What is Fractional HR?

As the business world evolves, fractional HR services have become an increasingly popular solution for small to mid-sized companies. But what exactly is fractional HR, and how can it help your business thrive?

Fractional HR allows companies to access HR expertise on a flexible basis, rather than hiring a full-time HR employee.

This model allows you, as a business owner, to access top-tier HR support without full-time commitment, or full-time pay. With as-needed support, fractional HR is an incredibly scalable solution.

What does Fractional HR do?

Understanding the range of services offered through fractional HR can help you determine if it’s the right fit for your business. These services range from strategic planning and recruitment to compliance and more.

Strategic Planning

Strategic planning is aligning human resource practices with the overall goals of your business. Planning includes workforce and talent management, and developing the organizational structure to ensure your HR is enhancing your company’s objectives.

Through strategic planning, you streamline not only talent acquisition but also boost employee engagement. Effective alignment turns HR into a proactive part of your business.

Recruitment & Onboarding

Forbes says “Recruitment takes both time and energy”, and fractional HR support allows you to save that time and energy to focus on your business. The scalable nature of fractional support means you can hire 4 people one month and 0 the next two months without worrying about cost.

Finding the right talent is just the first step. Helping them feel comfortable and confident is key to ensuring they perform at their best. A solid onboarding process is critical for setting employees up for success.

Onboarding begins the moment a job offer is extended and continues until the employee is comfortable in their role. Fractional HR can implement onboarding into your overall HR strategy for optimal business growth.

Compliance

Making sure you are compliant with labor laws, regulations, and industry standards minimizes legal risks and helps avoid costly penalties. But compliance is about more than just laws and regulations, it fosters a fair and safe workplace while helping streamline business operations. 

Without proper compliance, you risk costly fines and losing employee trust. With fractional HR support, you can focus on growing your business without worrying about fines, penalties, and other costly compliance concerns.

Employee Management 

Managing healthy relationships with your employees can be tricky, and getting it wrong can be expensive. Fractional HR support provides you with the expertise and tools to have honest conversations which can strengthen relationships and boost productivity. By staying proactive, fractional HR helps address issues early ensuring a strong, cohesive team.

Fractional HR can handle many administrative issues. The best way to know if your current problems can be solved through fractional HR is to schedule a consultation. Claim your free consultation here to learn more

Why hire Fractional HR?

Now that you have a deeper understanding of what fractional HR can do for your business, let’s talk about why you should hire a fractional HR. 

Experience

The key benefit of fractional HR is access to top-tier HR expertise. Hiring a full-time HR professional takes time and their experience might not match the specific challenges you’re facing. Fractional HR offers a diverse range of experience to address any challenge. 

Cost-effective

Fractional HR also stands out for its cost-effective approach. HR problems aren’t always present, and the flexible nature of fractional HR is more cost-effective than paying someone constantly to fix issues occasionally.

Time efficiency 

Fractional HR is highly time-efficient, the access to top-tier expertise means that you don’t need to learn how to run payroll or recruit top talent and instead can focus on running your business. When you need access to more help, your HR expert is available to support you on your schedule.

Fractional HR FAQs

How much does fractional HR cost?

Fractional HR flexes to meet the demands of your organization and pricing should adjust with it. Factors such as the length of the project or position, scope of deliverables, industry demands, and location can impact pricing.

Some companies, like JoltHR, offer a subscription model to save on long-term costs. Additionally, you don't have to pay for benefits, overhead, or bonuses, and you'll save money on hiring and onboarding with this model.

If you don't utilize a subscription model, pricing typically varies from $250-300 an hour.

What qualifications do fractional HR consultants have?

At JoltHR our HR professionals have years of experience in Director level or higher positions managing multiple HR functions. Certifications including SHRM, PHR, Mediation, Employment Law, Payroll, and more.

They also possess strong consulting, communications, and project management skills.

What are the pros and cons of fractional HR?

Pros:

Cost - Fractional HR is a more budget-friendly model for almost every small to mid-sized business.

Experience - Fractional HR gives you access to years of HR experience to fit any problem you may be facing.

Time - With more time to focus on your business and an HR professional to figure out the administrative side your business has room to grow.

Cons:

If you need a full-time HR professional over a long period, fractional HR can be more expensive.