What are the benefits of hiring interim workers for employers?
Interim recruitment, also known as temporary or contract recruitment, offers several benefits to employers.
Efficiency is one of the key benefits associated with hiring an interim employee. Camino Search has a very short timeline from your first conversation looking for an interim hire to them joining your team and frequent interim workers won’t have the usual long term notice periods that permanent employees at their level would. You can bring in expertise within two weeks. And as an interim worker will be eager to impress you will see a high impact from day one.
Interim workers do not require upfront costs associated with hiring permanent employees. Interim workers also aren’t entitled to the same benefits and protections as permanent employees which can help to cut costs, improve cash flow and reduce risk.
Interim workers bring specific skills and experience to the table, allowing businesses to address specific needs and projects. Interim workers are also usually highly motivated and able to hit the ground running, helping to improve efficiency and productivity.
Of course, interim work also offers the ultimate flexibility because you aren’t tied into a contract.
What type of work could we use an interim for?
We work with a variety of interim finance professionals all with unique skill sets.
Whether you are looking for someone to support in systems and transformations, financial planning and analysis, budget and forecasting, identifying areas for cost savings, supporting the company through the process of acquiring or merging with another company, preparing and presenting financial reports to stakeholders and regulators or assisting with the process of raising capital from investors, there will be someone who can support you.
How long do interim assignments typically last?
Interim assignments typically last anywhere from several weeks to several months, although some can last for over a year.
The length of an interim assignment depends on a variety of factors, including the scope of the project, the complexity of the role, and the availability of the interim worker. Some businesses may bring in an interim worker for a short period of time to address an immediate need, while others may engage an interim worker for a longer period to provide ongoing support and expertise.
Ultimately, the length of an interim assignment is determined by the needs and goals of the business.
How is pay determined for interim work?
Pay for interim workers is typically determined based on the market rate for the skill set required for the job or completion of a project, the experience of the interim worker, the length and complexity of the project, the budget and compensation policy of the hiring organisation and of course the location or whether the worker is being hired remotely.
It is important for both the interim worker and the organisation to have clear expectations and agreements on the pay and compensation package before starting the interim work. Camino Search provides unbiased salary guidance based on our market knowledge, you can view our interim salary guidance here but for more bespoke salary guidance based on your business and business needs, speak with one of our consultants.
What is the difference between umbrella payroll and limited company payroll?
When hiring an interim employee, you will want to consider whether you use an umbrella company to payroll them. There are several differences between umbrella company payroll and limited company payroll.
Umbrella Company Payroll:
Interim employees are hired by the umbrella company and are considered its employees.
The umbrella company is responsible for paying the employee's salary, taxes, and National Insurance contributions.
Interim employees receive a net salary after the umbrella company has deducted these deductions.
The interim employee is not considered self-employed and does not have to register for self-employment.
This is a simpler and more straightforward option for interim employees who are not interested in setting up their own limited company.
Limited Company Payroll:
The interim employee sets up their own limited company and is considered self-employed.
The limited company pays the interim employee a salary and is responsible for paying Corporation Tax on the company's profits.
The interim employee must register their limited company for self-employment and keep appropriate records.
This option provides more control and flexibility for the interim employee, but also requires more administration and record keeping.
What is the difference between PAYE and FTC?
PAYE (Pay As You Earn) and FTC (Fixed-Term Contract) are two distinct employment statuses that a company can offer to interim employees.
PAYE refers to a method of deducting income tax and National Insurance contributions directly from an employee's pay by the employer. An interim employee on a PAYE basis is considered a regular employee and is entitled to the same benefits and rights as a permanent employee.
FTC, on the other hand, refers to a type of contract that is for a specific, limited period of time. An interim employee on an FTC basis is not considered a regular employee and may not be entitled to the same benefits and rights as a permanent employee. FTCs are commonly used for short-term projects or to cover periods of absence.
In summary, the key difference between PAYE and FTC for interim employees is the employment status and the accompanying benefits and rights.
What sort of timeline can we expect when working with Camino Search to find an interim?
Discovery Meeting (if not possible call)
CVs of pre-screened and met candidates within 24 hours
2-3 days later client first stage interviews
2-3 days later client second stage interviews and offer
Onboarding within a day
What is the difference between inside and outside of IR35?
The IR35 tax legislation in the UK affects the taxation and national insurance contributions of individuals who work as intermediaries, such as through a limited company, but who would be considered an employee if they were contracted directly.
When a company hires an interim employee who is "inside IR35," it means that the individual is considered to be an employee for tax purposes, and the company or umbrella company (depending on if they’re on payroll or not) is responsible for deducting tax and national insurance contributions from the payment made to the individual.
When a company hires an interim employee who is "outside IR35," it means that the individual is not considered to be an employee for tax purposes, and the company does not need to make any deductions from the payment made to the individual. Instead, the individual is responsible for paying their own tax and national insurance contributions.
It's important to note that the IR35 status of an individual is determined by the specific circumstances of the working relationship, and not by the job title or the use of a limited company.
Companies with two or more of the following; an annual turnover of £10.2m or less, balance sheet total no more than £5.1m and/or less than 50 employees are automatically exempt from IR35 but typically outside IR35 is used for positions that are project focused and aren’t subject to supervision, direction or control. Interim workers outside of IR35 will often provide their own equipment.
How can we ensure an interim is well integrated with the wider finance function and business?
How integrated an interim employee is to the rest of the finance function will often depend on the scope of work, for example if they are undertaking project work that doesn’t require support from the wider function then they will have less of a need to work with the whole team.
Regardless of the scope of work, there are a number of strategies businesses can implement to ensure interim employees integrate with the wider team and business:
Onboarding: Provide a thorough onboarding process that includes introductions to key team members, a review of company culture, and a clear explanation of the interim employee's role and responsibilities.
Communication: Encourage open communication between the interim employee and the wider team, and ensure that the interim employee has access to the necessary tools and resources to collaborate effectively.
Involvement: Include the interim employee in team meetings and events, and provide opportunities for them to contribute to projects and initiatives.
Feedback: Regularly provide feedback to the interim employee on their performance and how they are integrating with the team and business. Encourage them to ask questions and seek feedback from their colleagues as well.
Integration: Assign a mentor or buddy to the interim employee, who can provide support and guidance, and help them to feel connected to the wider team.