Fractional employment is here to stay
The traditional model of long-term careers with a single company has disappeared due to technological developments and other economic factors. The concept of “fractional work” has emerged instead – less full-time roles and more long-term projects, with professionals working with multiple employers and being compensated for results rather than office time.
Labor itself has become an asset that professionals need to utilize flexibly to succeed, just as investors diversify assets to minimize risk. The “sharing economy” was born as apps enabled new models of renting, taxis, etc. However, human limitations have prevented the full transformation to fractional work models. Freelancers struggle with burnout handling endless streams of one-off tasks. Long-term projects pose even greater human resource challenges.
AI Models and Fractional Work
In 2023, generative AI models have provided a catalyst to make fractional work more scalable for startups. AI tools can help manage tasks and customer relations. Fractional employment allows startups to attract top talent without massive investments, while enabling professionals to handle routine tasks and focus on core projects without burnout. AI can increase efficiency, reduce errors, and decrease MVP development costs.
Identify Growth Opportunities
However, AI should be viewed as a tool to enhance business, not a business itself. With the rise of fractional employment, companies face challenges that future unicorns are starting to address. Businesses should identify growth opportunities rather than playing catch-up later. Specific recommendations include:
1. Clearly define your core business function and processes. Determine what needs to be handled in-house versus what can be complemented by outsourcing.
2. Reinforce a culture that values both staff and non-staff as part of the team. Fractional workers should not feel less significant.
3. Seek innovative AI applications that can reveal hidden efficiency gains and growth potential in your processes. Leveraging tools to enhance results should be encouraged rather than viewed negatively.
The key is focus. Many professionals already strive to apply their expertise on a fractional basis. Founders must understand their core competencies and focus work on critical project areas. With a clear focus supplemented by AI tools, startups can achieve success via fractional work models.
The original article appeared in Forbes. The author, Igor Ryabenkiy is the Founder and CEO of AltaIR Capital, an international early-stage venture investment company.
