What is a Fractional executive position?

Companies need C-Suite leaders, but they don't always need those leaders full-time.

Enter: Fractional executive work.

One of the fastest-growing segments of the job market is Fractional C-Suite work, or said another way, part-time C-Suite executives. It’s a win/win for leaders who are looking for strategic, part-time work, and for companies who need strategic experts, but can't afford to hire full-time ones.

Deloitte estimates that right now, 25% of businesses use Fractional leaders, and that number is expected to go to 35% by the end of next year. It's a great solution for companies that are in growth mode, exploring new markets, or just too small to need a full-time, seasoned executive for a specific function.

What is a Fractional leader?

• A C-Suite level person who works part-time as an external consultant for a specific company (ex: a Fractional CFO for a small, local software company).
• They perform the same roles as if they were full-time employees (but just on a part-time schedule and therefore a more limited scope of work).
• They often participate in internal and client meetings as if they're a full-fledged member of the team.
• They typically perform strategic work while a more junior in-house person handles the associated tactical tasks and implementation.

How does it work?

• A Fractional leader usually works a set number of hours a week (retainer).
• The scope of work and schedule is agreed upon between the Fractional leader and the employer.
• The executive almost always finds the Fractional gig through their own network, but there are a few platforms such as Fractional Executive Connection, Shiny, Wizly, and GigX that connect Fractional leaders to client companies.
• The gig continues typically in perpetuity, similar to an in-house hire, but unlike a project-based consultant who might come in to execute a transformation and then move on to a new company.
• It's a perfect setup for someone looking to semi-retire, pivot after a company sale, downshift, or explore working for themselves but in a way that doesn't require constant selling.

How easy is it to get Fractional work?

• Easy! It's more likely in small to medium-sized businesses than in larger corporate settings.
• Usually, you start with one fractional client (you can find one client!) and then take on as many as you like or as time permits.
• Often, people grow to hold 1-3 Fractional C-Suite roles at the same time.
• Contrary to popular belief, you don't need an LLC, a business name, a website or anything fancy to start a Fractional practice. Just a company who has a need that you can fill, and they can pay you as a 1099 consultant.

I've been doing more and more work with executives in transition who try the Fractional life and really come to embrace it - they love the freedom they have to work with clients on really fun and strategic work and the schedule flexibility it provides.