Interim Roles: Complete Guide to Interim Executives and When Businesses Need Them
Note: Pricing ranges mentioned in this article are general market estimates and may vary based on location, industry, and specific requirements.
Interim roles provide temporary executive leadership during transitions, absences, or critical projects. Unlike permanent hires or consultants, interim executives step directly into leadership positions with full decision-making authority for a defined period.
Businesses typically need interim roles during maternity leave, unexpected departures, or while recruiting for permanent positions. The most common interim roles include CFO, CMO, CTO, COO, and CHRO.
This guide covers what interim roles are, when businesses need them, the most common positions, and how to decide if an interim executive is right for your situation.
What Are Interim Roles?
Interim roles are temporary executive positions filled by experienced leaders who step in during transitions or gaps in leadership. Unlike consultants who provide advice, interim executives take full operational responsibility with the same authority as a permanent hire.
Key characteristics of interim roles:
Full-time or near full-time commitment (typically 3-5 days per week)
Complete decision-making authority
Direct management of teams and budgets
Defined timeframe (usually 3-12 months)
Immediate operational responsibility
Interim executives integrate directly into your leadership structure. They attend board meetings, manage direct reports, and own strategic decisions just as a permanent executive would.
When Do Businesses Need Interim Roles?
Businesses need interim executives when leadership continuity matters but permanent hiring isn't immediately possible or necessary.
Maternity and Parental Leave
The most common reason for interim roles is covering maternity or parental leave. When your CFO, CMO, or CTO takes 6-12 months leave, the business still needs financial oversight, marketing leadership, or technical direction.
Promoting internally often stretches team members beyond their capability. Leaving the role vacant creates gaps in decision-making and strategic direction.
Unexpected Departures
When executives resign with short notice, businesses face immediate leadership gaps. Product launches stall, financial reporting gets delayed, and teams lose direction.
Interim executives can start within days or weeks, providing stability while you conduct a thorough permanent search rather than panic-hiring.
Leadership Transitions
During periods between an outgoing and incoming executive, interim leaders maintain momentum. They keep projects moving, manage teams, and ensure nothing critical gets dropped during the handover period.
Critical Projects Requiring Specialist Expertise
Some businesses need interim executives for time-bound projects like fundraising rounds, system implementations, or market expansions. These projects require senior expertise but don't justify a permanent hire.
Most Common Interim Roles
Interim Chief Financial Officer (CFO)
Interim CFOs manage all financial operations during leadership transitions. They handle month-end close, manage investor relations, oversee compliance, and maintain cash flow management.
When businesses need interim CFOs:
CFO maternity or parental leave (6-12 months)
Unexpected CFO departure during critical periods (fundraising, audits)
Financial crisis requiring immediate senior oversight
Transition period between outgoing and incoming CFO
What interim CFOs do:
Financial reporting and compliance
Cash flow management and forecasting
Investor relations and board reporting
Finance team leadership
Budget oversight and strategic planning
Typical engagement: 3-6 months at 4-5 days per week.
Interim Chief Marketing Officer (CMO)
Interim CMOs maintain marketing momentum during leadership gaps. They manage campaigns, oversee agencies, approve budgets, and keep performance tracking on schedule.
When businesses need interim CMOs:
CMO absence during critical campaigns or seasonal peaks
Marketing leadership gap during permanent recruitment
Product launch requiring dedicated marketing leadership
Agency relationship management during transition
What interim CMOs do:
Campaign management and execution
Agency coordination and oversight
Marketing budget management
Team leadership and performance tracking
Marketing strategy continuity
Typical engagement: 3-6 months at 3-4 days per week.
Interim Chief Technology Officer (CTO)
Interim CTOs maintain technical leadership when product development can't pause. They manage development teams, maintain roadmap momentum, and handle critical infrastructure decisions.
When businesses need interim CTOs:
CTO departure during product builds or technical initiatives
Technical leadership gap requiring immediate direction
System migrations or platform changes needing oversight
Development team requiring senior technical guidance
What interim CTOs do:
Product roadmap management
Development team leadership
Technical architecture decisions
Vendor and partner relationships
Infrastructure and security oversight
Typical engagement: 4-6 months at 4-5 days per week.
Interim Chief Operating Officer (COO)
Interim COOs manage operations during leadership transitions. They oversee processes, coordinate cross-functional teams, and maintain operational efficiency.
When businesses need interim COOs:
COO absence during scaling or operational changes
Process optimisation requiring senior operations expertise
Cross-functional coordination during transitions
Supply chain or operations crisis management
What interim COOs do:
Operations management and optimisation
Cross-departmental coordination
Vendor and supplier relationship management
Process improvement and efficiency initiatives
Performance monitoring and reporting
Typical engagement: 3-6 months at 4-5 days per week.
Interim Chief Human Resources Officer (CHRO)
Interim CHROs maintain people operations during HR leadership gaps. They handle compliance, manage sensitive employee issues, and keep culture initiatives moving.
