Hiring at the Right Level: Fractional or Full Time?

Finding the right leadership talent isn't just about filling a title; it's about matching skills and responsibilities to an enterprise's needs. The importance of strategic hiring decisions cannot be minimized. However, putting the right person in the correct position is critical, and sometimes, that may mean something other than a permanent, direct hire.

I recently spoke with two trusted partners—one in the recruitment industry and the other in legal services—Josh McAfee from Humans Doing and Joe English with Taylor English—to better understand how CEOs think about common senior-level hiring challenges.

Both Josh and Joe have decades of experience in their respective fields. Josh has helped develop a market for “recruiting as a service,” a proprietary model for senior executive recruitment. Joe has built a thriving legal practice serving business leaders and is well-versed in strategies for providing fractional general counsel (GC) hires to growing companies.

Key Takeaways

We agreed that CEOs – especially of early-stage companies – will benefit from thinking expansively to solve business challenges. And it’s as much about the process as it is about getting the right people in the right seats. It’s best to begin with conversations among your leadership team and strategic partners, identifying the company’s hiring needs beyond simply filling a title. This early collaboration is the key to avoiding common misalignments that can lead to unhappy employees and unmet business needs.

Identifying the Real Need

What is the right talent level for the position you need to fill? Many companies misinterpret their needs by trying to put a label on a critical hire. What may seem like a requirement for a Chief Marketing Officer (CMO) is a need for a seasoned director or specialist focusing on program execution. For Josh and Humans Doing, it’s about identifying the right level of talent first vs. a title, then ensuring that your search is conducted with that individual in mind.

The Fractional Solution

Do you need a full-time, permanent hire? Many mid-sized companies only require full-time executives if they are experiencing rapid growth or have specific strategic needs. But a company that just received significant private equity funding probably doesn’t need a full-time hire. Joe and his firm see this as a “rental” hire – once the company’s revenue engine gets going, then the company may transition to a full-time executive hire.

Bringing in fractional expertise allows companies to access high-level talent without the hefty price tag of a full-time executive. Fractional hiring provides a flexible and cost-effective solution for companies navigating growth phases. For many mid-sized organizations, engaging fractional executives for roles like CMO, CSO or GC allows them to access top-tier talent without committing to full-time salaries and benefits. According to Joe, this approach optimizes budget allocation and will enable companies to leverage expertise precisely where and when it's needed most, whether for strategic planning, market positioning, or operational efficiency.

Tailoring Roles for Growth

Fractional roles can also evolve into full-time positions based on organizational needs and growth plans. Companies can test and refine roles by initially engaging fractional leaders before committing long-term to filling positions. This approach mitigates risk and ensures hires are well-suited to the business's evolving needs.?

One key advantage of starting with fractional leadership is the ability to tailor these positions as the company evolves. By initially hiring on a fractional basis, organizations can assess the fit of a role within their structure and culture before making a permanent commitment. Fractional hiring can help ensure that leadership roles are aligned with the company's growth trajectory and strategic goals, fostering long-term success, and minimizing the risks associated with hiring mismatches.

Mentoring and Strategic Guidance

What role can fractional executives play in mentoring your team? Mentorship within fractional roles helps you groom future leaders and align them with organizational goals. Fractional executives can play a dual role, fulfilling your immediate needs and providing invaluable guidance and mentorship to internal talent, including onboarding future successors to their roles. This approach strengthens the leadership pipeline and enhances organizational resilience by preparing leaders to navigate future growth and change.

To put it another way, as Josh shared during our discussion, the beauty of hiring a fractional executive is that they can train, teach, and show a full-time hire how to fly the plane, then parachute out and on to the next mission. This mentoring/training model provides great “bonus” value to the fractional hiring process.

What if Fractional Isn’t the Answer?

Sometimes, a company is very clear about what it needs from an executive hire. This may result from internal auditing or a need for realignment with a completely new management team. In these cases, when a company is clearly on the cusp of needing a full-time hire, there are recruiting firms like Humans Doing that can help. According to Josh, it’s about doing what’s right for an individual business, and this realization comes from mutual trust. It's not just about making a hire or recruiting a person to do a job; it’s about being a true partner to clients and listening to their needs.?

Building Trust and Long-Term Success

Establishing trust and fostering collaboration between fractional consultancy firms, recruiting firms, and clients is crucial for sustainable success. Rather than viewing fractional executives as external contractors, organizations can benefit from treating them as strategic partners invested in achieving shared objectives who may end up becoming full-time leaders.

Chief Outsiders takes a collaborative approach to strategy, talking with clients to uncover trends and tactics that help businesses succeed. By taking a collaborative approach to assessing your executive hiring needs, you can ensure that your consultant relationships are tailored to meet your unique organizational needs, driving innovation, growth, and competitive advantage in dynamic market environments. It all starts with having the right conversation about making the right hire.

by Paul Sparrow , Managing Partner, South

Originally published on the Chief Outsiders blog