You’re not alone if HR isn’t always top of mind until something goes wrong. It could be an underperforming team member, an internal transition, or maybe your HR function just doesn’t exist yet.
That’s what fractional HR support is: HR experts that can handle day-to-day needs or establish an HR structure without the need to commit to a permanent hire.
What are some signs that your organization might benefit from it (or even need it)?
- You have an important HR team member (or someone that handles HR) taking a leave of absence (example: maternity leave)
- An important HR team member has left or will be leaving the organization soon
- You’re growing, but don’t have any dedicated resources for HR yet
- Your current HR resources aren’t meeting your needs
Let’s walk through some of these scenarios where fractional HR might be just what your organization needs:
1. Temporary HR Transitions
Temporary absences (especially of your HR leader or critical HR team members)—think maternity leave, medical leave, or sabbaticals—can create gaps that need to be filled.
Examples of Situations:
- Your HR Director announces they’ll be on maternity leave for several months.
- A key HR employee is taking an extended medical leave.
- Your HR Manager requests a sabbatical, creating a short-term vacancy.
Why It Matters:
- Employees may lack a designated person to handle sensitive HR or employee relations issues.
- Non-HR leaders that inherit this temporary workload can become overwhelmed, can be unprepared, and may be unable to manage day-to-day HR responsibilities effectively.
This can be especially tough in organizations without a strong or established HR function. When HR responsibilities have been informal or distributed among other roles, the absence of a single HR point person can leave employees unsure of where to turn for help and can increase pressure on leaders who aren’t trained in HR.
Fractional HR experts can step into these temporary gaps, keeping things running smoothly and supporting your team until your regular HR person returns.
2. You Have No Dedicated HR Function
Many organizations grow to the point where a formal HR function becomes important, but making that first hire can be tough. If you don’t have any HR experts in the organization, it’s nearly impossible to know exactly what you need to hire for.
Examples of Situations:
- Your CFO or COO currently manages HR functions as a small (but growing) part of their role.
- An office manager is overwhelmed juggling HR duties alongside their primary role, especially with a lack of HR training or experience.
- Growing compliance requirements and workforce complexity simply demand more professional HR oversight.
Why It Matters:
- Non-specialists handling HR responsibilities might inadvertently expose your company to compliance risks.
- Employees lacking clear HR communication channels may feel unsupported or confused.
- You’re likely missing opportunities for strategic employee development or retention initiatives.
Fractional HR support not only helps fill this HR role temporarily, but more importantly, a fractional HR consultant evaluates your HR needs, establishes a foundational structure, and defines potential role(s), all before you have to commit to a permanent hire.
3. Your Current HR Resources Aren’t Delivering
Sometimes, existing HR resources are primarily administrative, limiting their capacity to handle strategic issues or higher-level workforce planning. This doesn’t mean current HR personnel aren’t valuable; rather, it highlights the need for additional strategic perspective and support.
Examples of Situations:
- Your HR administrator primarily handles payroll and benefits administration, leaving strategic HR planning unaddressed.
- HR resources manage routine tasks, but struggle with complex employee relations or strategic hiring challenges.
- Your organization faces new compliance demands or employee engagement challenges beyond current capabilities.
- You’ve outgrown the standard services offered by your PEO or payroll/HRIS provider, and need more tailored, strategic HR support.
Why It Matters:
- Without a strategic HR voice, your organization will stagnate when it comes to long-term planning and organizational growth.
- Without the right oversight, compliance or employee relations issues might escalate.
- As the Entrepreneur’s Operating System states, it’s all about having the “right people in the right seats”—if you’re not feeling that, it might be time to explore your options.
- PEOs and HRIS providers can be good for HR admin, but they typically don’t offer higher-touch strategic insights, leaving growing companies without the guidance they need.
4. Your Organization Is Growing—and So Are Your HR Needs
As your company grows, HR needs become increasingly complex. That almost always requires a more sophisticated HR function with generalists or specialists to handle the additional work.
Examples of Situations:
- Significant employee growth outpaces the capacity and expertise of the existing HR function.
- Employee satisfaction, engagement, or retention drops as HR resources become stretched too thin.
Considerations:
- Growth often brings new compliance and regulatory requirements, which, if overlooked, can create costly legal risks.
- Without proper HR support, employee engagement and morale can decline, which causes a domino effect impacting productivity and retention.
Fractional HR experts can help manage growth more strategically, laying the groundwork for a long-term HR function.
Fractional HR as a Flexible Solution
Fractional HR is different from temporary staffing or strategic consulting. It combines tactical HR support with strategic guidance. If these signs resonate with your current experience, fractional HR support could offer the stability and strategic direction your organization needs. Learn more about ERC’s fractional HR support and services.
