Gig workers have existed since musicians in the early 1900s hustled for stage time in jazz clubs. However, it wasn’t until technology platforms unleashed sharing economy businesses like Uber and TaskRabbit that the term—and the employment model it describes—went mainstream. Now, the concept of temporary, flexible work has permeated our culture. We even have a complete ‘gig economy.’
More recently, a variation on the gig worker theme has entered the business lexicon: the “fractional executive.” These high-level professionals, often with C-suite titles on their resumes, agree to provide their expertise to companies part-time. A fractional CMO, for example, might commit to work two days a week with a small, growing firm that can’t afford a full-time marketing executive but would benefit from their savvy and wise counsel. Like gig work, this model offers advantages to each party. Fractional executives experience flexibility, improved work-life balance, and the opportunity to maintain a sense of purpose without the constraints of full-time employment.
For employers, it provides access to top-tier talent at a manageable cost, offers a scalable solution that can adapt to changing needs, and should foster greater loyalty and continuity than possible through a simple outsourcing arrangement. Some fractional executives have gone further in espousing their value, arguing their ‘at an arm’s length’ status makes them more helpful to a company. One such executive said the fractional designation offered them greater permission to speak freely when something controversial needed to be said.
Despite such speculation, shouldn’t someone vested in the company’s fate, who has earned the trust of those they work with and whose full-time presence demonstrates a deeper connection to the company’s fate, be an even more influential voice? Imagine a ship captain who only appears on deck on Mondays and Thursdays. Would the crew trust them to navigate through treacherous seas? The answer is likely no.
While the upsides to the fractional executive might initially sound appealing, close examination reveals this staffing solution fundamentally misunderstands executive leadership. Can someone truly lead operations, finance, or marketing while making a fraction of a commitment? Leadership requires more than just strategic expertise or technical skills; it demands understanding the organizational culture, building strong relationships, and a presence that fosters trust and accountability. Can trust be built and maintained with a limited presence and unclear commitment? Can a fractional leader motivate and inspire a team when they are not consistently present? How can an executive be seen as ‘all in’ for the mission when they are not?
If A Fraction Is All You Think You Need Or Can Afford
Despite these concerns, the advertised upsides of fractional leadership are likely to continue to prove irresistible to many companies and flexibility-seeking executive talent. In advance of that inevitability, tips for the employer and the fractional executive are offered below.
The Company’s Role
Intentionality in creating a fractional executive role is necessary because a dangerous default position of ‘it will work’ has been uncritically adopted. A more honest prediction is, ‘If we are not careful, this will fail.’ So, what is involved in being careful? First, clear communication throughout the organization regarding the scope of work, agreement on the fractional executive’s key performance indicators, and reporting structures – both to and for the executive – must be established upfront. Second, deliberate, ongoing efforts must be made to integrate the fractional executive into the company culture and to provide them with opportunities to demonstrate just how bought-in they have become. Third, the fractional executive should be empowered with appropriate authority and resources and held accountable. If the position fails, it should not be because they were never given a chance. By taking steps in these key areas, organizations can mitigate the inherent limitations of the fractional model.
The Fractional Executive’s Role
The fractional executive has two primary stakeholders to satisfy: employees in their chain of command and their leadership team peers. For a fractional executive to be accepted and respected by employees, they must prioritize building trust and demonstrating value. This begins with consistent communication about their role, responsibilities, and availability. Since the most significant challenge to overcome is that a part-time assignment leads employees to assume the executive is offering only a part-time level of commitment, it is vital to be strategic about how that limited time is spent. When at work, these leaders must go beyond when it comes to actively listening to employee concerns, acknowledging their perspectives, and providing regular feedback and support. Other best practices include being visible and accessible, even virtually, through regular check-ins, team meetings, and open communication channels. Avoid creating the impression of being an “outsider” by actively participating in team activities and fostering a sense of shared purpose. Only by prioritizing communication, maintaining visibility, and demonstrating value can a fractional executive build strong relationships with employees and increase the odds of becoming a respected and valued team member.
The Fractional Leader Is Risky (For) Business
The risky assumption underlying the idea of a fractional executive stems from a misunderstanding of the core elements of leadership. While a fractional executive can undoubtedly make valuable contributions to an organization, the staffing model minimizes the crucial elements of a dependable presence and deep relationship building. Leadership requires more than just serving as a fountain of domain knowledge. It demands fostering trust, inspiring teams, navigating complex interpersonal dynamics, and embodying the organization’s values. These aspects of leadership are difficult, if not impossible, to cultivate part-time. The hope that leadership can be effectively “fractionalized” ignores the ongoing, dynamic nature of leading people.
By addressing these specific challenges and implementing these strategies, organizations can maximize the effectiveness of fractional executives not just with the workforce but, perhaps even more importantly, within the executive team itself. This ensures that the fractional executive is seen as a valuable partner and contributor to the company’s strategic direction.
That said, it would be wise for those considering this model to include an honest appraisal of the value being left on the table by only creating room for a fraction of a leader.