Jason Leverant serves as the President and Chief Operating Officer of the AtWork Group, an award-winning national staffing firm.
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Not only did the pandemic mainstream remote working, but it opened doors for a new hiring trend: Fractional executives.
Fractional team members are professionals with specialized skills who typically work flexible hours and schedules. It is common for them to work remotely. They are often seasoned executives who bring a vast wealth of knowledge and expertise to their roles. Unlike consultants, fractional employees are integrated team members. These executives get access to company resources and work collaboratively as part of the team.
Often dubbed as a form of gig work, fractional employment is in high demand. A recent survey conducted by McKinsey & Company reveals at least 36% of respondents categorized themselves as independent contractors versus 27% in 2016. Significantly, at least one-third of respondents who identify as independent contractors make more than $150,000 annually.
Overall, fractional executives appreciate the work-life balance, autonomy and income potential of their roles. This career path also allows them to flex their expertise on a variety of clients and projects.
Having fractional employees in the C-suite can be an asset for franchise brands focused on growth. We started franchising at my company in 1992 and now have more than 100 locations across the country. In accelerating our expansion, we recently turned to fractional C-suite team members to facilitate aggressive growth initiatives. These experienced leadership professionals have been able to provide insights and guidance to drive organizational success.
Pros Of Fractional C-Suite Team Members
There are many benefits to securing fractional staff:
• Cost savings: Startups and smaller companies often do not have the resources for a full C-suite team like larger businesses. If you are charting a course for growth, you can trim costs by turning to fractional executives. According to a study published by Indeed, hiring a new, full-time employee can cost up to $20,000, not including salary or benefits.
• Top talent: A fractional C-suite member is an expert in the industry. They do not need on-the-job training or mentoring to be successful on your team. As a franchisor, I've seen firsthand how having industry veterans can be an asset.
• Recruitment: At my company, we are relying on our fractional team members to help us identify full-time candidates. Fractional employees often have a network of resources they can call on to help you find the right person when you are ready to turn their role into a full-time position.
Tips For Hiring A Fractional Executive
With nearly two decades of experience in the staffing industry, I know finding senior-level candidates can be challenging. Here are some tips to determine if a fractional executive is the right choice.
1. Outline your goals. Before you start the search for a fractional candidate, it is important to outline your goals for the new role. Do you need someone who can cover a specific function, or do you need a strategic thinker? Having a solid grasp of your vision will enable you to find the right candidate.
2. Understand your budget. Once you have a solid grasp of what the new role entails, determine if your budget can handle bringing on a fractional executive. Even though it can cost less than a full-time employee, you will still need to pay a premium for their services.
3. Rely on your network. I have never advertised for a fractional role on my franchise support team. Networking is the best way to ensure you are getting a candidate with the experience and reputation you need.
4. Conduct due diligence. It is common for fractional executives to work for several brands at the same time. And if they have a good reputation in your industry, they may do business with some of your competitors. Make sure you thoroughly vet your candidate and implement proper confidentiality paperwork to protect your business.
Having the right leadership team is critical for achieving your goals. Engaging fractional resources could be the strategy that takes your franchise to the next level.
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