 200 percent since 2020, with the majority of those roles now sitting at the C-suite level. As companies navigate leadership gaps, transformation periods and economic uncertainty, many are turning to interim leaders for immediate stability and impact.

This isn’t a move driven by desperation. Increasingly, organizations across industry are learning all the ways they can benefit from hiring interim executives, particularly through a partner who specializes in the process. Consider the results:

• Onboarding speed.

Temporary executives can be pre-vetted and easily matched to fit from a candidate pool. They can be operationally on site in a few days.

• Practical experience.

Working with the right partner, hiring teams can pinpoint interim executives who have solved their specific problems in comparable settings before.

• An apolitical process.

A third-party vendor who assists in C-suite hiring operates outside the “old-boy network” and provides guidance independent of agenda-driven internal influence that may be resistant to change.

The hiring duration of temporary execs and their capacity can be decided according to project-specific needs.

• Compensation for service.

Interim leaders are paid as mandated, only for days that are actually worked. This can remove some of the risk and reservation around hiring at high-level positions.

Interim Executives Answer the C-Suite Hiring Efficiency Problem

Hiring executives has traditionally been a high-stakes and investment-heavy proposition. But it doesn’t have to be – and, in fact, in many cases it shouldn’t be. Organizations frequently have a pointed problem that needs fixing, and what they don’t need in the moment is a grand visionary or a guru of corporate philosophy. What they need is a problem-solver.

A client that is closing a plant or dealing with a regional compliance or quality issue, for instance, needs to get their arms around the problem quickly. An interim manager selected from a network – a candidate who is interested, experienced and pre-evaluated, with NDA already in hand – can usually be on site and operational within two weeks.

Additionally, temporary executives are often overqualified. They are specialty consultants and therefore, in the short term, tend to be more expensive than permanent placements. But because they are hired quickly, have project-specific experience and are able to deliver results on Day 1, interim C-suiters are executing immediately. They are also unencumbered by internal ties. They aren’t thinking about their midterm careers or managing relationships with long-term colleagues and future bosses. And because temporary executives under these agreements are typically paid only for the work they do, the ROI for organizations is competitive – and can even far exceed that of permanent hires.

The process of working with a third-party network to hire an interim leader is straightforward, swift and effective: Find a problem-solver, onboard them quickly, pay them for their highly specific services and maintain operational and financial flexibility. Executive hiring doesn’t have to be a tedious and fraught experience. With the option of investing in a temporary white-glove C-suite service, your leadership can keep pace with the rapid change happening around your business.

About Boyden

Driven by collaboration, global perspective, and a deep commitment to clients, Boyden brings together expert advisors who help organizations build stronger leaders and more resilient futures.

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