Aram Lulla - Division President, FA | HR | IT | Legal | Military | SC&O | SM at Korn Ferry.
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I recently spoke with a department head who was facing a talent dilemma. After months of back-and-forth, the department head’s request for three new hires had been approved. The timing couldn’t be more critical; these positions were essential to supporting a major initiative kicking off in the new year. The money was in the budget and the team was ready—but the candidate search was dragging on, no offers had been made and the project kick-off loomed.
It can feel like a Catch-22: Your money is allocated, but you don’t have the right people lined up so you can’t spend the budget. If the budget is “use it or lose it” or a key initiative could be delayed, the urgency to hire can be significant—and the pressure not to make a mistake even greater.
The department head made a smart call for the company's situation: She opted for three interim professionals to bridge the gap until permanent hires could be made. As we plan for 2023, here are three scenarios when opting for a contract or interim hire might make strategic business sense:
1. Speed is of the essence.
Whether you’re at the end of a budget period and facing a “use it or lose it” requirement or kicking off a major initiative, hiring delays can be costly. Interim hires can be a quick-fix solution that keeps businesses on track and ready for what’s next. In some cases, the interim hire could even become a permanent addition to the team.
But for many companies, the hire keeps everything moving smoothly until a permanent placement is made. This gives you “the best of both worlds” because it relieves pressure so managers can take their time to find the right person while teams stay on target to achieve their goals.
2. You need talent with a specialized skill or experience set but only for a fixed period.
Let’s face it—top talent can come with a top price tag. But not every team member needs to be a permanent hire. Digital transformation projects and system-wide upgrades often require specialized IT professionals. Even if an external vendor is handling most of the technical details, your business could still need an internal stakeholder to manage the process.
Ideally, an interim hire in this situation should be well-versed in the technology solution being implemented. Your department may not be approved for another permanent hire or the cost of this specialized hire may not make long-term sense for your personnel budget. At some companies, the project budget could cover the cost of an interim hire, further minimizing the impact on the overall budget.
3. You’ve maxed out your permanent hire count but still need more support.
We’ve been on a talent roller coaster these last two years. The pandemic caused some companies to reduce headcount or put hiring freezes in place. Once those freezes were lifted, talent markets evolved with hiring becoming more competitive and costly. This means many teams are running leaner today than two years ago, and not everyone has the option to bring on more permanent hires.
Leaner teams may look less expensive on paper, but they could cost your business in the long run with burnout and reduced productivity. Consider a workforce strategy that leverages a mix of interim and permanent employees to maximize bench strength in a budget-friendly way.
Don’t start 2023 missing key talent on your bench. If a permanent hire isn’t in the cards right now and you need more support, consider bridging the gap with an interim professional.
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