Forbes has a new article on the benefits of Fractional employment by Cheryl Robinson. She covers how the evolving workforce landscape has seen a significant shift towards fractional employment, a model that’s reshaping industries and impacting the economy. Here’s a breakdown of key insights and trends highlighted in the article:
- Growth of Fractional Work: Traditional full-time roles are increasingly being replaced by part-time or temporary positions. This trend is particularly pronounced in the gig economy, where businesses hire workers for specific tasks or projects, even at the C-suite level.
- Generational Trends: Deloitte’s research shows that 50% of Gen Z and over one-third of millennials are working a second job, either part- or full-time. Additionally, ADP data indicates that in 40% of companies, one in four workers is engaged in gig work, and 16% of Americans earn money through gig platforms.
- Expert Insights from Abby Sugar: Sugar, a fractional employee expert, highlights the benefits of this model, especially for startups and small businesses. By hiring fractional executives like COOs, companies can access high-level strategic thinking without the financial burden of a full-time salary.
- Sugar’s Background: With a decade of experience in startups, Sugar has been instrumental in adapting business models and was recognized as one of Forbes Next 1000 honorees in 2021. She collaborates with brands, including The Standard, to enhance their business strategies.
- Benefits for Businesses: Fractional employment allows companies to scale their workforce flexibly, leading to increased efficiency, profitability, and innovation. This model is particularly advantageous for startups and small businesses, as it offers high-level expertise at a fraction of the cost of full-time employees.
- Leadership Development: Working with fractional employees necessitates the development of trust and communication skills, akin to managing consultants. Clear communication is crucial to set expectations and establish boundaries.
- Cost Efficiency: The fractional model can save businesses up to 30-40% compared to hiring full-time staff. It also serves as an extended job interview, reducing the costs associated with onboarding and training.
- Adapting to Fractional Culture: While there are challenges, such as building long-term relationships in a transient environment, companies can foster a positive culture by recognizing achievements and allowing autonomy.
- Strategic Hiring: Sugar advises a thoughtful approach to hiring fractional employees: hire slowly, fire quickly, and trust in the process and people you choose.
- Overall Impact: The fractional work model opens up new opportunities for companies in terms of personnel flexibility and cash flow management, ultimately helping elevate their brand and adapt to changing market dynamics.
Fractional roles open up more opportunities in the company both on a personnel side and in cash flow. Let the benefits of hiring fractional employees elevate your brand.
Read the full article on Forbes
