The trend of companies searching for high quality Fractional employees to work with has been growing at a significant  pace.

As an example, if we take a look at the search trends over the past five years for the term “Fractional CMO”, you can see that it’s been nearly doubling year on year for the last three years.

Hiring “Fractional” is now a common consideration of any senior leadership team that is thinking about how to bring in some of the best talent, to benefit from their strategic experience, to allow them to support their objectives without the costs of an FTE.

That being said, there has been a lot of crossover and misunderstandings  when it comes to companies knowing what they get with a Fractional hire versus a consultant.

In a quest for clarity and to understand why businesses are now favouring Fractional relationships over consultants, we recently hosted an Infraction community discussion on the topics of what it means to be Fractional, what makes a Fractional relationship different to consulting and some of the considerations  that every company should be aware of when looking to hire specialised help.

These sessions draw on the countless years of experience of the Infraction community of Fractional Leaders.

With a mix of knowledge across all business functions from marketing to finance - our most recent session was enlightening to say the least.

So let’s start by understanding the basics…

What is a Fractional Executive?

In a nutshell, a Fractional Executive is someone who brings all of the expertise needed to holistically perform a specific role inside a company on a part time, interim or project basis.

These roles are common in key leadership positions like CMOs, CFOs, COOs and CTOs because of their heavy leaning towards strategic based value.

These are positions that require domain expertise and industry experience to perform at the highest level.

Comparing Fractional Executives and Consultants

So let’s look at the tangible differences between what companies get when making this kind of hire. 

Integration & Leadership

A clear driving factor for companies making the move to hire Fractional Executives is the benefit that they get from having a partner that is truly integrated into the organisation.

Unlike consultants who typically advise from afar (often with one point of contact into the business via an executive), Fractional Executives are embedded within the business, participating in relevant meetings, managing teams and direct reports.

In a recent Infraction community session, PJ Santoro, a Fractional CMO and founder of C-IQ with many years experience working with the likes of Nike, Sony and Levis told the group how “I’m not just advising from the sidelines; I'm in the meetings, making decisions, and actively leading strategies.

While a consultant can act from the outside to guide a company to solve a specific problem on a narrow scope, companies are starting to see the real benefits of hiring a Fractional to be fully integrated and lead a business function, a fraction of the cost (excuse the pun but at least it’s out of the way now).

Empowerment & Autonomy

Infraction community member Anita Chauhan, a seasoned Fractional working with startups like Oomple and MedBox RX, recently discussed how she makes it clear with clients that autonomy is absolutely necessary for a Fractional relationship to work for her and her clients.

"As a decision-maker, autonomy and trust are inseparable. You're hiring me for my extensive experience, particularly with early-stage startups, which means you recognize the value I bring. We've mutually vetted each other, so it's essential that you trust me to lead and make decisions. This trust is fundamental, because it enables me to effectively do the job you've hired me for."

Many of the executives in the Infraction community share the same sentiment.  Autonomy has been raised as a high priority when it comes to negotiating contracts with potential clients and setting clear expectations about the scope of the role.

While this is clearly a benefit for a Fractional as they are enabled to do their best work, the wins for the client are also obvious:

• Less micromanagement

• Faster decision making

• Increased innovation

• Greater accountability

• Deep understanding of company goals

By entrusting Fractional Executives with autonomy, clients not only empower these leaders to perform optimally but also gain significant advantages that can lead to accelerated growth and improved operational efficiencies.

It may be harder to get the same benefits when working with a consultant due to the fact that they are typically treated as an outside voice or advisor to one or two members of the team who hold that relationship. 

Responsibility & Accountability

With empowerment and autonomy comes increased responsibility and accountability.

A Fractional hire is made to fill a specific role that is tied to a clear business outcome. The responsibility to deliver this outcome is far higher than a consultant as the Fractional is, as we’ve mentioned earlier, responsible for the strategy and implementation of tactics to achieve business goals.

While a consultant can be abstracted away from the day to day business activities, this isn’t really an option for a Fractional hire as they are treated as a fully integrated team member.

You can see how any business (from startup to enterprise) that needs specific expertise in a targeted area would get a tremendous amount of value from a hire like this. 

What are the challenges that businesses face when hiring Fractional Executives?

While there are many benefits of hiring fractionals over a consultant, it’s not without its challenges.

As PJ said in our recent session, “When you bring in a fractional, it is your role and responsibility to integrate them."

There is a clear requirement for companies to spend time on integration, especially when the hire is at a senior level - which these roles regularly are.

Taking a top down approach to this is highly recommended. Having the CEO introduce the fractional as part of the team so that everyone in the company has a clear understanding  of their responsibilities is crucial.

If this is not done well from the outset, there can be ambiguity regarding the fractional executives authority level, rendering them less effective.

Many companies are used to working with outside consultants and contractors via a meeting or two a month to get guidance and align on deliverables, but a fractional role requires far more time up front to embed the hire into the team and set them up for success.

Should your company hire a Fractional Executive or a consultant?

As always, before making any new hire, you should start by assessing the strategic needs of your company.

Take into account where you’re currently at when it comes to the relevant business function you’re looking to improve - assess  budget constraints, long-term goals and the in-house ability to achieve those goals.

Here are some helpful questions to ask yourself:

• Does your business require seasoned leadership but cannot yet support a full-time executive?

• Are you navigating a transition or transformation phase that requires expert guidance?

• Is there a need for deep integration and ongoing involvement in your leadership team to effectively drive the desired changes or strategies?

• Do you require a leader who can not only advise but also implement and be accountable for outcomes, bridging the gap between strategy and execution?

• Could your business benefit from a leader who has broad industry experience and can bring fresh, innovative perspectives that align with long-term strategic objectives?

If the answer to any of the above is yes, a fractional leader could be the ideal solution for you company

The trend of hiring Fractional Leaders will continue

We live in  a post-pandemic world where remote or hybrid working has become the new normal (especially for startups and more tech enabled businesses).

This is all part of a broader trend towards businesses valuing  flexibility and  cost-efficiency without needing to sacrifice the deep expertise that used to be limited by geography.

At Infraction, we championing this model because it aligns with the growing needs of modern businesses, offering a blend of strategic insight and practical implementation that is hard to match through traditional consulting.

Right now, it’s hard to beat.

Discover the Future of Leadership

Ready to embrace flexibility, expertise, and integration? Explore the possibilities with Infraction’s community of Fractional Leaders at infraction.io. Join us today and redefine your approach to success.