With the ever-changing labor market, companies no longer rely solely on the traditional approach of hiring full-time employees. Fractional hiring, which includes part-time or freelance work, is gaining popularity as an alternative solution. This blog post will delve into what fractional hiring entails, its advantages, and why it is a viable option for organizations in today’s labor market.
What is Fractional Hiring?
Fractional hiring refers to the practice of hiring individuals for part-time or freelance work rather than as full-time employees. These individuals are usually employed for a specific project or set number of hours each week or on a retainer basis. Unlike traditional full-time employment, fractional hiring does not typically include benefits such as health insurance, paid time off, and retirement benefits.
According to the U.S. Chamber of Commerce, fractional hiring “started in the academic world, where professors would often divide their time between teaching students, performing research, making media appearances, consulting on special projects, and lecturing in the private sector. These projects were not based on project completion; rather, professors would have multiple ongoing engagements and be retained based on their expertise on a specific subject matter.”
Fractional hiring has quickly expanded out of the academic world and into the private sector.
It is common for entrepreneurs to use fractional hiring to bring on a CEO with vast business experience in managing financing to help them grow their business. These fractional executives can sometimes be a company’s missing piece to growth. Jayant Chaudhary, with Entrepreneur, states, “Fractional executives may not stay with your business for a very long time, but they certainly leave you with long-term benefits. These fractional executives can help set up an actionable game plan for your business and this can prove beneficial even if the executive is no longer working for you. It is a short-term investment that will continue to pay off for a long time.”
Selecting skilled professionals from a diverse talent pool can bring multiple benefits to your business growth.
Advantages of Fractional Hiring
According to Dethra Giles, CEO at ExecuPrep in Atlanta, Baby Boomers are a group of educated workers that hiring professionals may be overlooking. Pew Research Group reports that Baby Boomers are staying in the labor market at higher rates than ever before. Ms. Giles notes, “Baby Boomers are the most educated generation, with two out of three holding a college degree. They are also more likely than Millennials to start a business, showing their entrepreneurial spirit. Despite these desirable qualities, many companies fail to recognize them.”
Broadening the scope of candidate search beyond the usual talent pool of an organization is a wise move. It opens up the possibility of discovering individuals who may not have been considered before but possess unique skills and experience that could be valuable to the organization. This increases the diversity of the company’s workforce and enhances the chances of successful hires. By exploring different avenues for recruitment, the organization can tap into a broader range of talent and build a more robust team of employees.
While fractional hiring can be a viable solution for many organizations, there may be better fits for some situations. There can be challenges and disadvantages to fractional hiring.
If there are interim changes in a company, fractional hiring could be a potential solution. For instance, if a C-suite or manager-level position needs to be changed temporarily. However, it is not suitable for a sales team to hire a sales professional in this way. While one person may improve sales, it is not ideal for client retention because there is no long-term relationship with the client. It’s best to avoid fractional hires for any position that involves building relationships with clients or outside entities.
Team leads, supervisors, and managers who are involved in building organizational culture and relationships would not be suitable for this role. However, an advisor (fractional hire) who could work alongside a current manager or supervisor to help build the team would be a good fit, enhancing the impact and approaches of both the team and the manager.
Are you considering fractional hiring for your company? If so, you may be wondering how to implement it. The first step is identifying the need, then defining your projected outcome, determining your probable timeline, and identifying the person’s profile. Once you have these goals, you can combine them with expert advice and strategy to achieve the desired results.
In today’s job market, skilled workers are highly sought after in various industries. As a result, organizations face a significant challenge in finding the ideal candidates to drive their growth. Luckily, fractional hiring presents an excellent option for such organizations to explore.