In this article published in Forbes, Christine Pilkington, the CEO and founder of Crisp, a fractional CMO and contract marketing services firm, highlights the emerging trend of fractional employment, especially in leadership roles. This concept, first noticed by Pilkington in 2015, involves businesses hiring professionals for a specific portion of their time, typically on a contract basis, rather than full-time. This model has gained traction, evident in the significant increase in searches for roles like “fractional CMO” and “fractional CFO.”
Fractional employment is particularly beneficial for startups and businesses needing executive expertise without the financial burden of a full-time position. It provides a solution for companies to access specialized skills and leadership for business development, financial management, and more. This approach is increasingly relevant in scenarios like expanding into new markets or preparing a business for investment, where specific expertise is crucial.
The rise of remote work and distributed teams has further fueled the flexibility and appeal of fractional employment. Unlike traditional freelancers who might work on short-term, one-off projects, fractional leaders are more integrated into the company. They often have official roles on the organization chart, participate in internal operations, and are seen as part of the leadership team.
For businesses navigating turbulent times, fractional leadership offers a swift injection of expertise. Pilkington shares an example of a Vancouver-based automotive company hiring a fractional CFO for expanding into international markets. This model allows businesses to leverage specialized knowledge and mentorship to innovate or stabilize in changing environments.
Another advantage of fractional hiring is true delegation. Pilkington points out that hiring a fractional leader, as opposed to a junior resource, allows for effective delegation of significant initiatives. This is because fractional leaders require minimal onboarding and can be held accountable for substantial projects, freeing up business owners to focus on overall management.
Cost-effectiveness is a notable benefit of fractional employment. While the hourly rates of fractional leaders might seem high, they often cost less than full-time middle management when considering the total expenses associated with full-time employees, such as benefits, office space, and equipment. Fractional hires, as contractors, use their own resources and only bill for actual hours worked, reducing overhead expenses.
