Why Fractional HR Is on the Rise — and What It Can Do for Your Business ?

By:  Sandra Bushby, CCDP-AP, SHRM-SCP

Scaling a company means navigating growing pains. In large companies, HR change initiatives  often stall when teams are stretched thin. Maybe your onboarding is inconsistent. Maybe HR tasks are eating up leadership time. Maybe you’re building a DEI strategy but lack internal expertise.

That’s where fractional HR steps in!

What is Fractional HR?

Fractional HR means bringing in an experienced HR professional on a full-time or part-time basis. They provide strategic direction, build infrastructure, and support day-to-day HR operations—all without adding a full-time salary to your org chart.

They’re embedded, hands-on partners who operate as part of your team and own the work.

How is this Different than Outsourced HR?

Outsourced HR handles tasks.  Fractional HR solves problems.  While outsourcing focuses on transactional support limited to predefined services, fractional HR steps in as partners combining strategic and tactical guidance with hands-on execution. They don’t just process tasks – they lead initiatives, solve problems, and operate as an extension of your team.

They attend meetings, manage priorities, and drive results from the inside – not from a help desk.

When Does a Company Need Fractional HR?

Here are real-world scenarios where fractional HR fits:

Your HR manager is on leave and you need interim coverage.

You’re launching a DEI strategy but lack specialized experience.

You’re growing fast and need onboarding, policies, processes and protocols—but not a full HR team yet.

Your CHRO is pulled into day-to-day distractions and can't focus on enterprise strategy.

Your HR team is stretched thin, and operations are falling behind.

It's a smart move for small, mid-sized, and large organizations alike. Even global companies turn to fractional pros for targeted implementation—like embedding a DEI leader to execute strategy while internal teams handle communication.

Could You or Your Company, Benefit from Fractional HR?

Ask yourself:

Are employee relations issues, turnover, or engagement concerns growing or going unresolved?

Are onboarding, performance management, or engagement processes inconsistent or non-existent?

Has HR strategy taken a backseat to urgent tasks?

Are you launching a new initiative that your current HR capacity can't support?

Has a key HR team member gone on leave and you need temporary support without long-term overhead?

Do you need to implement processes and protocols but don’t have the bandwidth?

Is your business growing faster than your current HR capability?

If two or more of these apply, fractional HR may not just be a fit—it may be overdue.

What’s the Business Case?

A full-time HR hire could run $150K–$200K+ annually. Add benefits and overhead, and the cost climbs even higher.

A fractional HR leader, by contrast, offers targeted expertise at a fraction of the price. You pay only for what you need—no benefits, no long onboarding ramp-up, and far more flexibility.

And it’s not just about money. A Paychex study found CHROs lose over $3,300 a week in productivity managing HR admin. That’s a business cost you can’t ignore.

A Real Example

A 60-person tech firm had been steadily growing, but their internal HR processes hadn’t kept up.

They engaged a fractional HR Director two to three days a week. She designed a consistent onboarding process. she introduced a scalable performance framework and she stepped in to manage compliance and employee relations. She also worked with the executive team to align HR priorities with their business roadmap. As a result, the CEO was able to focus on business transformation

They stayed lean and gained senior-level capability—without a permanent hire.

Why it’s Worth Considering?

Whether you’re a startup hitting a growth wall or a large company trying to move fast on DEI, fractional HR can deliver high-impact results—strategically and affordably.

It’s not about filling a gap. It’s about unlocking momentum with the right expertise, at the right time, for the right scope.

If you are interested in learning more about ExecuInsight’s Fractional HR Services, contact us at:  execuinsight@gmail.com