Driving performance and growing your business brings a wave of new challenges and opportunities — but with a to-do list longer than your arm, enlisting a Fractional Leader could be the key to smoother growth, improved performance, and better sleep at night.
Read on as we explore the meaning of fractional employment and the impact it can have on your business.
As investment grows, you need more of the right people by your side.
Whether it's a CFO to help you navigate financial waters, a savvy marketing guru to help turbocharge your growth, or a people pro to help you build a People & Culture Strategy that truly works; You need the right people around the table.
But do you have the budget for all of that senior expertise?
The hunt for talent can be daunting, expensive, and time-consuming. The average permanent vacancy takes around 2-3 months to fill, plus notice periods, plus onboarding and you’re looking at 6-9 months to get someone up and running. For a senior hire, this could be even longer, and unfortunately, 2-3x more expensive…
Then once you’ve found the right person, there’s the cost of employing them full time (that’s not just salary, but relevant taxes and benefits too).
In a scaling business, hiring someone with enough experience to take a leadership position creates wastage. That’s because, despite what you have on the roadmap, you’re unlikely to need their strategic insight for 40+ hours a week. In fact, you might only utilise 20-30% of their capability, but you’re paying full price.
But when you need it, you need it.
Enter fractional hiring – a new way to quickly onboard seasoned, executive-level experts on an ‘on demand’ basis, meaning you can channel their expertise when and where it's needed most, without the hefty price tag of a full-time C-suite exec.
What is a Fractional Leader?
A Fractional Leader is kind of like a Founder’s Swiss Army Knife. They’re a highly skilled pro who juggles strategic roles at a number of companies. They’re normally VPs, Execs, or part of the C-suite, and are often the secret weapon of leaders who want to level up their team, without maxing out their budget.
These roles include COOs, CFOs, CTOs, CMO’s and CPOs – but whatever their specialism, they’re brought in to make a long-lasting impact. They shape strategy and embed high-impact ways of working, rather than completing niggly tasks or short-term projects.
This setup allows ambitious companies like yours to tap into top-tier talent without committing to a permanent hire. In doing so, you only pay for the services you need and for what has the most impact.
So, if you’re a Founder looking to level up your team, at a fraction of the cost (sorry 😉), this could be for you.
What is the difference between a freelancer, a contractor, and a fractional leader?
Though they’re similar, there are some key differences:
- Contractor: A contractor is self-employed. They’re hired for a specified amount of time to complete a project or cover a temporary absence like maternity leave. They typically work with one company at a time, and can be more expensive than a full-time hire.
- Freelancer: A freelancer is also self-employed. They offer their services on a project-based, ad-hoc basis. They manage their own schedules and often juggle multiple clients simultaneously.
- Fractional: Whether independent or part of a company, Fractional Leaders offer highly specialised skills to various businesses during the working week. They’re essentially part of the team, for part of the time, focussed on what is going to make the most difference.
As they’re fully embedded within a company for an extended period, they are there to offer ongoing support in shaping strategy, refining processes, or tackling specific challenges. As experts in their field, they can also provide coaching to help Founders offset challenges and forge the right path forward.
Unlike freelancers or contractors, Fractionals aren't just passing through; they're committed for the long haul, thinking, and operating strategically, offering support for as long as it's needed. Instead of squirrelling away to deliver a set project, they work with the team to contribute strategically to the whole business through their area of expertise. We’re talking big, huge impact!!
It might be boring, but it’s useful to know that while all three roles offer short-term, flexible contracts, the payment structure is also different. Contractors and freelancers normally opt for hourly, daily, or project-based rates, while Fractional Leaders typically work on structured retainers, ensuring consistency and predictability for growing businesses.
An independent fractional employee vs. a fractional company
When it comes to Fractionals, there's a difference between fractional employees and fractional companies. Understanding your options can help inform the best decision for your company.
- Fractional employees: These professionals operate independently, offering specialised services to companies on a part-time basis.
- Fractional companies: Fractional companies like Foundation Partners or Unleashed, partner with businesses to comprehensively understand their needs before providing tailored solutions and embedding fractional leaders into their company on a flexible basis.
But the biggest and most important difference is that fractional companies offer start-ups scalable solutions and have a combined weight of experience to provide extra support, guidance, and resources as needed.
Think of it like this: instead of someone having worked with, learnt from and experienced the pitfalls and successes of 5 businesses in the past, the team at a Fractional Company has gained insight from over 200 businesses.
Using their combined experience, they’ve seen more of the good, the bad and the ugly, so can deliver better and faster through shared knowledge and collaboration behind the scenes. We call it the Foundation Brain.
This leaves a lasting impact not just on your company, but on you, your fellow leaders, and your entire team. And pretty darn crucially, it can lead to high impact and high performance faster!
The benefits of working with Fractional Leaders
Curious about the perks of teaming up with a fractional leader?
Well, as your company grows, so does the need for expert support you can trust.
Unfortunately, that’s the kicker. Finding the know-how you need to grow and become profitable, without rinsing your budget.
But, investing in the right fractional leader can save time, money and deliver the results you need.
Put simply, working with a fractional allows you to have your cake and eat it too. It’s not about a fraction of the impact. You’re getting the same impact you would get from a full-time hire – at a fraction of the cost.
Here are some of the key benefits of working with fractional employees:
Cost-effectiveness
- Affordable talent:
Your budget goes waaay further with a fractional. As your business grows, the talent you’re able to attract is often dictated by your bottom line. But with fractionals, you can tap into the senior expertise you need, without committing to a full-time salary. - Safety first:
Fractional hires reduce the risk of over-hiring. You get the right expertise without the usual commitment, ideal for navigating periods of rapid growth. This flexibility means you can scale up or down as needed.
On-hand expertise
- Getting the skills you need, at speed:
Your time is precious, and you’ve got enough on your plate already. By hiring a Fractional Leader, you can bring specialised skills and experience into your team without the delays of traditional hiring techniques. They're also used to finding their stride in new environments and will be available when you need them. As they have a shed load of experience, they are able to deliver quality work from day one. - Gaining the competitive edge:
With experience across various industries, cultures, and business models, fractional employees can offer a unique perspective that can set you apart from the competition. A great fractional partnership means that delivering quick wins and focussing on highest impact deliverables can get you to where you want to go faster than ever. - Nurturing your own skill set:
A Fractional leader has been there and done it. This isn’t someone learning on the job, it’s someone who you can learn from. They serve as mentors and can offer their expertise to help you hone your skills as a founder and leader. For instance, alongside expert fractional support, Foundation Partners also specialise in mentorship and leadership development.
Final thoughts
So… it’s clear why fractionals are catching the eyes of start-ups and growing businesses alike.
But while fractional leadership was once considered an option solely for start-ups, they’re now being leveraged by companies across all sectors and sizes. Research by McKinsey & Co. revealed that 35% of Fortune 500 companies have implemented fractional leadership in some form, showing how widespread they’re becoming. And, with a high level of impact at a fraction of the cost, it’s hardly a shock.
By partnering with a fractional, you too can access specialised skills and drive growth without navigating the minefield of traditional hiring models. You’ll save on the cost that the very best hires demand and avoid any long-term commitments along the way.
As their focus is about delivering on what is going to be most impactful, Fractional Leaders are a strategic move that wholeheartedly embraces the flexibility and adaptability of a growing business and helps prime you to scale at speed and thrive in the next phase of your journey.
So why wait?
Navigating the next phase of your business journey? At Foundation Partners, we can be your compass.
Get in touch to find out how we can help.