Fractional Hiring: Your Ultimate Guide in 2024

Here’s something to consider: what if you can get next level assistance, and only when you need it? We’re talking about having the support of an executive virtual assistant flexible enough to adjust to the exact hours of your changing daily needs. That’s the competitive advantage that comes with going fractional.

In this article, we will be sharing a comprehensive guide to fractional hiring, talking about what it is, its advantages and disadvantages, and more for both employers and employees.

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What Is Fractional Hiring?

In a nutshell, fractional hiring is the practice of hiring contractors to fulfill specific roles within your organisation.

Unlike traditional full-time and part-time hires, fractional employees work on a fractional basis, dedicating a flexible and adjustable portion of their time and expertise specifically tailored to meet your needs.

Part-Time vs Fractional

Due to most fractional contracts specifying fewer service hours compared to full-time employees, fractional employees are commonly mistaken for part-timers.

That said, it is important to keep in mind that fractional employees are contracted specifically for certain tasks and projects with flexible and adjustable hours that allow for greater flexibility and scalability.

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What Is a Fractional Contract?

A fractional contract outlines the terms and conditions of the arrangement between the employer and the fractional employee. It specifies the scope of work, the duration of the contract, the compensation structure, and other important details.

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What Is a Fractional Employee?

A fractional employee is a skilled professional who offers their expertise on an as-needed basis. From personal assistants and executive assistants to customer support and creative specialists, fractional employees encompass a wide range of roles and responsibilities, catering to the diverse needs of high-performing individuals and businesses.

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What Is a Fractional Executive?

A fractional executive is a high-level professional who provides strategic leadership, support, and guidance to businesses on a fractional basis. These seasoned experts bring years of industry experience and insight, offering invaluable advice and support without the commitment of a full-time hire.

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The Best Roles to Consider Hiring on a Fractional Basis

There are plenty of roles you can definitely consider to get on a fractional basis. Here’s just some of the most commonly preferred by our own clients:

• Personal assistant

• Executive assistant

• Marketing specialist

• Sales representative

• Social media manager

• Administrative assistant

• Human resources coordinator

• Customer support representative

You may also check out our previous post on the different types of virtual assistants to give you an idea of more roles and responsibilities that you can fill on a fractional basis.

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The Advantages of Going Fractional for Employers

The fractional method offers several advantages for employers, providing incomparable flexibility, cost efficiency, access to specialised talent, and scalability. Here are just some of the key benefits:

Flexibility

Going fractional allows employers to scale their workforce up or down based on their fluctuating needs, without the commitment of full-time hiring.

Cost Efficiency

It can be more cost-effective for employers, especially when compared to traditional hiring. By only paying for the hours worked or the services rendered, employers can significantly reduce overhead costs such as salaries, benefits, and office space.

Access to Specialised Talent

It allows employers to access specialised talent that may be difficult to find or unnecessarily pricey to afford on a full-time basis. They can hire a fractional expert with specific skills to quickly fill gaps in their workforce or just to tackle special projects.

Reduced Administrative Burden

Fractional employees often work as independent contractors or through companies like HireHarbour, which can reduce the administrative burden on employers. Many of them are also responsible for managing their own taxes, benefits, and other administrative tasks, freeing up time and resources.

Diverse Perspectives

It allows employers to bring diverse perspectives and experiences to their teams. They can hire fractional employees from different backgrounds, industries, and geographic locations, enriching their team with new ideas and approaches.

Risk Mitigation

IT can help mitigate the risks typically associated with traditional employment such as employee turnover, layoffs, and legal liabilities. Employers have more flexibility to adjust their workforce without long-term commitments and reduce the impact of unforeseen changes or disruptions.

Scalability

Finally, this method enables employers to quickly scale their workforce to meet growing demands of seasonal peaks. They can easily onboard additional fractional employees as needed without the time and resources required for traditional hiring processes.

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The Disadvantages of Going Fractional for Employers

While this method offers numerous advantages for employers, there are also some potential disadvantages to consider. These include:

Limited Availability

Fractional employees may have limited availability, especially if they’re working with multiple clients or have other commitments. This can pose challenges in scheduling meetings, coordinating projects, and ensuring timely delivery.

