You Don’t Need a Full-Time Executive to Get C-Suite Expertise. Here’s Why.

Opinions expressed by Entrepreneur contributors are their own. Key Takeaways Post-Covid-19, more people are seeking out flexible roles and the ability to work multiple part-time jobs. At the same time, a tough job market has produced a surplus of highly skilled workers, while many companies don’t have the funds to fill those roles full-time. Leadership roles are also simply growing more complex. Fractional executives work on a part-time basis, but they are still embedded in your team. They make decisions that drive outcomes and are responsible for what happens as a result. Hiring full-time workers is a commitment, especially at the C-suite level. As a solopreneur myself, it took me a long time before I had the resources to bring anyone on to help shoulder the responsibilities of running my business. But a lot has changed since I launched my company back in 2006. Now, fractional executives—leaders who share their expertise with organizations on a part-time basis—are quickly becoming the norm. In fact, research has found that the number of workers describing themselves as “fractional” has tripled since 2018; among executives, the most common limited roles are CFOs, followed by CMOs. For entrepreneurs, there are lots of good reasons to hire on a fractional basis. The right fractional executive can bring valuable expertise, fresh perspective and strategic guidance without requiring the long-term investment of a full-time hire. But it might not be right for everyone. Here’s my take. The rise of the fractional C-suite Several factors have conspired to create the recent boom in fractional work. Post-Covid-19, more people are seeking out flexible roles and the ability to work multiple part-time jobs. At the same time, a tough job market has produced a surplus of highly skilled workers, while many companies don’t have the funds to fill those roles full-time. Leadership roles are also simply growing more complex. Between the proliferation of hybrid work and AI adoption, it stands to reason that expertise is also becoming more varied. In general, high level roles are changing, with AI automating several functions previously handled by executives, like operations and reporting. On the other hand, demand for a la carte, specialized skills are on the rise — maybe your organization needs someone fluent in transitioning to an AI-powered workforce, but only on a limited-time basis. Fractional C-suites vs. consultants You’d be forgiven for thinking fractional executives are just consultants by another, buzzier name. But the truth is they’re quite different. The main distinction is that, while they do work on a part-time basis, fractional executives are embedded in your team. They make decisions that drive outcomes and are responsible for what happens as a result. Consultants, on the other hand, operate outside the organization. They make recommendations, but are not ultimately accountable for how things turn out. For example, a consultant can analyze your pricing strategy and show you a presentation on how they think it can be improved. A fractional CFO, on the other hand, will rebuild the pricing model themselves, and answer for the numbers at the quarter’s end. Before you hire someone touting themselves as a fractional executive, dig into the details of what they’re offering and make sure they — and you — understand the difference. When to hire fractional leadership — and when not to Fractional work may be a product of our current moment, but it’s also unlikely to go away any time soon. For entrepreneurs, the perks of such roles are many. Benefits packages, equity and long-term salary commitments are not part of the equation. You get the expertise without the long-term overhead, and you can scale the relationship up or down as your needs change. But fractional isn’t free of tradeoffs, and it isn’t right for every role. Start by asking a few questions: Is the work defined, or does it require someone deeply embedded in your culture? Fractional works best when you can point to a specific problem. But when the job is really about being present, knowing every person on the team and understanding the context, the fractional arrangement won’t hold up. Is this a phase, or a permanent need? In other words, can you picture the end of the engagement, like getting through a fundraise or preparing for an acquisition? If you know you’ll need this expertise indefinitely, you’re probably better off building toward a full-time hire. Is it purely financial? If you want a full-time hire but can’t afford one, go in with eyes wide open. The role will almost certainly outgrow the arrangement, and it will pay to be prepared for what happens when it does. As one long-time fractional CEO wrote on LinkedIn, organizations need to understand that they should not expect a full-time commitment — ”you’ll get my full attention when I’m with you, but my model is built on balance, not exclusivity,” she explains. Similarly, meetings and priorities should be collaborative, and there shouldn’t be an assumption that limited-time workers will be available at all times. It’s entirely possible that a fractional hire can turn into a full-time offer once the time is right. But understanding the role, its limitations and whether it’s the appropriate fit for your business is key. A fractional hire doesn’t need to feel like a compromise, because it shouldn’t be. Handled correctly, it’s a deliberate way to get the right expertise at the right time, without pretending your company needs something it doesn’t. Key Takeaways Post-Covid-19, more people are seeking out flexible roles and the ability to work multiple part-time jobs. At the same time, a tough job market has produced a surplus of highly skilled workers, while many companies don’t have the funds to fill those roles full-time. Leadership roles are also simply growing more complex. Fractional executives work on a part-time basis, but they are still embedded in your team. They make decisions that drive outcomes and are responsible for what happens as a result. Hiring full-time workers is a commitment, especially at the C-suite level. As a solopreneur myself, it took me a long time before I had the resources to bring anyone on to help shoulder the responsibilities of running my business. But a lot has changed since I launched my company back in 2006. Now, fractional executives—leaders who share their expertise with organizations on a part-time basis—are quickly becoming the norm. In fact, research has found that the number of workers describing themselves as “fractional” has tripled since 2018; among executives, the most common limited roles are CFOs, followed by CMOs. For entrepreneurs, there are lots of good reasons to hire on a fractional basis. The right fractional executive can bring valuable expertise, fresh perspective and strategic guidance without requiring the long-term investment of a full-time hire. But it might not be right for everyone. Here’s my take.