What is Fractional Work?

What is Fractional Work?

Fractional work refers to the employment model where professionals offer their expertise on a part-time basis, allowing businesses to access specialised skills without the necessity of a full-time commitment. With references all the way back in the early 2000s, some say it has its roots in academia, where university professors have to divide their time between teaching, research and other responsibilities.

Two occasions in history marked the growth in popularity of fractional work: the Great Recession in 2008 and the Covid pandemic of 2020. Both brought about economic uncertainty, thus both resulted in businesses streamlining operation and looking for ways to reduce cost. Simultaneously, technological advances allowed for hybrid and remote working, meaning experts could join companies on a short-term or interim period from anywhere in the world, without the need for a long-term hiring and salary commitment.

Over the past decade, fractional work has transformed substantially. Today, it encompasses a diverse array of roles, from fractional CFOs to marketing experts, representing an evolution in the labour market responsive to both employer needs and employee desires. As more small enterprises recognise the value of this employment model, the future of fractional work looks promising, continuing to adapt to the changing dynamics in business and employment.

Fractional work is a great way for small businesses to onboard much-needed expertise at a fraction (geddit?) of the cost. Here are 5 reasons why you should consider hiring a fractional worker like ourselves to join your business and help your business grow.

5 Reasons to hire a Fractional Expert

#1: Cost-Effectiveness

Let's face it: the number 1 obstacle many small businesses face is a limited budget, especially when it comes to hiring. Often, small businesses need specialised skills to oversee a project in order to achieve the next stage of growth, whether it's the implementation of a new eCommerce website, or a review of one's supply chain. But such highly skilled expertise does not come cheap, and so small business owners are traped in this vicious cycle.

Fractional hiring allows businesses to tap into specialised skills and high-level expertise without the financial burden associated with maintaining full-time employees. It offers a flexible solution that can significantly reduce salary costs while providing enhanced operational support.

In addition, the reduction in overhead costs is another big tick in the "cost saving" column. Full-time employees typically incur additional expenses such as office space, equipment, and utilities. Fractional hires, on the other hand, often work remotely or require fewer resources, translating to lower overall operational expenses. This flexibility aligns with the cost-management strategies small enterprises often adopt to enhance profitability.

Additionally, fractional work eliminates the long-term obligations associated with full-time employment, similar to employee benefits such as retirement contributions and health insurance. Therefore, whether you're looking at it from a salary compensation perspective, or a resource and overhead point of view, fractional work stands out as an economically sound strategy that permits small enterprises to thrive in a driven economy.

#2: Access to Specialised Skills and Knowledge

In today’s economic and business landscape, the concept of fractional work has emerged as a strategic and affordable solution for small enterprises seeking specialised skills and expertise. Fractional experts, such as eCommerce strategists or digital consultants like us, provide businesses with access to high-level competencies that may be too costly or impractical to employ on a full-time basis. This approach allows small businesses to engage professionals with deep knowledge in their respective fields, thereby enhancing overall project outcomes and innovation capacity.

By leveraging fractional talent, small businesses can address complex challenges with the guidance of seasoned professionals who possess a wealth of industry-specific experience. These experts often bring fresh perspectives and innovative solutions that can lead to significant advancements in business practices. For instance, employing a fractional eCommerce Director allows businesses to tap into the expertise of an eCommerce specialist who can identify hindrances to conversion and any customer pain points that are preventing payment and purchase. They will often be able to identify solutions to problems that small business owners may not have been aware existed in the first place, which can lead to significant improvements in business strategy, process and/or critical path, and, in turn, increased revenue.

#3: Flexibility and Scalability

Fractional work and fractional hiring enables businesses to engage professionals on a flexible basis, ensuring that their workforce can adapt seamlessly to varying demands. One of the most prevalent advantages of fractional work lies in its flexibility as well as scalability; small businesses can hire experts tailored specifically to their current projects and requirements without the long-term commitment associated with traditional employment.

Most fractional workers work on a monthly retainer or contract, therefore small businesses can sign on fractional workers for the short term or interim period they need, whether it's to oversee a project when it comes up, or just for a short period (e.g. 6 months) to soak up their expertise and learn from their insights. This allows small businesses to fully control their payroll and workforce according to the ups and downs of trading periods.

Small enterprises face numerous challenges, including fluctuating workloads and budget constraints. Fractional experts provide the agility needed to navigate these challenges effectively, enabling small enterprises to remain competitive, adapting quickly to changes in the market or specific project needs.

#4: Risk Mitigation

Due to the fact that fractional workers are essentially short-term, temporary, interim or seasonal team members, businesses can significantly lessen the uncertainty associated with hiring full-time employees. This approach enables companies to focus their resources strategically, particularly during crucial transitions or when launching new initiatives.

For instance, a small enterprise might suddenly need for expertise in digital marketing as it prepares to launch a new product. By bringing a fractional marketing expert onboard, the business can gain valuable insights and access to industry best practices without committing to a lengthy recruitment process. This arrangement not only accelerates project execution but also lowers the financial burden of full-time salaries, benefits, and overhead costs associated with permanent hires.

Furthermore, temporary experts can be instrumental during periods of organisational change. Whether a company is restructuring, facing a merger, or adapting to new regulations, fractional specialists can provide the required expertise without the need to consider HR factors such as redundancy arrangements, because they are working on a temporary basis to begin with. Their experience allows small businesses to avoid common pitfalls while implementing effective strategies tailored to their unique situations. This adaptability is key in maintaining operational efficiency and ensuring business continuity.

#5: Networking

Perhaps not a factor that would immediately come to mind, but one that is vital for small businesses to grow. Fractional experts and professionals often come with a wealth of experience from various industries, meaning they also bring with them an industry version of a Little Black Book, whereby they have years of industry contacts and networks that small businesses would otherwise be unable to tap into.

Therefore, fractional workers can facilitate networking opportunities, and help small companies can build strategic relationships that drive growth and expand their market reach.

What is the difference between a consultant and a fractional worker?

Consultants are often external hires to come onboard for a specific project or task, whereas fractional workers essentially join your team and become part of the business. This means that they and their expertise are at your disposal for everyday use, not just specific to a particular project.

In addition, consultants assess and diagnose the problem or project at hand, and come up with recommendations and solutions, but normally do not implement any changes. Fractional workers, on the other hand, will get involved in the execution of any recommendations, because they are part of the team.

For instance, if your business is looking to roll out a new eCommerce experience, a consultant will provide tips and recommendations on how best to build your website, user experience and customer journey. A fractional eCommerce Director or Manager, however, will not only provide the aforementioned insights and knowledge, they will be there to help your team implement the vision, or, if you don't have a web design team, help execute the design and plan.

What is right for me?

At Mpowering Solutions, we provide both consultancy and fractional work within the realms of digital, eCommerce, website and business strategy. If you need help to take your business to the next level, but are unsure of which service is right for you, get in touch and we can book a FREE discovery call to understand your needs better.

Get in Touch

Ready to talk? Simply curious? Send us a message and we'll get back to you to start your digital and eCommerce journey