Fractional HR

What is fractional HR?

Fractional human resources (HR) refers to a model where companies hire HR professionals on a part-time or limited basis rather than having a full-time, in-house HR staff. This can be especially beneficial for small to medium size organizations that may not have the workload or resources to hire a full-time professional but still need expertise in the area.

What is the difference between fractional HR and outsourced HR? 

Fractional and outsourced HR provide alternatives to traditional in-house HR departments. To better understand the differences between the two, let’s take a look at a brief definition of what each type of service seeks to provide: 

• Fractional HR: Involves hiring a team member (or a few team members) to work on a part-time basis with your existing HR team. The scope is generally more strategic, and this fractional HR team often offers a more personal relationship with the organization, integrated into the company’s culture and strategic planning processes. 

• Outsourced HR: Involves hiring an external HR service to handle all or some of your specific HR functions. The scope can be broad or specific, for example, an outsourced HR may take over tasks such as payroll processing. The outsourced HR team often has multiple clients and offers a more transactional and process-driven relationship. 

HR tip

If you are considering hiring fractional HR services for your organization, make sure that the HR professional or team you’ll collaborate with understands your business needs and company culture. This way, they will be able to provide tailored solutions without compromising the effectiveness of a traditional HR department.

What are the benefits of fractional HR?

A few of the top benefits of fractional HR services include: 

1. Flexibility

Companies can adjust the level of HR support based on their changing needs. Some companies opt to adjust their levels of HR services based on the cycles of the business. For example, they might increase the services during hiring or restructuring.

2. Cost-savings

The costs associated with hiring a fractional HR team are less than paying a full-time HR staff in-house. Small to medium-sized companies might not have enough tasks to keep a full-time professional busy. By using fractional HR, businesses only pay for these services when needed.

3. Expertise

Fractional HR gives organizations the chance to bring in high-quality experts with diverse experience from various industries and extensive expertise in HR. In most cases, fractional HR services can give you instant access to the specific skills needed at that time.

4. Address specific needs

Fractional HR might provide your HR team with specific knowledge that they might not have. If your team is simply not able to deal with certain tasks, such as navigating complex compliance issues, fractional HR provides the flexibility to address these needs without having a full-time in-house HR staff.

5. Broader perspective

Bringing in a fractional HR team that isn’t directly connected to your in-house HR team can introduce a fresh perspective. This exposure might help you identify weaknesses or areas where your HR team might require additional support. 

What is the fractional HR manager job description? 

Undoubtedly, the human resources department plays a vital role in the operations of your business. The question is, “What is an accurate job description for the work that a fractional HR manager does?” Let’s take a closer look at some of the tasks involved in this role:

• Short-term project leadership: Taking on a leadership role in the various short-term projects associated with the human resources department. They will demonstrate clear direction, ensuring successful outcomes that align with the organization’s objectives. For example, lead specific HR projects with defined timelines, such as company-wide audits, culture initiatives, or compensation reviews, bringing them to completion within the set period.

• Transition management: Assisting the organization during periods of transition. This could be the growth stage of a company, mergers, and restructuring, or even the promotion of certain individuals within the organization. Fractional HR managers will ensure continuity in the HR processes and minimize disruptions.

• Scalable HR system implementation: Developing and implementing HR systems suitable for rapidly growing organizations, understanding their needs, and researching the best systems to fit those needs. As the company grows, it’ll continuously monitor and adjust these systems, ensuring they remain effective and efficient.

• Gap analysis and recommendations: Evaluating existing HR practices in client companies and finding areas of improvement is one of the primary roles of a fractional HR manager. They will deep dive into the existing processes, identify gaps, and provide actionable steps or strategies to address them.