When a business has a big HR challenge but a limited budget or cannot commit to a long-term C-level hire, it may be time to call in a fractional executive. These HR leaders assist the business with strategy and can be asked to solve any number of problems. They can assess infrastructure, manage a project with the company’s board, get a department set up and running effectively, or help the C-suite plan for future needs.
A fractional chief human resources officer (CHRO), for instance, can forecast a business’ workforce growth, review the compensation and or benefit portfolio, or recommend strategies and systems. These executives can be hard to find, but come with the experience, maturity, and flexibility to be well worth the search.
What is a fractional HR executive?
In most cases, fractional executives have more than 20 years of experience and have served as executive leaders inside other organizations more than once. They have likely worked in various HR positions, so they know the ins and outs of most HR career paths. Fractional HR executives may work a handful of hours per week for one or more clients or work a short period (maybe 6-18 months) on a temporary contract. They typically are consultants, not W2 employees, so do not require benefits or other perks that a full-time employee demands. Because these special, advanced-career leaders might have more than one assignment simultaneously, they can often bring a new or broader point of view to a problem, as they might have seen something similar in another company or industry.
The U.S. Chamber of Commerce calls fractional hiring a way that “…businesses tap into a valuable talent niche and benefit from skills and expertise without paying the same costs as hiring a full-time employee.”
These dynamos have perspectives that come from years of quantifiable success in the HR field.
Who needs a fractional HR leader?
Though there are no strict criteria for hiring a fractional worker or rules about how a business might use this talent, the team at hrQ has distilled a few common trends from years of working with HR executives:
Growth Stage Companies
Most small businesses cannot get the attention or pull together the funds to bring on an executive who has worked for, say, a blue-chip company. But fractional roles are unique. Many of these executives are searching for new challenges and have purposely stepped out of a full-time position to make a big impact or apply their skills to a different industry.
Mergers and Acquisitions (M&A)
Perhaps an organization is in the midst of a merger or acquisition and needs to either boost the staff, upskill segments of existing departments, or check for redundancies in the workforce. Company leaders in this sort of fluid situation want flexibility. They want to spend their time focusing on the long-term business goals and need the expertise of a leader who has previously handled people strategy and other internal changes involved in an M&A.
Specialized Skills
Fractional HR executives can guide the C-suite and board through pivotal decisions that impact growth or optimize business operations. Fractional executives may have a specific or unique combination of skills that a business lacks, like learning and development, employee engagement programming, or HR systems strategy. Plus, their advice is relatively impartial, so this can help leaders understand the true needs of the business.
Start-up Environments
In some small- to mid-size organizations, leaders wear so many hats that there is little time to stop and consider the company’s culture and employee strategy, not to mention how to manage hiring as the work increases.
“Startup leaders may not have the skills or time to build the HR function in the organization,” says Mandy Resmondo, VP, of hrQ, “they are busy building the company. hrQ can send in a vetted, expert fractional HR executive with experience who can manage large-scale, critical projects.”
Hiring Lapses
Hiring for permanent, crucial C-suite roles often requires a great deal of time, so using a fractional executive is a great way to fill the gap while the team hires the full-time person. The fractional HR executive can help carve out the role and set strategies in place so when the permanent person arrives, they can be successful quickly.
Finding the right fractional HR leader
Experts with the ability to enter a business and confidently guide its vital HR strategy are not easy to find. HR Brew posted a great article about why HR departments use fractional executives. When searching for fractional help, here are a few suggestions for success from the team at hrQ:
Speak with an hrQ recruiter today to assess your needs and find your next executive-level HR business professional. Contact us at 866-363-5496.
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