“Fractional executives” are becoming prevalent in the C-suite, as reported by the Society for Human Resource Management. This type of part-time leader works contractually, often for more than one company simultaneously.
Ash Athawale, senior group managing director of the executive search practice at staffing and recruiting firm Robert Half, called it a trend, the association reported. “We are getting inquiries on this sort of thing, sometimes while we are doing an executive search, to fill the gap until we find the next leader,” he said in an article on SHRM’s website.
Many of the executives found themselves laid off during the pandemic and began taking on project work, according to the experts. They now work at the vice president level or higher for a few hours a week on an ongoing basis, according to Liesl Bernard, who employs fractional executives at CannabizTeam, an executive search and staffing firm.
Although “particularly valuable” among startups for budgetary reasons, fractional executives work for various types of firms and industries, she said. Athawale said he sees the trend in the areas of finance, operations, information technology and human resources.
Fractional executives sometimes come into a company as advisers, but their role is slightly different from that of an outside consultant in that they have authority over direct reports within the organization that outsiders typically do not have, and they are able to execute on strategy, according to the SHRM article.
On one hand, employers can benefit because they get the expertise of an experienced executive at a fraction of the cost of paying a salary or benefits, according to industry experts. And an added benefit is the shortened onboarding time.
But on the other hand, according to Bernard, such executives may not be available at all times when needed, since they are not working for full-time for a company. And hiring fractional executives can cause tension with members of the executive team who are full-time, according to the experts.