HireHarbour prevents this by providing our executive virtual assistants with dedicated communication and time management training. In addition, we also set time monitoring and client services systems that limit the number of clients that they work with, with plenty of extra hours to account for ad-hoc tasks and potential scheduling challenges.

As an example, our HarbourAssociates are only allowed to work with a maximum of two clients at a time.

Lack of Full-Time Commitment

Fractional employees may not have the same level of commitment or loyalty to the organisation as full-time employees. They may prioritise other clients or projects over their employer’s needs, leading to potential conflicts or inconsistencies in service delivery.

HireHarbour allows clients to request for a HarbourX who’ll work exclusively for them to specifically prevent this potential issue.

Coordination and Communication Challenges

Managing a team of fractional employees can be challenging, particularly when it comes to coordination and communication. Employers may need to invest additional time and resources in ensuring effective communication channels and collaboration among team members.

At HireHarbour, our clients receive next-level attention and assistance from a client success manager. They can help ensure that coordination and communication run as smoothly and as seamlessly as possible.

In addition, you won’t need to invest in a separate communication channel or platform as our HarbourX’s are trained and well-versed to use the various tools (including messaging applications) to ensure that they are fully equipped to use the one you’re already using.

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The Benefits of Fractional Contracts for Remote Workers

Fractional contracts don’t just work for employers. They offer multiple benefits for remote workers too. Here are just some of the key benefits:

Flexibility

Fractional contracts allow remote workers to have greater control over their schedules and workload. They can choose the number of hours they work and the projects they take on, which enables them to balance their professional and personal commitments more effectively.

Work-Life Balance

Speaking of balance, fractional contracts also allow remote workers to better set professional boundaries that can help them prioritise their well-being.

For instance, this set-up allows them the freedom to work from home or any location of their choosing that can significantly reduce the stress and burnout associated with traditional office environments.

Autonomy and Independence

Fractional contracts empower remote workers to take ownership of their work and make decisions autonomously. They have the freedom to manage their projects, set their goals, and implement their ideas, fostering a sense of ownership and accountability in their work.

Reduced Commute and Overhead Costs

Finally, professionals can eliminate the need to commute to a physical office by offering their services on a remote, fractional basis.

They can save time and money on transportation expenses and significantly cut down on overhead costs such as those made on office wear, meals, and childcare, leading to greater financial flexibility and savings.

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The Downsides of Fractional Contracts for Remote Workers

Indeed, there are plenty of benefits to being a fractional worker. That said, there are potential downsides too. Here are just some of them:

Lack of Benefits

Remote workers on fractional contracts may not have access to benefits that those who are traditionally employed enjoy such as health insurance or paid time off.

This lack of benefits can impact their financial security and well-being as they are typically responsible for covering their own healthcare costs and managing their time off without compensation.

At HireHarbour, we take pride in providing our HarbourX’s multiple benefits that are typically only enjoyed by traditional full-time employees, such as health coverage for them and their dependents as well as paid time off.

In addition, we also provide them with equity incentives which vest over several years. Our HarbourX’s aren’t just employees. The most loyal among them become our business partners as legitimate shareholders of the company.

Limited Job Security

Fractional contracts may not offer the same level of job security as traditional full-time employment.

Unfortunately, a lot of these professionals are more vulnerable to layoffs, contract terminations, or changes in client needs, leading to periods of unemployment or underemployment.

When you’re with HireHarbour, you’re not working under random clients, you’re working with us. This protects our HarbourX’s from the usual vulnerabilities and risks that come with remote and fractional working.

Most of our clients are also high-performing business leaders in established companies.

Isolation and Loneliness

Lastly, remote workers on fractional contracts may experience feelings of isolation and loneliness as they lack the social interaction and camaraderie that comes with working in a traditional office environment.

They might also find themselves lacking the necessary support they need, especially in performing certain tasks that might be beyond their current skill level or expertise.

That doesn't happen when you roll with HireHarbour. We have a fun, healthy, and positive work culture that promotes teamwork and collaboration.

Some of the team engagement we practice are having monthly virtual socials, celebrating an annual company, all-paid off-site (where kids are invited too!), and providing a wider corporate structure that allows team members to hangout and chat, when needed.

