When I started working in recruitment in 1996 the word ‘fractional’ wasn’t in my vocabulary.
Back then we used to rely on a Rolodex (remember them?) and an A4 sized black book of contractor names and numbers.
LinkedIn didn’t exist, we had a green screen ‘dumb’ terminal and a very basic CRM system.
Technology has transformed the recruitment sector for me and made my job easier in many ways.
Technology has also driven the growth of fractional roles and, post Covid, we have seen a rise in the demand for fractional people, especially in tech, data and cyber.
In its simplest terms a fractional role is a part-time or project-based position that allows a business to hire experienced people but with the flexibility of not committing to a full-time package.
You now see a lot of fractional chief technology officers (CTOs); chief marketing officers (CMOs); and chief information officers (CIOs).
We specialise in data, cyber and tech and placing fractional CTOs is a big part of what we do.
Fractional roles tend to be the highest paid and less operational – but it’s changing.
Companies see the value in employing somebody two days a week because they get the experience but not the full cost.
It’s a win-win. The employer and fractional worker both get increased flexibility and are more focused on outcomes.
A fractional CTO might cost between £1,000-£1,500 a day, which is still a lot of money but is less than some consultancies would charge.
For companies aiming to deliver digital transformation projects and launch new products, embracing this trend can be particularly advantageous.
I’d break it down into three things: Company compliance; growth strategy; and driving efficiencies.
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Company compliance
One of the foremost concerns for any business is staying compliant with regulations and industry standards. For SMEs and startups, navigating the complex landscape of compliance can be daunting. Employing fractional and freelance IT professionals can mitigate these challenges in several ways:
• Expert knowledge: Fractional workers often bring specialised expertise, ensuring that your company adheres to the latest regulatory requirements without the need for extensive in-house training.
• Flexibility and scalability: Freelancers can be hired on a project-by-project basis, allowing businesses to scale their compliance efforts as needed without committing to long-term contracts.
• Cost savings: By leveraging fractional talent, companies can avoid the overhead costs associated with permanent staff, such as benefits and ongoing training.
Moreover, the ability to tap into a nationwide talent pool means companies can find the right experts regardless of their physical location, ensuring that compliance is maintained efficiently and effectively.
Growth strategy
Growth is a primary objective for any business, and in the tech sector, staying ahead of the curve is crucial. Fractional and freelance workers offer significant advantages in this area:
• Access to top talent: SMEs and startups can access high-calibre professionals who have experience with leading tech companies and cutting-edge projects, without the need for a permanent hire.
• Innovative perspectives: Freelancers often bring fresh ideas and innovative solutions, which can be instrumental in developing new products and services.
• Agility and speed: The ability to quickly onboard and offboard talent allows companies to respond swiftly to market changes and emerging opportunities.
By incorporating fractional workers into their growth strategy, businesses can accelerate their digital transformation initiatives and stay competitive in a dynamic market.Driving Efficiencies
Efficiency is key to maintaining a competitive edge and ensuring sustainable growth. Fractional and freelance workers can help drive efficiencies in several ways:
• Technology utilisation: Embracing technologies like automation, cloud computing, and data science can streamline operations and reduce costs. Freelancers with expertise in these areas can implement and optimise these technologies relatively quickly and effectively.
• Reduced overheads: Utilising fractional or contract professionals reduces the financial burden of maintaining a large permanent workforce, allowing businesses to allocate resources more strategically.
• Project-based focus: Fractional and contract workers can be hired for specific projects, ensuring that each task receives dedicated attention and expertise without the distraction of other ongoing responsibilities.
These efficiencies not only improve operational performance but also enhance the overall agility of the business, enabling faster response times and better resource management.
In conclusion, I believe for SMEs the future of work lies in the strategic use of fractional and freelance IT and tech professionals.
By focusing on compliance, growth strategy, and driving efficiencies, businesses can leverage the flexibility, expertise, and cost benefits that come with this model.
With the added advantage of remote work capabilities, companies can access a broad talent pool and implement innovative technologies to propel their growth and success.
I’m talking to lots of companies right now who see the advantages of fractional or contract professionals who work on an outcome basis. They can be very specific about what they want to achieve and bring in an expert to help them achieve it.
Many of the fractional CTO’s I work with say that they know that they don’t have six months to bed in when it comes to digital transformation.
They enjoy the flexibility and the challenge, they are used to working with multiple companies, and executing multiple strategies at pace.
It’s more interesting, less political and it gives them better job satisfaction and better work life balance.