As organizations grow, so do their people challenges. What started as a small team that could “figure things out as we go” now needs consistent hiring processes, clear policies, and better ways to manage and support employees. HR issues can start to take more time, and they’re landing on the owner’s or president’s desk (maybe that’s you, reader).
Over time, those HR tasks don’t just take up hours, they can increase compliance risk and make it harder to focus on growth and strategy.
That’s usually when leaders start looking for someone who can take HR off their plate, and possibly where Fractional HR comes in.
What Fractional HR Really Means
Fractional HR is a flexible way to get experienced HR support without (or before) hiring a dedicated HR employee. Instead of bringing on a permanent HR Manager or Director, you partner with a fractional HR professional who works with your organization a few days per week, either on-site or remotely.
Fractional HR professionals are experienced advisors and consultants, often former HR Directors or Managers, who bring the same level of expertise as a full-time hire, just scaled to your needs.
Fractional HR engagements typically start with at least a three-month partnership, giving your fractional HR professional time to learn your organization, assess what’s working, and start implementing fixes. Early on, a fractional HR professional can focus on reviewing policies and practices, identifying compliance gaps, and helping managers address the most pressing people issues. From there, the engagement can grow or scale back based on your needs.
Unlike traditional consulting or outsourcing arrangements, fractional HR professionals become part of your team. They can attend meetings, get to know your managers, and handle both strategy and day-to-day HR work, including:
- Updating or creating policies, handbooks, and job descriptions
- Supporting recruiting, onboarding, and performance management
- Acting as a point-of-contact for employees and managers, and helping resolve employee relations issues
- Keeping your organization compliant as it grows
- Building structure and systems that set you up for future success
How Fractional HR Compares to Other HR Solutions
When organizations reach the point of needing HR support, there are a few main approaches.
| Option | What It Is | When It Works Best | Common Limitations |
|---|---|---|---|
| Full-Time HR Hire | A dedicated in-house HR generalist or leader who manages all HR functions. | When you have consistent HR work and the budget for a full-time role. | Recruiting and training take time; can be costly if HR workload fluctuates. Some organizations don’t know what they’re looking for in a full-time hire. |
| Outsourced HR / PEO | A third-party provider that handles HR administration like payroll, benefits, and compliance through a co-employment model. Under this structure, the PEO becomes the employer of record for tax and benefits purposes, while you still manage your employees day to day. | When your main goal is to simplify payroll, benefits, and compliance by handing them off to an outside provider. | Less personal and connected to your culture; limited flexibility; you may have less direct control over certain HR functions. |
| Fractional HR | A part-time HR professional who works directly with your team and adapts to your needs. | When you need both strategic and hands-on HR support without the cost of a full-time position. | Works best when someone inside the company helps set priorities and keeps communication open with the fractional HR professional. |
When Fractional HR Makes the Most Sense
Fractional HR can be a great fit when your organization is growing or changing. You might recognize your situation in a few of these examples:
- Leaders are handling HR directly. Employee questions, conflicts, and documentation are taking too much of your time.
- Policies haven’t kept up. You’ve grown quickly, and what used to work, like informal PTO or informal hiring, needs more structure.
- Managers need more guidance. Supervisors are handling performance or behavior issues inconsistently or without documentation.
- Recruiting and retention are inconsistent. Roles aren’t clearly defined, and top candidates are asking questions you can’t easily answer.
- Compliance is becoming complicated. You’re discovering new requirements as your headcount grows, like FMLA, ACA, or COBRA.
What to Look for in a Fractional HR Partner
If you’re exploring fractional HR, choosing the right partner matters. You’ll want someone who can quickly understand your organization, adapt to your culture, and make an immediate impact.
Here’s what to look for:
- Experience and credentials: Look for professionals with several years (or more) of hands-on HR experience and certifications like SHRM-SCP or SPHR.
- Industry familiarity: Someone who already understands your industry’s language, schedules, and compliance pressures will be effective faster and avoid trial and error.
- Strategic and tactical balance: The best fractional HR leaders can plan strategically and roll up their sleeves to get things done.
- Access to additional expertise: A fractional HR partner connected to a larger team (like ERC’s) means you’ll also have access to specialists in compensation, compliance, training, and engagement when you need them.
What Fractional HR Looks Like in Practice
Every fractional HR engagement looks a little different, but it typically includes both hands-on work and guidance for leaders and managers.
A fractional HR professional might:
- Serve as your organization’s HR point of contact for employees and managers
- Be available by phone or email between scheduled days and join leadership or team meetings to stay connected
- Review and update policies or create new ones that reflect your culture and compliance needs
- Support recruiting, onboarding, and performance management
- Help leadership think through compensation, engagement, and retention strategies
- Prepare your organization for its next phase, whether that means continued fractional support or hiring a permanent HR team member
Because Fractional HR work is flexible, hours can increase or decrease as your needs change. Some organizations start with several days per week and scale down once HR systems are in place. Others start small and expand over time.
How Fractional HR Engagements Typically End
Fractional HR isn’t meant to be permanent, it’s meant to help your organization get to the next stage.
Most engagements end in one of two ways:
- Transitioning to a permanent HR hire: Once HR operations are stable and the workload grows, ERC often helps clients define the role, source qualified candidates, and onboard the new hire successfully.
- Completing the project and strengthening your HR function: Some organizations wrap up a fractional engagement after achieving specific goals like updated policies and clear systems that keep HR running smoothly.
Many of our Fractional HR clients stay connected with ERC for occasional check-ins or project-based work to keep their HR practices current.
Next Steps: Finding the Right Fit for Your Organization
The right HR model depends on where your organization is today and where it’s headed. What matters most is having the right expertise at the right time so HR supports your people and your growth, not just your paperwork.
If you think fractional HR might be the right next step, explore ERC’s Fractional HR services to learn more about how our professionals integrate with growing organizations.
