Fractional HR: A Proven Solution During Critical Transitions

Is your organization facing rapid growth, downsizing or special projects? Strategic leaders can turn to fractional staffing during these critical times.

Fractional HR professionals are experts who can see what is on the horizon and provide specialized, strategic guidance that helps leaders navigate critical junctures in a company’s lifecycle.

What is Fractional HR?

Fractional human resources leaders are veteran HR experts who have extensive experience and know-how in structuring and managing teams for success, particularly during transitions. Fractional HR professionals are engaged in short or long-term assignments as part of a company’s HR team, typically working fewer hours than full-time employees, and offering impartial, expert advice.

A specialized HR search firm can recommend a fractional HR expert after thoroughly investigating a client’s needs and matching those needs with the specific skills of a network of qualified and vetted talent. The firm presents candidates for interviews, facilitates candidate selection and negotiation and then follows up after placement with consistent touchpoints to ensure success.

When Should I Use Fractional HR?

Any size organization can benefit from fractional HR. Small- to mid-size companies benefit from fractional experts when hiring a full-time HR professional may be a significant financial burden. Fractional HR experts develop effective workforce strategies, write corporate policy, oversee recruitment processes, ensure compliance, and handle other critical HR functions for less cost than permanent hires.

Even with larger spend available, organizations may not have the need for a full-time executive HR leader. Fractional HR is an opportunity to bring in specially trained experts, like a Fractional CHRO, to manage through an inflection point or a flexible way to fill a leadership gap.

In our experience, fractional hires are ideal during transition periods, such as:

• Right-sizing. When economic circumstances call for large-scale restructuring or layoffs.
• Mergers and Acquisitions. When objective expertise is needed to combine teams, merge employment policies, and blend differing work cultures.
• Divestitures. When companies divest assets, fractional experts ensure a smooth transition for current and former employees.
• Organizational restructuring. When people are changing roles, whether expected or unexpected, talent management becomes critical.
• Leadership transition. When a succession plan may not be in place, or additional guidance is needed to manage a flux in leadership, skilled HR experts can help fill gaps and assist with leading teams.
• Growth. When organizations move through growth stages, experts can provide strategic direction for growing and scaling workforces.
• Project-based or seasonal peaks. When hiring and training new staff for peak periods or short-term projects, HR departments often need additional expertise without the cost of hiring permanent staff.

What are the Benefits of Fractional HR?

Fractional HR consultants offer multiple advantages compared to full-time employees or interim placements:

• Specialized, unbiased knowledge. Fractional candidates typically have 25 years, or more, of experience advising organizations on workforce matters through various transitions. Many have pivoted from a different business or taken a company public. They have the background to direct compensation and benefits strategy, organize succession planning and create an organizational culture that sets teams up for success.

They also bring an unbiased, broad knowledge base and thought leadership that may not be available in in-house HR departments.

• Cost-effectiveness. A fractional HR model enables organizations with limited resources to utilize HR expertise on a part-time or project-based basis at a fraction of the cost of a full-time employee.
• Speed. Fractional HR consultants have “done it all before” and fluently navigate organizational politics. They know how to form relationships, address gaps, and ramp up quickly to mitigate risk. They also have the gravitas to pull resources, make recommendations and direct teams.
• Flexibility. With fractional HR, organizations can control the number of hours and level of assistance needed according to fluctuations in HR demands and company budget. During strategic restructuring, recruitment periods, peak seasons, special projects or downsizing, organizations can rely on fractional HR professionals to deliver tailored strategies while remaining agile.
• Focus. Fractional HR leaders are laser-focused on HR. By entrusting HR functions to these experts, companies can refocus resources on their core competencies, allowing them to reduce the administrative burden of HR, streamline operations and concentrate on primary objectives.

How to Get Fractional HR Right

An experienced search firm can ensure your organization hires a fractional HR professional that meets the needs of your unique situation.

To find the right partner, make sure your trusted search firm:

1. Performs a thorough needs assessment. An HR services firm should begin any engagement with a complete evaluation of your organization’s goals, capabilities and needs to understand the specific skills, roles, and expectations of a fractional HR leader.
2. Conducts a rigorous vetting process. The candidate vetting process is critical to ensure fractional HR individuals have the right skill sets and experience to match an organization’s particular needs. Confirm that your HR firm has the right relationships, reputation, and track record.
3. Offers additional HR services and ongoing support. Besides providing fractional talent acquisition, look for a professional services firm offering various placement services, including interim and retained search. A fractional HR leader may recommend bringing on additional help to fulfill temporary business needs or hiring a permanent executive role, so your HR firm should have a bench of talent and support services to build the recommended workforce strategy.

hrQ is a Trusted Partner for Fractional HR

Fractional HR is one of hrQ Inc.’s core competencies. We are not the only company providing fractional HR services, but we know what good HR looks like. We have 25 years of experience and a proven track record of referenceable clients with successful placements.

We specialize in people functions, but clients appreciate that we attract and contract with fractional HR experts who are businesspeople first. Our managing directors have long-standing relationships with motivated HR experts who want to make a meaningful impact and meet clients where they are in their business cycle.

hrQ is also one of the country’s top interim and executive search firms. The fractional experts we match with organizations often refer us to find the ideal match for a permanent HR role or to source our extensive bench of talent for interim needs.

Reach out to hrQ to leverage our expertise to map out your talent needs and navigate a plan for success at every step of your workforce journey.