Author
Marcus Barnes
Partner
Guide · Tierpoint Partners · September 2026
When a finance leadership need arises, there are three broad ways to meet it: a permanent appointment, an interim appointment or a fractional arrangement. Each suits a different situation. The right choice depends less on the job title than on three practical factors: how much of someone's time the work needs, how long the need will last, and how quickly someone must start.
Permanent: for enduring roles
A permanent appointment is the right answer when the role is ongoing and the business needs someone to build the team, own the function and carry its knowledge forward over years. No other model provides that kind of continuity.
The trade-offs are time and risk. Senior candidates usually have notice periods of several months, and the market for experienced finance professionals is tight: 67% of finance hiring managers say they will pay higher salaries where qualified talent is scarce [1]. The cost of a hiring mistake is also rising, because changes under the Employment Rights Act, expected from 1 January 2027, materially increase employers' financial exposure around dismissal [2].
Interim: for defined periods of full-time need
An interim appointment places an experienced professional in the role full-time for a fixed period. Interims typically start quickly, take ownership from the outset and leave once the work is done. That makes the model well suited to three situations: covering a vacancy, absorbing a peak in workload, or leading a specific programme such as a systems implementation or a post-acquisition integration.
Day rates reflect that flexibility and experience. According to the Institute of Interim Management's 2026 survey, the average interim day rate is £907, private sector rates exceed £1,000, and the average assignment lasts ten months [3]. Over a full year, an interim can cost more than an equivalent salary. The more useful comparison, however, is with the cost of a vacant seat, a delayed programme or a rushed permanent hire.
Fractional: for part-time senior oversight
A fractional finance leader works with a business for a set number of days a week or month on an ongoing basis, and the model is growing. Almost a quarter of interims' most recent assignments in the IIM's 2026 survey were fractional, and providers report growing demand among SMEs, scale-ups and private equity-backed businesses [3].
Fractional support works well when a business needs senior judgement, board reporting or investor-facing experience, but not a full-time leader. It is less suited to work that needs daily ownership, such as running the month-end close through a period of disruption or leading a large programme to a fixed deadline.
Comparing the three models
Permanent | Interim | Fractional | |
|---|---|---|---|
Time commitment | Full-time | Full-time | Part-time, ongoing |
Duration | Open-ended | Fixed term, typically months | Ongoing, flexible |
Speed to start | Slowest, as notice periods apply | Fastest | Fast |
Best suited to | Enduring roles and building the team | Vacancies, peaks and defined programmes | Senior oversight without a full-time need |
Main trade-off | Time to hire and cost of a mis-hire | Higher day cost; knowledge must be handed back | Limited availability for day-to-day work |
Combining the models
The models often work best together:
Interim, then permanent. An interim can stabilise the function while a permanent search runs, giving the business time to define the role properly before committing.
Interim to permanent. Some interim appointments convert to permanent roles once both sides know each other.
Fractional oversight with interim delivery. A fractional leader can provide senior oversight while an interim delivers a specific programme beneath them.
A simple test
Three questions usually point to the right model:
Does the work need someone full-time, and is the need enduring? Recruit permanently.
Does it need someone full-time for a defined period, or must someone start within weeks? Appoint an interim.
Does it need senior judgement for part of the week on an ongoing basis? Consider a fractional arrangement.
We place interim finance professionals, and where another model would serve you better, we will tell you.
References
Robert Half, 2026 UK Finance and Accounting Salary Guide. https://www.roberthalf.com/gb/en/insights/salary-guide/finance-and-accounting
DLA Piper, The Employment Rights Act 2025: Preparing for change. https://blogs.dlapiper.com/beaware/employment-rights-act
Institute of Interim Management, Interim Management Survey 2026, as summarised by Stanton House, 16 June 2026. https://www.stantonhouse.com/career-resources/interim-management-survey-2026-challenges-insights-and-what-comes-next
