Upwards of 30% of the U.S. workforce is self-employed. Add to this list a growing number of fractional executives. This role is typically filled by an executive who is looking for more flexibility. Whether that is to reduce their working hours, have more variation in the work they’re doing, take on additional work, work virtually, work in another country, or have more personal time.
Experience
A fractional executive is a highly skilled and experienced professional with a proven track record of success in their career. They have held senior leadership or C-suite positions in the past, demonstrating their ability to lead and manage complex organizations. Throughout their career, they have worked for five or more companies. Which has given them broad exposure to different industries and business models.
As a fractional executive, they bring their wealth of experience and expertise to multiple companies simultaneously. This enables them to take on various roles and responsibilities, helping organizations to navigate challenges and seize opportunities. By working with different companies, they can gain a unique perspective on industry trends, best practices, and emerging technologies.
Over time, a fractional executive’s work experience can grow exponentially as they take on new challenges and responsibilities in different organizations. This can result in them having dozens of roles under their belt, making them a valuable asset to any company looking for a seasoned and versatile executive.
Compensation
Hiring a fractional executive can be an excellent way for a company to access the expertise of highly experienced executives without having to bear the high cost of hiring them full-time. Fractional executives offer three defined levels of compensation, allowing companies to choose the best fit for their needs. They can be hired on an hourly, daily, or monthly basis, giving companies the flexibility to budget accordingly.
When you hire a fractional executive, their own corporation will invoice you, and they will be responsible for paying applicable taxes. This means that you can reduce the burdened rates for compensation and additional benefits substantially from a payroll perspective. By hiring a fractional executive, you can tap into the expertise of seasoned executives while keeping the costs under control.
Availability
A fractional executive is a professional who offers part-time executive-level services to businesses. This role is flexible, allowing the hiring company and the fractional executive to determine the number of hours, days, and duration of the service required. The fractional executive typically works for a company for 1-3 days a week, but this can be as much as 5 days per week for a set period of time. The support can be virtual, in-person, or a combination of both, depending on the company’s needs. This arrangement enables companies to receive high-level support from experienced executives without having to commit to hiring a full-time executive.
Company
Hiring firms come in different sizes, from small to medium-sized businesses that are in the start-up to emerging stages. It is not unusual for mature companies that require specialized skills or experience may hire fractional executives to bridge the talent gap.
