Who has the best gig? The Independent or the Interim Consultant?

This is a commonly heard question.

I've had experience of both and I'll share that below – but let me say at the outset that there is no universal answer that will fit all the individual requirements of every consultant.

Definitions

To begin with, let's make sure we're all working to the same understanding. Without getting into semantics and recognising the generalisations here:

• an independent consultant is typically hired for a specified duration and with specific objectives in mind – usually related to a problem or opportunity. They might be operating semi-independently within the client organisation and their role might be less inclined towards performing daily business operations. A typical example might include an IT consultant asked to perform a feasibility study relating to a potential new IT system; 
• an interim consultant usually fills a specific operational role in an organisation and the duration may be longer and flexible. It usually relates to a skills shortage in operational circumstances. Examples might include covering for an accountant on maternity leave, providing specific IT skills following a resignation and pending recruitment or covering an operational need where no client budget for permanent recruitment exists. That latter is often found where the client has operational headcount constraints but where it does have a consultancy budget;

Some draw the distinction of saying “independent consultants advise” and “interim consultants do” - which may sound simplistic but it's a fair conceptual start point for thinking about the two roles.

In some contexts, “consultant” is used to describe the former type of role and “contractor” the latter, though terminology may vary considerably between client companies. 

Pros and cons

It's possible to make too much of the differences between the two statuses. It should be remembered that both roles may be highly specific to a given client and there may be significant overlap.

In very general terms though:

• consulting typically offers higher visibility and seniority than contracting. A consultant may function at leadership levels in the client. Interim roles might sometimes have significant seniority in the client host but they might also involve relatively modest operational-type roles, reporting into mid-management level positions;
• consulting roles are typically brought in by the client as a “weighty” external voice and carry authority from the sponsor as a result;
• typically, interims compete against other similarly qualified individuals, whereas independent consultants might also at times be pitching for business against larger consultancy firms with far greater financial and people resources;     
• the consultant may have a more free-ranging brief than an interim. In the latter role, the emphasis is more likely to be on “doing a daily job”;
• interim work may bring with it more easily defined outcome success criteria, such as “get the annual accounts out on time”. By contrast, consulting can be more subjective in its success criteria and outcomes. The final product of a consultant is commonly advice and that may or may not be well-received depending upon many variables that can’t always be predicted or easily quantified up-front. This means consultants need to spend more time defining their contract’s target outcome at the outset if client delivery acceptance issues are to be avoided;
• there may be rather more continuity and longer durations with interim roles. Consultancy roles can be more vulnerable to sudden changes of client intent and subsequent contract cancellation;
• interim positions rarely generate significant controversy within the client's establishment. By contrast, the appointment of “expensive external consultants” can be highly controversial with existing personnel in the host company and political issues can be more prevalent;
• consultancy roles may be easier to define as “independent” to HMRC and that can make accounting and taxation easier. Interim roles, in one client over a longer duration, may lead to issues relating to employment status, NI contributions from the client and taxation. Take specialist advice.

Which is for you?

A lot depends upon what type of independent you are.

Interim positions

These roles might suit if you like typically longer continuity of employment and the avoiding of the office politics that plague many companies. You might also be seen as part of a team rather than a solo operative.

You're usually outside of the career progression food-chain because you're not really a threat to anyone's career (unless you start angling for a permanent position, at which time that will change fast!). 

You'll be judged on the hard results of your work and your success criteria are often clearly defined at the outset or are self-evident by virtue of the role you’re filling . 

Typically, don't expect to be operating at the highest levels of decision making.

Independent consultants

You’re perhaps more likely to be thinking as a small business and recognising that you’re in direct competition with other such companies, plus those much larger and financially more powerful consultancy firms. That should affect things such as your marketing and branding. 

You'll need to constantly network with the key decision makers in order to demonstrate your competence and to prove that you're delivering value. This can demand a lot of your communication and people skills. 

Independent consultancy roles typically pay in the upper quartile and it's a chance to showcase your knowledge to enterprise leadership. You may have great influencing opportunities but the price of that will be sky-high client expectations of your services and inevitably very significant pressure. Don’t expect to always have very clearly defined target outcomes and success criteria of the “here’s your job spec” at the outset - you may have to construct these as you go.

It can be rewarding in all senses but sometimes a little cut-throat too and the durations may be short. 

If you love the challenges and politics associated with operating at the top, as well as needing to constantly attend to perception management, these roles will suit you. It’s tough but many independent consultants love the domain and do brilliantly well within it.

Contact us

Would you like to know more? We at U-2-Me can help you with a marketplace designed to support both the above role types.