Fractional work

Fractional work, also known as fractional employment, fractional professionals or fractional executives, refers to a work arrangement where an individual provides specialized skills or (management) services to multiple organizations on a part-time or project basis. This work model has gained popularity in recent years due to the increasing demand for flexible and cost-effective solutions for businesses to access specific expertise.

Difference fractional work, part-time and contractor work

Part-time employment or part-time job typically involves working fewer hours than a full-time employee, usually less than 35 hours per week. Part-time employees are usually entitled to receive some of the same benefits as full-time employees, such as holiday pay, sick pay and pro-rata pension scheme. However, they may not receive all the same benefits as full-time employees and may not have the same job security.

Contractor work involves working on a short-term basis for a specific project or service, often as an independent contractor or freelancer. Contractors are usually paid on a project basis or hourly rate and are responsible for paying their own taxes and expenses. Contractors typically work on project basis and have more control over their schedule and work arrangements.

Fractional work is a newer term that refers to working either part-time or full-time, but not in a traditional job with a single employer. Instead, fractional workers work for multiple clients or employers, sometimes remotely sometimes onsite, and may offer specialized expertise. Fractional work can be project-based or ongoing, and may involve a higher level of autonomy and flexibility than traditional part-time employment.

Types of Fractional Workers

Fractional executives are experienced professionals who hold executive roles (CxO), such as CEO, CFO CFO, CMO, CIO, or COO, in multiple organizations simultaneously. They offer strategic guidance and management expertise to companies that may not require or cannot afford a full-time executive. The common factor is that these CxO professionals have held these positions before at other start-up, scale-up or corporate companies before.

Fractional professionals are experts in their respective fields, such as finance, marketing, human resources, or information technology, who provide their specialized skills and services to multiple clients. They typically work on a contract or project basis and can be found across various industries.

Fractional freelancers are self-employed individuals (self-employment) who offer their skills and expertise in specific areas on a per-project basis. They usually have a diverse clientele, which may include businesses, non-profit organizations, or even individuals.

Marketplaces and Platforms

Although Fractional work, workers, professionals and executives are a relatively emerging development and trend, there are some notable marketplace and platform examples. In 2022, US-focussed product specialist marketplace A-team announced that it had raised $55 million in funding from a group of investors. In 2023 European-focussed fractional professional platform 10x came out of stealth mode. Other marketplaces in the fractional professional and executive workspace include $12m funded Continuum and Shiny.

Advantages and Disadvantages

There are several advantages of hiring fractional professionals or executives. Fractional workers often have a certain set of experience and knowledge in their specific fields. Organizations can adjust their workforce based on their changing needs and requirements. Fractional professionals can provide connections and relationships to benefit the businesses they work with. Fractional workers can help organizations grow and expand more efficiently. Companies can access specialized skills and experience without incurring the costs of hiring a full-time employee.

The disadvantages of working fractional are for example limited availability where fractional workers' part-time nature may result in limited availability or commitment. Fractional professionals may experience difficulties integrating into a company's culture or fully understanding its unique needs and goals. Working with multiple clients may lead to potential conflicts of interest or confidentiality issues.

Legal and Regulatory Considerations

Companies engaging fractional workers should be aware of the legal and regulatory aspects of these working arrangements, such as employment laws, taxation, and intellectual property rights. It is essential to establish clear contracts and agreements that outline the nature of the relationship, compensation, responsibilities, and any other relevant terms.

Future of Fractional Work

As technology continues to advance and the global economy evolves, the demand for specialized skills and expertise is expected to grow, making fractional work an increasingly attractive option for both workers and organizations. Remote work and digital collaboration tools will likely continue to facilitate the growth and acceptance of fractional work arrangements. There are several indications of the market size with one source claiming it is over +$500b. 60% of executives believe fractional work is seen as the best way to organise businesses to add value for employees and organisations and this percentage is expected to grow. After the gig-economy has reached the professional level, it has recently also reached the board-room with fractional CxOs.

See also

• Gig worker
• Remote work
• Part-time job
• Interim management
• Fractional executive
• Fractional CIO