What is Fractional HR?
For mid-size and larger organizations, using outside talent can help get projects and initiatives off the ground. A basic but not exhaustive list of ways a Fractional HR consultant can help would include:
- employee and labor relations
- investigations
- succession planning
- organizational structure
- leadership development
- exit and stay interviews
- projects like updates to job descriptions or employee handbooks.
For smaller companies or start-ups, it could be the total outsourcing of the HR function to establish some structure and formality as the organization grows. This would include a comprehensive list of functions one would traditionally associate with employee relations support activities.
The Business Case for Fractional HR
The interesting aspect of adopting a Fractional HR approach is that it can bring the HR department into alignment with the other parts of the business that are responsible for managing costs and profitability. By introducing variable costing into the equation of workforce utilization, HR begins to think and act like other parts of the business without sacrificing the quality or quantity of their contributions.
In fact, they may benefit in ways that are not immediately recognizable. Outside experts can often see things with the objectivity required to move the organization toward its intended goals. For example, an outside consultant working with a client to improve employee engagement might, through the process of gathering information in focus groups, uncover tensions within the group dynamics that would undermine policy improvements or cultural changes that might be implemented.
In this case it would be beneficial to work with a consultant who could identify the issue and has the capability to provide a solution that addresses the root cause.
Key Considerations When Choosing a Fractional HR Partner
If your organization could benefit from Fractional HR support, there are three key factors to consider:
- Choose a partner with a full suite of services. A consultant who is trained to detect these behavioral dynamics and address them upfront through assessments and just-in-time learning would be highly valuable and save time and money in the long run. Having multiple competencies within the partner company provides a level of comfort that regardless of who your main point of contact is, they will have an internal network of subject-matter experts they can rely on to ensure you get the support you need without having to utilize multiple providers.
- Look for variation in the types of services that the company provides. For example, if you bring in consultants to work on organizational structure and succession planning and they uncover gaps in the leadership competencies of key members, there is value added when the same consultants have the expertise and experience to do executive coaching, behavioral assessments, and training for further development.
- Lastly, prepare yourself and the organization to see Fractional HR as a partnership and not a threat. The utilization of outside providers is not only a way to remove stress, but it also shows an understanding and appreciation for sound business practices.
At PRADCO, we offer Fractional HR services as well as behavioral assessments, organizational development, and executive coaching services to help you get the most from your team. We are happy to answer your questions. You can contact PRADCO at (https://pradco.com/contact).
