Fractional roles: Isn’t this just consulting?
People in fractional roles contribute a portion of their time to a single company such as 1/4 or 1/3, unlike full-time employees who must comply with set hours and company schedules. Their high level of expertise allows them to perform an advisory role for companies that don’t need or can’t afford a full-time executive at that level.
Fractional roles emerged as an alternative title to “part time” because let’s be honest, it sounds a lot better than saying part time. But really, it’s just consulting. There, I said it. Marketers be marketing, making up words again. Can we really help it, though?
Fractional CFO (rawrrr) or part-time finance director (womp womp)?
The intention
The basis behind the argument for fractional advisory is that you can bill at a very competitive rate, while limiting the amount of work that you will do for the company.
This benefits the company because everything is clearly scoped and less expensive than hiring the person full time.
The fractional advisor benefits from an arrangement where you aren’t at the whim and disposal of the company, can manage your work life balance, and potentially have higher earning potential when you take on multiple clients. You provide the contract, which means you can do your best to define the scope and then stick to it.
Make sure you never agree to that “other duties as assigned” line!
The reality
Fractional roles may sound appealing, but they often come with unexpected challenges.
There’s nothing worse than ending up in a purgatory of full-time expectations but part-time pay.
Not a part-time worker: Your expertise impacts the business beyond the hours you contribute. Your value is measured by your impact and results.
Not a consultant: You don’t just evaluate issues and offer solutions; you must also execute those solutions and face the challenges that arise.
Not a freelancer: You don’t just accomplish tasks based on your skills; you develop and present strategies, often without the influence or budget autonomy of a leadership role.
Additional responsibilities: You might be given leadership-like responsibilities without the corresponding pay, and you may need to think about how to creatively and bravely adhere to boundaries.
CFOs have fractional work down - why?
If we’re doing it right, we’re using our fractional experts for the exact thing that is in their zone of genius, and nothing else.
With Fractional CFOs, there’s a set of standards for accounting and financial planning that makes the role somewhat predictable and standardized across the industry.
But in an industry like marketing, where huge expectations are always in the balance, and there are a million strategies or ways to get to the goal, there are just too many variables at play to be able to limit the scope or ask everyone to just hustle harder.
Why are these roles popular?
On-demand work has become a present-day reality, driven by the current economic climate, the rise of independent professionals, and companies' cautious investment strategies.
Fractional experts offer crucial support to individuals holding multiple roles, such as startup CEOs, allowing them to focus on their main responsibilities. They are ideal for projects requiring specialized knowledge and skills for a limited time, such as product marketing for a launch, building content flywheels, or setting up a sales program that converts highly.
Companies benefit from hiring fractional experts so they can get access to the brightest minds in their industry, expanding the impact of their talent pool, but on a budget.
Benefits for companies
Access to talent: Companies gain access to top-tier talent with specific expertise.
Cost savings: Fractional workers reduce costs as they do not receive full-time benefits.
Reduced impact of layoffs: Letting go of fractional workers doesn’t impact the company’s image as much as full-time layoffs might.
The main trap is the mismatch between pay and expectations. Employers may expect full-time dedication while offering only part-time compensation, leading to burnout and dissatisfaction.
Considering a fractional role?
While fractional roles offer benefits like additional income, flexible schedules, and learning opportunities, you need to consider the expectations:
Set clear boundaries: Define your availability, workload, and responsibilities upfront and document them in your contract, you need to prevent burnout, your health comes first.
Agree on goals: Establish specific, measurable goals to prevent scope creep and ensure mutual understanding.
Regular check-ins: Schedule regular reviews to adjust expectations and address concerns.
Trapped in the worst version of a fractional role?
If you find yourself overwhelmed in a fractional role:
Reassess: Evaluate if you are doing more than initially agreed upon.
Communicate: Discuss discrepancies with your employer and propose adjustments.
Renegotiate: Clearly outline the scope of work, hours, and compensation in a revised contract.
Seek advice: Consult a mentor, career coach, or legal professional for guidance.
Consider leaving: If adjustments aren’t made, it may be time to find a new opportunity that aligns with your goals and values, before deciding this you need to ask yourself if you should stay or leave, and the answer depends on your situation.
While fractional roles can offer flexibility and access to specialized skills for companies, they can also lead to challenges for workers if not managed properly. By setting clear expectations and maintaining open communication, both companies and fractional experts can benefit from this working arrangement. However, if the role becomes untenable, professionals should be prepared to advocate for themselves or seek new opportunities.