When businesses need interim CHROs:
CHRO maternity leave or extended absence
HR leadership during organisational restructuring
Compliance requirements needing immediate attention
Culture initiatives requiring senior HR guidance
What interim CHROs do:
HR compliance and legal requirements
Performance review processes
Employee relations and sensitive issues
Culture and engagement initiatives
HR team leadership
Typical engagement: 3-6 months at 3-4 days per week.
How Interim Roles Work
Sourcing Interim Executives
Businesses typically source interim executives through three channels:
Recruitment firms place interim executives for fees of 20-30% on top of monthly rates. They handle sourcing and vetting but add significant cost.
Professional networks connect businesses directly with interim executives through referrals. This eliminates recruitment fees but requires time to source and vet candidates.
Specialised platforms like Fractionus match businesses with pre-vetted interim and fractional executives. These platforms provide faster matching without traditional recruitment markups.
Typical Engagement Structure
Most interim executive engagements follow this structure:
Duration: 3-12 months, with flexibility to extend or shorten based on needs.
Time commitment: 3-5 days per week, providing near full-time presence without permanent commitment.
Authority: Full decision-making power with direct team management and budget oversight.
Transition planning: Built-in knowledge transfer to permanent hires or return of the original executive.
Costs of Interim Executives
Interim executives typically cost $12,000-$25,000 per month depending on role, seniority, and location. This includes:
Daily or monthly rate for the executive
Recruitment fees (if using agencies)
Minimum commitment periods (often 3-6 months)
While expensive, interim executives cost significantly less than the business impact of leaving senior roles vacant.
Interim Roles vs Other Options
When facing a leadership gap, businesses have several options beyond traditional interim hires.
Interim Executive vs Internal Promotion
Promoting internally provides continuity but often stretches people beyond their capability. A marketing manager promoted to interim CMO may handle tactical execution well but struggle with strategic decisions, board presentations, or senior stakeholder management.
Internal promotions work when the person has relevant experience and the gap is short (1-2 months). For longer periods or more strategic roles, interim executives bring proven senior-level expertise.
Interim Executive vs Consultant
Consultants provide advice and recommendations but don't take operational responsibility. An interim executive owns outcomes, manages teams directly, and makes decisions with full authority.
Use consultants for specific projects or strategic advice. Use interim executives when you need someone to run the function.
Interim Executive vs Fractional Executive
This is where many businesses discover a better option exists.
Fractional executives work part-time (1-3 days per week) on ongoing engagements. While interim executives are temporary full-time coverage, fractional executives provide strategic leadership without full-time commitment or cost.
Key differences:
Interim executives:
Full-time or near full-time (3-5 days/week)
Temporary engagement (3-12 months)
Higher monthly cost ($15,000-$25,000)
Often placed through recruitment firms with fees
Ends when contract expires
Fractional executives:
Part-time (1-3 days/week)
Ongoing engagement (can scale up/down)
Lower monthly cost ($5,000-$12,000)
Direct engagement, no recruitment fees
Can transition from interim to ongoing fractional
Many businesses start with interim coverage during a critical gap, then transition to ongoing fractional support when they realise they don't need full-time executive presence.
Read more about when fractional coverage works better than traditional interim placements.
Deciding If You Need an Interim Executive
Ask yourself three questions:
1. How long is the gap?
Less than 1 month: Internal coverage often works
1-3 months: Consider interim or fractional
3-12 months: Interim or fractional depending on time commitment needed
Ongoing need: Fractional likely makes more sense
2. What level of expertise is required?
Tactical execution: Internal promotion may work
Strategic leadership: Interim or fractional executive
Crisis management: Immediate interim coverage
3. How much time commitment do you actually need?
Full-time presence required: Interim executive
Strategic oversight (1-3 days/week): Fractional executive
Unsure: Start with fractional and scale up if needed
Finding the Right Interim Executive
When you need interim executive coverage:
Define the mandate clearly. What specifically needs to happen during this period? "Maintain operations" is vague. "Complete Q3 close, manage audit, onboard new CFO" is actionable.
Set expectations on authority. Interim executives need the same decision-making power as permanent hires. If they can't approve budgets or make strategic calls, you're hiring a placeholder, not a leader.
Plan the transition. Whether transitioning to a permanent hire or back to the original executive, knowledge transfer should be built into the engagement from day one.
Consider fractional alternatives. Before committing to full-time interim coverage, explore whether fractional executives could provide the strategic oversight you need at lower cost and with more flexibility.
Interim roles provide critical leadership continuity during transitions, absences, and gaps. The most common interim positions include CFO, CMO, CTO, COO, and CHRO.
While traditional interim placements work for specific situations, many businesses find that fractional executive coverage provides better value, more flexibility, and the ability to transition from temporary coverage to ongoing strategic support.
If you're facing a leadership gap, explore both interim and fractional options before deciding. Find vetted interim and fractional executives at Fractionus.
