If you’re starting a business or making some big changes in an established business, you may want to consider hiring some fractional employees. If you’re going to bring in these employees, it’s good to have a fractional hiring plan.
But first, let’s look at what fractional hiring is and what can it do for your business.
What are fractional employees?
These are people who have expertise in one or more areas. Unlike independent contractors, they’re typically not hired for a specific project but to fill technical, niche or specific types of management skills gaps in your team for a designated or indefinite period. Generally, they work under a retainer agreement.
If you’re considering fractional hiring, determine what skills you need, for how long, and how much money you can budget for these employees. Then you can start working on drafting the appropriate contracts. Fractional employee agreements are typically for a minimum of three months. Some people with in-demand skills may require a minimum six-month term. You can include a cancellation policy (typically of 30 to 60 days).
Why can fractional hiring be beneficial to your business?
Fractional hiring can be good for businesses because it saves recruiting costs as well as the money you’d have to pay in benefits for a regular employee. These arrangements can also be beneficial for people with creative or technical skills who don’t want to be tied to one employer as well as seasoned professionals and former executives who want the freedom to work when they choose.
Fractional hiring is becoming increasingly popular as businesses and employees are moving away from traditional, highly structured work practices. However, it’s crucial for business owners and their fractional employees to clear mutual expectations.
That’s why the contracts you have can make or break a good relationship. As with any contract, it’s wise to have experienced legal guidance as you draw up your agreements.