What is a Finance Business Partner?
Hiring a finance business partner (FBP) has become essential for businesses of all sizes. An FBP will bridge the gap between your departments, using their financial expertise and data-gathering skills…
In 2026, London’s finance leaders face an increasingly challenging hiring landscape. Competitive talent markets, shifting business priorities and the introduction of the Employment Rights Act 2025 mean that decisions around interim versus permanent finance hires require careful strategic planning.
Permanent Hires: Stability With Early-Stage Considerations
Permanent finance professionals continue to be the foundation of any finance function. They bring institutional knowledge, leadership continuity and long-term capability.
At the same time, the Employment Rights Act 2025 introduces stronger day-one rights and shortens the qualifying period for statutory protections. For finance directors, this raises the stakes during the early stages of a hire. Missteps in onboarding, probation, or initial performance management now carry both operational and legal implications.
To minimise risk and ensure new hires contribute effectively, organisations need structured hiring processes and strong cross-functional coordination between finance, HR and legal teams.
Key focus areas for permanent hires in 2026:
- Onboarding and probation processes aligned with updated statutory requirements
- Clear early performance expectations and support mechanisms
- Close collaboration between HR, finance and legal functions
Interim Hires: Flexibility Demands Clarity
Interim finance talent remains essential for specific projects, system rollouts, M&A activity and peak reporting periods.
However, in 2026, interim contracts require careful definition. Deliverables should be clearly outlined and the differences between interim and permanent roles must be explicit. Increasingly, finance leaders view interims as strategically scoped resources that provide high-impact support, rather than simply temporary stop-gaps.
Compliance with the Employment Rights Act is also critical for interim engagements. Ensuring contracts are properly structured reduces the risk of misclassification or unintended statutory obligations.
Best practices for interim hires:
- Clearly define project scope and objectives in contracts
- Maintain distinctions between interim and permanent roles
- Align engagement terms with legal and compliance requirements
Balancing Agility, Compliance and Cost
The new Act also brings stronger enforcement powers and penalties, making compliance more important than ever. For finance directors, workforce planning now involves both operational efficiency and risk management.
Successful finance teams in 2026 strike a balance between stability and flexibility:
- Permanent hires provide continuity, leadership development and cultural alignment
- Interim hires deliver targeted expertise, adaptable capacity and rapid capability scaling
By combining these approaches strategically, organisations can build resilient, compliant and high-performing finance teams equipped to handle both immediate projects and long-term objectives.
FAQs
- What’s the main difference between interim and permanent finance hires?
Permanent hires are long-term members of your finance team, bringing continuity, leadership, and institutional knowledge. Interim hires are usually short-term specialists brought in for specific projects, such as system upgrades, M&A activity, or peak reporting periods. The choice depends on whether your organisation needs long-term stability or targeted, flexible expertise.
- How do the Employment Rights Act 2025 changes impact permanent hires?
The Act gives employees certain rights from their first day of employment, including parental and family leave. For permanent finance hires, this means onboarding, probation, and early performance management must be carefully planned to avoid operational or legal risks. Close collaboration with HR and legal teams is now more important than ever.
- Are interim finance hires affected by the Employment Rights Act 2025?
Yes. Even though interim staff are temporary, contracts still need to comply with the Act. This means clearly defining the project scope, deliverables, and how the role differs from a permanent position. Getting this right helps reduce the risk of misclassification or unintended legal obligations.
- How should finance leaders decide whether to hire interim or permanent staff in 2026?
Consider cost, compliance, and operational requirements:
- Choose permanent hires for leadership, culture continuity, and long-term knowledge retention.
- Opt for interim hires when you need short-term expertise or extra capacity quickly.
- Make sure HR and legal teams are involved to ensure compliance, manage risk, and maintain flexibility in your workforce.
