Insights from a Chief People Officer on HR Trends for Scale-Ups in 2023 - Part 1
In this 2-part series with Chief People Officer Geraldine Butler-Wright, we discuss topics within people, talent and HR that are affecting scale-ups in the tech sector right now:
Part 1 - Hiring in a challenging market - is interim the answer?
Part 2 - HR trends scale-ups need to know about.
We asked Geraldine Butler-Wright for her expert take on today’s burning HR issues. Geraldine is one of the most respected Chief People Officers in the London scale-up sector. Always at the cutting edge of HR innovation and embracing new ideas and technology, she is also a super-mum of 2 toddlers. We have had the pleasure of working with Geraldine on a number of occasions.
Geraldine Butler-Wright is currently Chief People and Culture Officer at StreamElements, the $100M VC backed hyper-growth software company in Israel. Geraldine developed her global people leadership career across a range of industries (FinTech, AI HealthTech and performance marketing). She is also a mentor at Leaders Plus, an advisor at Antler VC and founder coach for early stage start-ups.
Part 1: Hiring in a challenging market - is Interim the answer?
Scale-up companies need to continue to grow, but many are currently facing budgetary constraints - could interim leadership be the answer?
Ellis Seder: At Santa Monica Talent, we’ve seen a noticeable increase in appetite for Interim Leadership roles in 2023. With VC funding drying up unless you're in AI, we believe this a viable option to allow you to continue to grow without committing to a full time expensive hire.
What do you see are the main benefits for an interim hire for both employers and candidates?
Geraldine Butler-Wright: Yes, I’ve certainly seen a rise in interim and a lot of senior people moving more towards a portfolio career. They will work a few days a week/month with one company and then a few days with another. They gain a variety of experience and are able to add value to the companies they are working for in intense bursts.
Ellis Seder: It solves the short-term issues for companies who want to continue growing, but can't afford to spend the budget on full time senior staff, although they need somebody to take charge and lead a function - typically it's used for product, marketing, HR, Finance or Operations. We’ve tracked the interim market over recent economic cycles, and there is a direct correlation between the market tightening and the need for interim hires increasing.
Geraldine Butler-Wright: It’s also worth noting that interim can be a great ‘try before you buy’ strategy on both sides. Employers can assess if that person is a good fit for them permanently - interim to perm - or alternatively, finding out if they really need that role.
Geraldine Butler-Wright: Businesses are moving so quickly, and product market fit and hiring strategies are having to evolve at the same pace. The interim market allows for greater flexibility in a very volatile market and creates the opportunity for a business to work out what they want and need longer term.
From an individual perspective, interim also provides a level of flexibility that feeds into the new world of work. A job isn’t for life anymore.
Interim is also helpful from a DE&I perspective. It can avoid the brain drain of super talent, who are able to dip in and out of contracts, and balance work commitments with childcare or any other caring responsibilities.
Ellis Seder: What is the appetite like from founders and CEOs to hire interim leadership v full time?
Geraldine Butler-Wright: Broadly it’s positive, but it really does depend on the founder. There are founders who prefer to have somebody who's going to be in for ‘the long haul’ and have ‘skin in the game’. There can be the perception that they won't invest as deeply as somebody who is permanent and there is a desire for lead positions to be fully immersed in the business. Interim may be seen as a trade-off that some founders are having to make because of tighter budgets and the immediate pressure for growth and results.
Ellis Seder: We find that there are some grey zones around the perception of interim - the terminology can be fuzzy with different titles used such as ‘consultant’, ‘advisor’, ‘mentor’ or ‘portfolio consultant’. The American term ‘fractional consultant’ seems most suitable to me. Any thoughts on the ambiguity of the interim world?
Geraldine Butler-Wright: There can be an outdated perception that interim people are going to fly in with theoretical initiatives and fly out again without having to live with the consequences of decisions they’ve made. But I see interim leadership these days as a lot more hands-on. There is a mind shift happening at the founder and CEO levels. They are seeing very strong senior talent moving towards fractional careers and recognising the high value they can provide for their business - albeit not in the conventional employment relationship. Quality is being seen over quantity of time.
Ellis Seder: Which sectors or roles would you say are the most receptive to interim?
Geraldine Butler-Wright: Marketing and HR roles tend to be popular for Interim Leadership. Traditionally, there is a concentration of female talent in these roles, so interim can often be maternity leave cover.
Geraldine Butler-Wright: I’ve seen people in senior leadership roles develop very successful careers through these kinds of interim roles. They love the variety of experiences they get, the networks they build, and also have the option to take breaks in between contracts, which they’ve found super helpful for overall wellness.
Ellis Seder: We've noticed a wave of interim chief product roles. Could this be a result of pressure from investors to demonstrate product market fit and revenue? An experienced Chief Product Officer is expensive, £150-£200k, So having the ability to bring in an experienced scaleup CPO for one day a week, to mentor your product team and work with the founders, is of real value. We see the interim requirements cycle between product, marketing, and HR, but not too much in revenue roles as they still prefer full time.
Geraldine Butler-Wright: There can be some hesitancy around sales leaders being on a part-time or interim basis. I’ve found that CEOs like their sales leaders to be available and present, particularly when there are smaller teams that are having to quickly adapt and stretch into roles. More than ever, execs are expected to be hands-on to support their teams, help coach them, grow and adapt in very quickly changing landscapes.
Ellis Seder: Do you think it's a good option to bring in an interim VP sales role if the funding has dried up and the company needs revenue growth to achieve the next stage of investment? To hire a successful VP of sales could be a £200K base with double OTE, and most of the good ones won’t join unless they have a good chance of hitting the double OTE. The alternative is a highly experienced sales leader who would charge anything from £500 to £1000 per day, or maybe even sweat equity.
Geraldine Butler-Wright: True, and I think the revenue success rests on how a company organises themselves around this approach. They have to be very intentional and clear about the expectations of everyone involved. Being open minded and able to structure an interim role in a way that works for the organisation is something that needs to be thought through carefully. Perhaps they are only needed for two and a half days a week, or each morning, rather than the standard Monday-Friday 9-5.
Partner with Santa Monica Talent. Let’s talk!
Call: 07584 022852
Email: ell@santamonica.digital
Ellis Seder is founder and director of Santa Monica Talent. Helping high growth companies, from seed to unicorn. Ellis has 20 years of experience building technology, sales, marketing, product, people and operations departments for clients ranging from VC-backed scaleups to global investment banks.