Fractional Work
August 25, 2024
We all know that the once typical 9-to-5 job has gotten a facelift. There’s remote work, hybrid work, and the gig economy among others. Another one to add to the list: fractional work. Fractional employment is similar to working part-time, but is usually practiced by seasoned executives. An executive may work for several companies simultaneously allowing him/her to impart wisdom and expertise to a company that may not otherwise be able to afford it (companies employing fractional employees are often closely-held and/or startups), or may work on a project basis similar to an interim executive or consultant. The most common fractional roles are those of the CFO and CMO. After all, finance/accounting and marketing veterans have experience that can usually be easily transferred from one industry to another. There isn’t much data on the recent growth of fractional work, but a posting from independent consultant network Catalant shows how the interest in the concept is growing, demonstrated by the company's own job postings (see chart below).
For employers, fractional work offers a number of benefits:
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Cost Savings: ability to hire experts without the expense of a full-time salary and benefits.
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Immediate Impact: Like project-based consultants, fractional executives can begin contributing right away.
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Flexibility: Businesses can scale the workforce up or down based on existing needs and forthcoming projects. They may also be able to keep the fractional executive for the long-run, or can part ways relatively easily since they are not on payroll.
For fractional executives, benefits include:
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Flexibility: Executives can set their own schedule and prioritize work-life balance as they see fit.
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Variety: Ability to take on different assignments and gain experience in new fields.
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Autonomy: Control and responsibility over their own tasks and projects
Of course flexibility, the key component of fractional employment, comes at a cost. Employers need to trust the fractional executives they hire are fully committed to that company, even if the executive is working for others, while executives need to continuously look for the next opportunity and may become overwhelmed from working on multiple projects simultaneously.
At Somar, we are fans of fractional work (though we know the concept more as “outsourced services”). We have a wonderful CFO with deep knowledge and expertise who is with us part-time. The arrangement works well for all involved and it will be a bittersweet day when Somar grows to a point where we will have to part ways.