The rapid pace of today’s business environment reveals that companies often encounter various skill gaps impeding growth and progress.
A survey conducted by McKinsey & Company found that 87% of organizations believe they are experiencing skill gaps or expect them within a few years. These skill gaps can lead to decreased productivity, lower employee morale, and ultimately hinder a company’s growth and progress. Additionally, a survey by Deloitte found that 90% of executives believe that the skills gap is a critical challenge for their organization’s success.
Traditional full-time hiring solutions may not always be the most feasible option for addressing these skill gaps. Fractional hiring is an alternative solution that can provide businesses with access to specialized skills and expertise in a part-time or project-based capacity.
In this blog post, we will explore fractional hiring, and how it can bridge the skill gaps for businesses and startups.
What is Fractional Hiring?
Fractional hiring involves bringing in part-time or contract workers to provide senior leadership and specialized skills and services. Fractional workers can provide executive leadership in areas such as finance, marketing, operations, technology, and more.
Fractional hiring is increasingly becoming the go-to solution adopted by organizations that are scaling up and are seeking to bring in strategic leadership that can drive the business forward at a fraction of the cost associated with employing full-time personnel.
Fractional hiring provides organizations the opportunity to strategically hire individuals who possess the knowledge, skills, and abilities required to support the organization’s unique objectives and goals, as well as solve specific problems impacting the business. In essence, fractional hiring allows organizations to access the specialized expertise of senior professionals without the obligations that come with having them on the payroll.
By precisely defining the scope of responsibilities, obligations, and expectations for each fractional hire, organizations are able to maximize long-term value from the services provided.
Fractional Hiring Addresses Skills Gap
Fractional executives play a pivotal role in addressing critical skills gaps across various functional areas. These highly experienced professionals bring a wealth of industry knowledge, specialized skills, and strategic insights.
According to a recent article by Deloitte, skill-based hiring is becoming an increasingly important strategy for organizations looking to address skill shortages in their workforce. By focusing on hard and soft skills needed for a particular role, organizations can better match candidates to job requirements and ensure that they have the necessary skills to perform the job effectively.
Skills Gap in Marketing
Businesses need to keep up with emerging trends, technologies, and consumer behaviors. However, marketing skills gaps can arise when organizations lack high level marketing guidance and expertise.
A Fractional Chief Marketing Officer (CMO) is a strategic leader who can help your business grow by providing expert guidance on marketing strategies. They can work with your leadership team to develop a marketing roadmap that aligns with the business goals and objectives. Fractional CMOs have extensive experience and knowledge across industries and can provide insights that you need to stay ahead of the competition. Hire a Fractional CMO and leverage strategic insights to achieve sustainable growth through effective high-level marketing.
Skills Gap in Technology
A Fractional Chief Technology Officer (CTO) is a strategic leader who can provide you with expert guidance on technology strategies. They will work with you and your leadership team to develop a technology roadmap that aligns with the business goals and objectives. Fractional CTOs are gaining popularity across various sectors due to their extensive experience and knowledge. These fractional executives can also provide insights on the latest trends and technologies that you need on your journey to digital transformation. Hire a Fractional CTO today.
Skills Gap in Legal
Legal matters play a critical role in the success and compliance of businesses. However, legal complexities and evolving regulations can create skills gaps, especially for high-growth organizations without dedicated legal departments.
A Fractional Legal Counsel is a strategic leader who can help your business grow by providing expert guidance on legal matters. These fractional workers will work with your team to ensure legal compliance and mitigate risks. Hire a Fractional Legal Counsel and ensure your company is on top of the latest legal regulations that can impact the business.
Skills Gap in Operations
Effective operational management is essential for businesses to run smoothly and efficiently. However, skills gaps in operations can lead to inefficiencies, bottlenecks, and suboptimal processes.
A fractional operations executive or fractional chief operations officer (COO) is an experienced strategic leader who can help the business grow by providing expert guidance on operations. They will work with the company’s leadership team to optimize operations and drive efficiency. If you want to position your business for operational excellence, hire a Fractional COO today.
Benefits of Hiring Fractional Executives
According to a report by Accenture, over 40% of companies globally are working with a flexible workforce. Fractional hiring offers several benefits for businesses and startups including:
- Cost-effective: Fractional professionals can save businesses money. Employers do not have to pay benefits such as health insurance, paid time off, and retirement plans for fractional works.
- Domain Expertise: By bringing in highly-skilled employees on a part-time or project basis, businesses gain access to domain-specific knowledge on demand, allowing them to scale and grow.
- Access to Top Talent: Fractional hiring provides businesses with access to a broader pool of talent, including specialists with specific expertise. Moreover, fractional hiring can allow businesses to leverage commitment and productivity of a full-time executive at a fraction of the cost.
- Flexibility: Since fractional workers are often specialists in their field, businesses can benefit from their expertise and services without committing to a long-term or full-time employee. Additionally, fractional hiring can help businesses quickly adapt to the changing needs of the organization.
- External Perspectives: Fractional hires bring fresh insights and perspectives to the table, as they often have experience working with various organizations across different industries. These external viewpoints can challenge the status quo and contribute to the overall growth of the business.
- Reduced Hiring Risks: When hiring full-time employees, businesses face risks associated with onboarding, training programs, skills development, or the lack thereof, and cultural fit. Fractional hiring minimizes these risks by providing access to senior professionals who are experienced and can effectively grow the business in short term or long term.
Recommendations for Effective Fractional Hiring
To maximize the benefits of fractional hiring while minimizing the drawbacks, businesses should consider the following recommendations:
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Perform Skills Gap Analysis
The first step is to identify the precise skills or expertise that are currently lacking within your team, critically evaluate these areas, and determine how they affect your ability to achieve your business objectives. This step will enable you to prioritize these areas when seeking out fractional employees.
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Define Open Roles
Once you’ve identified the skills required, it’s important to define specific roles and responsibilities within your team. Try to assess the workload and resources required to fill any knowledge gaps. This will help ensure that you’re making the most of your fractional hires and utilizing their skills to their fullest potential. The length of a fractional employee’s tenure should also be discussed as part of the recruitment process since this will determine how much value they bring to your organization.
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Plan Your Talent Search
Once the fractionals roles and responsibilities are identified, the fractional talent can then be recruited or contracted to fulfill those specific tasks. You can leverage your existing network of contacts to source talent quickly and efficiently. Additionally, consider using online job boards, recruitment websites, or specialized fractional hiring platforms to search for the right candidates with the necessary skill set.
Conclusion
The mismatch between the skills that employers need and the skills possessed by the available workforce is a real issue, and businesses need to consider what steps they can take to bridge this gap.
At Hire A Fractional, we match organizations with the right fractional talent on a short-term basis without long-term commitments, allowing them to access the skills they need while reducing their overall costs. We provide businesses with FREE access to top talent enabling them to scale up or down quickly depending on the changing needs of the business.
If you want to learn more about how you could leverage the benefits of fractional hiring and achieve your goals faster and more efficiently visit www.hireafractional.com. Joining is free for companies!