Fractional HR is trending! What is fractional HR? An HR executive working a few hours per week at multiple companies simultaneously. It’s a gig arrangement for executives in all areas of expertise including Finance, Marketing, and IT, but my interest is in how it can impact HR specifically. Start-ups and other smaller businesses are benefiting from these arrangements due to the competitive nature of the talent market. Organizations get all of the benefits of an experienced executive but with less overhead cost, think benefits and a competitive salary. Small companies and start-ups often don’t need someone in every chair to grow and expand their business. That is the beauty of a #FractionalHR arrangement.
In my business I work diligently to become a trusted partner to that small business owner or stakeholder as quickly as possible. Once that relationship is established, I can advise on HR topics across the company and take ownership of those areas. I keep the company in compliance on all HR legal issues and provide strategic direction on employee matters. Thus, taking these issues off the business owner’s plate and allowing them the time to work on other matters that are more pressing, like growing their business.
Why Use a Fractional HR Consultant?
HR’s seat is often left empty until a company is viable, and even then, sometimes it is only filled when an issue arises and someone in another seat is tasked with solving that particular issue. Those in other seats can provide short term assistance on HR matters, but it takes their bandwidth from their regular job and stretches them in ways that may not bring the best value from their expertise.
The challenge with using others in the company, whether it is the CFO or an Office Manager, is that eventually, as the company grows, and the HR issues begin to take more and more time, the person dealing with the issues becomes burned out taking on too much responsibility. The empty HR seat then becomes a burden to the entire company and slows progression at that point.
To keep an organization on its projected growth trajectory, a fractional HR arrangement could fill those needs and free up bandwidth to work on growth in other areas of the organization. While this trend is generally positive for the organization, all arrangements come with a few challenges. Let’s talk about those next.
Access to the expert could be an issue in a fractional arrangement. A fractional consultant likely spends a dedicated number of hours per week within your organization. If an issue arises outside of those hours will the consultant be available? I make it a priority to keep my schedule fluid so I can rearrange priorities and be available, if needed, for clients. If I am a respected part of the C-suite team, then these emergencies are few and far between. Only when kept outside of emerging issues could this cause a fire drill.
Save Capital with a Fractional Arrangement
Small businesses and startups are often evaluating whether they need a fractional expert or a full-time employee to handle these sensitive and strategic matters. I promise I am not interested in a full-time engagement with any one company, if that is the amount of work required for this position, I will be able to identify that issue pretty quickly and recommend a search for a full-time employee. In the beginning of any engagement, the work is a bit more time consuming while a fractional expert is getting up to speed on matters, but once that is accomplished, the fractional arrangement is usually consistent, only fluctuating with the business needs.
Any arrangement can have inherent risks associated with it. Proper vetting and goal setting helps organizations select the right #FractionalHR for their unique business needs. In my practice I have an extensive onboarding procedure to move the relationship along, set proper expectations, and get off on the right foot. I may be new to your organization, but I am not new to HR! Once up to speed, I can begin contributing and ease the burden of HR related issues on your organization.
Could your business benefit from #FractionalHR support? If so, let’s chat to see if I can help.