What is Fractional Hiring?
A fractional employee divides his/her work week among multiple employers allowing for a company to hire someone with lots of experience without hiring them at a full-time salary with benefits. Usually, a fractional employee has a defined number of days to work, such as two days at one company and three days at another. They may be self-employed or work for an agency that specializes in offering fractional services to a particular industry.
However, a fractional employee is not a freelancer. The employment is not dependent on a single project or contract. It is a typical employer/employee relationship with regularly defined hours. Most fractional employees forego benefits such as medical and dental in exchange for greater flexibility over work/life balance.
Why Use Fractional Staff?
All organizations evolve throughout time. If your organization is not continuing to evolve, then be prepared to face competitive and other business growth challenges into the future. Sometimes, current “C” level leadership is looking for a fresh perspective, or they are looking to cut back on work schedules, and they don’t have complete business leadership coverage in place either during the interim, or while contemplating the ascension process. At times, it is also necessary during acquisition processes to put into place an interim “C” level expert to run a business until a permanent resource is found.
Hiring Fractional Staff can alleviate the interim strain while the executive search takes place. Strategy Source broad network of seasoned professionals are here to help.
Types of Roles that Fractional Hiring fills best
Typically, Fractional Hiring works best for positions like CEO, COO, CMO or General Management Consulting Services. Benefits of Fractional Staff can include faster results, a fresh perspective, real and measurable return on your investment, less political maneuvering and more action, and scalable network across multiple areas.
The ideal fractional employee has senior manager or executive experience that lends him/her to adapting to the new company. They understand the intricacies of interpersonal development and how to lead a team. Look for these skills when considering someone for a fractional position at your company.
Why Fractional Hiring?
The following real-world example shows how fractional employees can be one of your most beneficial hires.
Company X lost their CMO who decided to pursue a different opportunity. They ask the VP of Marketing and Junior Staff to take on the workload of the CMO. However, Company X thinks the cost savings of not replacing the CMO is really nice and they decide leave it vacant while they look for their next CMO.
Are they really saving money? Not really – what really happens is that the VP – who already has a full work load – becomes overworked, the Junior Staff is unqualified to be managing some of the work, and things start falling through the cracks. They ended up relying on vendors and Junior Staff to manage the brand. The risk begins to outweigh the cost savings benefit. Because Company X has become enamored with the money savings, they end up compromising the opening of a new project and potentially loose a long-term client.
The solution to this issue should have been to bring in a fractional CMO until they were able to find the right person for the job.
Strategy Source has the experience and pool of potential fractional employees to help your company avoid this costly mistake.