Interim Demand Trends

As we close the year and look ahead to the first quarter of 2025, the interim market has revealed fascinating trends across sectors. Some of our teams have provided insights and a comprehensive view of the challenges, opportunities, and evolving demands shaping the interim landscape. While financial pressures and structural changes dominate many sectors, there is a shared focus on transformation, innovation, and adaptability. Below, we explore the key trends by sector and offer predictions for the months ahead.

Civil Society
The civil society sector has experienced a period of complexity and change, with executive-level interim demand centered on structural redesign, cultural transformation, financial or service turnarounds, and technological advancements. One emerging theme is the growing recognition of income diversification as critical to sustainability. With National Insurance announcements and broader economic challenges, charities and public-good organisations are increasingly turning to turnaround experts and interims with sharp commercial skillsets.

However, a notable preference remains for hiring interims from within the sector, driven by financial risk aversion and budget constraints. Despite this, there is movement toward embracing external skills, particularly in areas like income generation. Looking forward, green shoots are visible in HR and talent acquisition, suggesting potential growth in these areas in 2025.

Central Government
The central government’s interim market has been quieter than usual, shaped by recess, purdah, and the upcoming election. Despite these headwinds, transformation projects and programs remain the primary drivers of demand. Arms-length bodies, agencies, and infrastructure-related organisations have shown particular interest in senior interims, reflecting ongoing developments in railway sector reform and public sector property management.

As we approach 2025, we anticipate a resurgence in interim spend. The injection of new funding and the establishment of emerging organizations are likely to fuel demand for experienced transformation specialists.

Health
The health sector continues to face significant challenges, with financial constraints and delays in role approvals affecting the interim market. Organisations have responded by shifting from traditional day-rate contracts to fixed-term contracts (FTCs) as a cost-saving measure. Despite these pressures, demand remains strong in digital and IT, particularly for Electronic Patient Record (EPR) system implementations.

Digital transformation is expected to remain a priority in 2025, with health organisations seeking interims who can deliver efficiency and technological advancements in a financially constrained environment.

Housing
This year, housing services have seen a strong focus on housing stock improvement and resident engagement due to new regulations. This has created high demand for professionals in building safety, compliance, and repairs. We have supported various authorities in their improvement efforts, particularly before regulator grading. As compliance, repairs, and building safety are highly sought-after skills, the market has been candidate-driven, a trend expected to continue with increased government emphasis on housing improvement.

The new government's house-building targets will also shape the coming year, with a goal of 1.5 million homes in five years. This will drive demand for experienced development professionals, both interim and permanent, to meet the targets.

The Labour government plans to accelerate house-building through planning reforms, including releasing low-quality green belt land and restoring local housing targets. However, many Local Plans are out of date, creating pressure on authorities to approve more applications. Recruitment of permanent planners remains a challenge, with 84% of planning departments reporting workforce shortages. This will likely lead to ongoing demand for senior planners to provide leadership on a temporary basis.

Labour's investment in transport infrastructure, including nearly £1.6 billion for roads and £100 million for cycling and walking, will create further demand for specialists in transport infrastructure, programme management, and collaboration with the private sector.

Despite budget constraints, local authorities will increasingly rely on interim specialists with specific expertise to deliver on these initiatives. Proactive partnerships with recruitment agencies knowledgeable about these talent pools will be crucial for overcoming challenges and ensuring the best value for sustainable progress.”

Children’s Services
Children’s services have seen significant interim demand at Head of Service (HOS), Assistant Director (AD), and Director of Children’s Services (DCS) levels. Drivers include retirements, step-ups, and challenges following difficult Ofsted inspections. This ripple effect is expected to continue into the next quarter, with further inspection results due in January and February likely to create additional demand for improvement leads and senior specialists.

Education
Special Educational Needs and Disabilities (SEND) has been a particularly active area, driven by government reform announcements and ongoing pressures across the country. Interim HOS and AD-level candidates are in high demand to address vacancies or provide additional capacity for improvement initiatives. Transformation and program management expertise will remain essential as these reforms take shape.

Adults’ Services
Similar to children’s services, adults’ services have experienced sustained interim demand at HOS, AD, and Director of Adult Social Services (DASS) levels. Factors include retirements, permanent role turnover, and inspections by the Care Quality Commission (CQC). A trend of DASS leaders stepping into Chief Executive roles has created a secondary wave of interim requirements to fill resulting gaps.

Additionally, there is a growing demand for specialist commissioning capacity as councils strive to balance budget pressures with the need to maintain service quality. This focus on cost efficiency is expected to persist well into 2025.

Conclusion
Across sectors, interim demand reflects a broader narrative of transformation and resilience. Financial challenges are driving innovation, with organisations seeking specialists who can navigate complexity, drive efficiencies, and deliver sustainable results. While pressures persist, green shoots in areas like HR, digital transformation, and commissioning signal opportunities for growth and evolution.

As we move into the new year, the interim market will continue to adapt, shaped by external factors and the relentless pursuit of excellence. For organisations and interims alike, 2025 promises to be a year of challenge, opportunity, and impact.