If you’re reading this, there’s a good chance something’s shifted.
Maybe someone in a key HR role is going on leave. Maybe they’ve already left. Maybe you’ve been growing quickly and are starting to realize that HR can’t be an afterthought anymore.
We work with a lot of leaders who find themselves in these same situations. Something changed, and now it’s time to figure out what’s next.
We’ll walk you through three options to address these shifts (Internal HR, Outsourced HR, and Fractional HR) so you can decide what fits best for your organization right now.
Options at a Glance
Let’s start with a side-by-side comparison:
| Model | Best For | Cost | Speed to Implement | Cultural Fit | Strategic Value | Admin Support |
|---|---|---|---|---|---|---|
| Internal HR | Long-term, stable teams with clear structure | $$$ | Slow | High | Medium–High | High |
| Outsourced HR | Admin or compliance needs with limited strategy | $–$$ | Fast | Low | Low–Medium | High |
| Fractional HR | Transitional needs or HR re-evaluation | $$ | Medium–Fast | Medium–High | High | High |
Note: These are generalizations based on how these models typically function. The effectiveness of each approach depends on your organization’s goals, culture, and structure.
Not sure what kind of HR support you need? Here’s a quick way to think about it:
- Tactical support includes things like updating policies, onboarding, or managing day-to-day employee questions.
- Strategic support helps you think ahead—planning your HR function, advising leaders, improving culture, and aligning people with your growth.
The best choice depends on what kind of support you need, how quickly you need it, and whether you’re solving a short-term problem or building toward a long-term solution.
Internal HR: When Hiring Makes Sense
Best for: Organizations with 50-100+ employees, a stable team, and a clear long-term vision for HR.
Benefits of this approach:
- Your HR leader is fully integrated into your team and culture.
- You gain consistency and continuity over time.
- They’re present and available to employees every day.
Things to keep in mind:
- It’s a big investment—between salary, benefits, and onboarding, hiring takes time and money.
- If you haven’t clarified what your HR function should do, you might end up hiring the wrong person or overloading a single individual with too much responsibility.
- Many internal HR professionals are generalists, so they may not have deep expertise in areas like compliance, compensation, or organizational development.
Internal HR works best when you’ve already established what your HR needs are and you’re ready to commit to building it out in-house.
Outsourced HR: When You Need Admin Support Without the Overhead
Best for: Admin-heavy needs like payroll and benefits administration, timekeeping and attendance, and filing and recordkeeping, especially for smaller companies with no internal HR support.
Benefits of this approach:
- It can be cost-effective and often bundled with your payroll or benefits platform.
- You can get up and running quickly.
- It takes routine, transactional work off your plate.
Things to keep in mind:
- Outsourced HR providers often operate remotely and handle requests through ticketing systems. That works well for simple, repeatable tasks, but it’s not the same as having someone who understands your team or culture.
- In our experience, many outsourced providers are designed to handle volume efficiently, meaning their teams often focus on general administrative support rather than strategic HR advising.
✅ Outsourced HR is great when your needs are administrative, but if you’re looking for someone to guide HR strategy or step into employee conversations, it may not be the right fit.
Fractional HR: When You Need Expert Help That Flexes With You
What is Fractional HR?
Fractional HR means bringing in a seasoned HR professional on a part-time or project basis to focus on both strategy and day-to-day HR.
Best for:
- Filling the gap during an HR leader’s leave or departure
- Fast-growing companies that haven’t formalized HR yet
- Organizations with HR teams that need support, or need a reset
Benefits of this approach:
- You get the experience of a senior HR leader without hiring one full-time.
- You get someone who can jump in to help with employee issues and step back to help you think through the big picture.
- It’s flexible and quick to implement. You can scale up or down as your needs evolve.
- A good fractional partner can assess your current HR structure, identify what’s missing, and help you figure out what your HR function should look like going forward.
Things to keep in mind:
- Fractional HR can cover urgent needs, but its real value comes from helping you build the right HR foundation. If you only use it to plug a gap, you might miss the chance to improve structure, culture, and long-term planning.
✅ Fractional HR is ideal when you want to keep things moving today and build a better foundation for the future.
What Fits Your Situation?
Here’s a quick guide to help match your situation to the right HR model:
| Your Challenge | Best Fit |
|---|---|
| HR person going on leave | Fractional HR |
| Sudden HR departure | Fractional HR now, Internal HR later |
| Growing company, no HR yet | Fractional HR to build structure |
| Need basic HR admin help | Outsourced HR |
| Ready to build full HR infrastructure | Internal HR |
What to Ask Before You Decide
We recommend asking these questions before making a decision:
- Are we looking for help with the day-to-day, the big picture, or both?
- How fast do we need someone in place?
- Do we want this person to be integrated with our leadership team and culture?
- What’s our long-term plan for HR?
- Are we building something permanent or figuring out what “permanent” should look like?
And maybe most importantly:
- Who do we trust to help us make the right next decision?
There’s No One-Size-Fits-All, But There Is a Right Fit
Whether you’re facing a leave, a leadership gap, or just that growing sense that HR can’t stay on the back burner any longer, we’re here to help.
Let’s talk about what HR model makes sense for where you are and where you’re going.