In addition, we make sure that our HarbourX’s don’t work alone. They also gain exclusive access to our in-house team of specialists in various areas that can provide support when needed.

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Signs That You Should Consider Fractional Hiring

Now that we have covered the different aspects of this hiring setup, here comes the important question: will it work for you?

Allow us to help you out. Here’s a quick list of the signs that suggest this method could be beneficial for you:

• You’re overwhelmed.

Are you constantly struggling to meet your goals and beat your deadlines? Do you feel consistently burdened by tasks?

It can help alleviate that burden by providing extra hands to keep you on track with your goals, work on your projects, and take care of your never-ending to-do list efficiently.

• A seasonal peak is coming up.

It’s normal for businesses to experience fluctuations in workload due to seasonal demands and cyclical trends.

Going fractional allows you to scale your workforce as needed, ensuring you have the right level of support at all times.

• You have specific skill gaps (or in need of specialised expertise).

You can’t be an expert on everything and fortunately, you don’t have to be. You only have to identify the skill gaps hindering you from productivity or growth and this setup can help address them effectively.

In addition, it also enables you to access a diverse pool of talent with the specific skills and experience needed to successfully execute certain projects or initiatives.

• You have a limited budget (or you’d rather spend it elsewhere).

It offers a cost-effective alternative to traditional arrangements. That’s because you’ll only be required to pay for the specific hours worked or services rendered.

Its remote aspect can also save you from other costs and resources that a full-time employee would otherwise consume.

• You want to test the waters first.

Still unsure whether you really need the extra help or not? Want to meet your assistant and see how you work together before making a long-term commitment? Going fractional offers the opportunity to “test the waters” with potential long-term hires before the need to make that decision.

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How to Choose Your First Fractional Executive Virtual Assistant

Ready to experience the game-changing power of a fractional executive virtual assistant? Here’s a quick checklist to help you out:

1. Define the role you need.

• Identify your assistant’s job responsibilities and duties.

• Set the level of authority and decision-making power.

2. Make a list of your required skills and qualifications.

To start, look for someone who has...

• Strong organisational and time-management skills

• Excellent communication skills, both verbal and written

• Proficiency in your preferred work software, tools, and platforms

• Experience in managing schedules and coordinating meetings

• Ability to handle confidential information with discretion

• Strong problem-solving skills and adaptability

3. Make a list of your required experience and background.

To start, look for someone who has...

• Relevant work experience as an executive assistant or a similar role

• References or recommendations from previous employers

• Background in your industry, if applicable

4. Consider your applicant’s personality and cultural fit.

Ideally, your EA...

• Is compatible with your working style

• Aligns with your company culture and values

• Has a positive attitude and professional demeanor

• Has the ability to work under pressure and handle stress

5. Start looking for potential candidates.

You can look for EAs at...

• Online job marketplaces

• Outsourcing agencies

• HireHarbour!

6. Interview your applicants.

• Prepare the list of your interview questions in advance.

• Your interview questions should account for the key qualities you identified.

• Consider a practical test or task that can evaluate the skills relevant to the job.

• Plan for multiple interview sessions and rounds with your candidates.

7. Plan for compensation and benefits.

• Research current market rates for EA roles in your area and industry.

• Consider the geographical location of your applicant as well.

• Decide on a competitive salary range.

• Decide if you’re offering benefits.

8. Outline the onboarding and training process.

• Develop an onboarding plan to integrate your new hire into your team.

• Identify the initial training required for your EA to get started.

• Plan regular check-ins during the first few months.

9. Take care of any legal and contractual considerations.

• Prepare a detailed employment contract that covers job responsibilities, compensation, confidentiality agreements, and termination clauses.

• Ensure compliance with employment laws and regulations.

10. Account for long-term development.

• Plan for providing feedback and support.

• Consider your EA’s career path and development opportunities.

• Plan for regular performance reviews and discussions about career progression.

By going through the checklist we’ve shared, we are confident that you’ll be able to find the executive assistant that meets your needs and preferences.

Or better yet, ditch the checklist entirely and work with us instead.

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