I was recently introduced to someone with the title “Fractional CHRO” This individual worked in that organization two days a week and was involved in similar roles for a few other companies.

This person is not alone. I have seen similar situations in other organizations, and I am amazed that many of our organizations have accepted this in our environment. It is a welcome change from the traditional thinking of always having full-time employees.

The world of work is changing rapidly. Almost every organization faces a talent shortage, particularly startups, family businesses, and small to medium-sized enterprises. These organizations need executive-level expertise but cannot justify the cost of a full-time hire. Even if they can afford financially, the culture aspects can be difficult to overcome. A growing solution is the use of fractional executives.

A Fractional executive could be anyone who works on a part-time basis, but the real value add comes from the role of a senior leader, such as a CHRO, CFO, CMO, COO, or CIO. These executives work with a company on a part-time, contract, or project basis rather than as a full-time employee. This allows companies to gain access to their experience, network, and leadership while only paying for the fraction of time they need.

Besides the cost advantage, Fractional executives offer flexibility to scale up or down based on the organization’s growth stage. They can quickly jump in to solve problems and bring subject matter expertise, which can be particularly useful during leadership transitions, turnarounds, or when searching for a permanent hire.

For Fractional executives themselves, this flexibility allows them to work to their own time preferences, take on as much work as they deem appropriate, and avoid being tied to a single job that could lead to boredom.

To those who are curious about loyalty and commitment, I suggest exploring the recent trends in the job market. It’s a vastly different landscape. People are increasingly demanding flexible work hours, remote work options, and the opportunity to take on side gigs.

If Fractional executives disrupt the traditional way of working, I see it as a positive step forward and encourage more organizations to embrace this change.

Worth thinking about 🤔