Fractional HR, often referred to as fractional human resources, is an innovative model that allows businesses, especially small businesses, to access the expertise of seasoned HR professionals on a part-time or as-needed basis. Unlike the traditional full-time HR department, Fractional HR provides flexibility by tailoring HR functions to a company's specific needs.
The idea behind Fractional HR is simple: Why invest in full-time HR functions when you can get specialized, cost-effective services as and when required? This approach is especially beneficial for businesses that might not have steady or high-volume HR requirements.
The process usually begins with the business identifying its HR needs. Once that's done, they approach HR outsourcing agencies or individual fractional HR consultants. After an initial discussion and understanding of requirements, the HR professional or team steps in. They might start by auditing existing processes, followed by implementing required changes. The engagement can be short-term, focusing on specific projects, or long-term, offering continuous support.
While both models offer external HR expertise, the key difference lies in the engagement's nature. Traditional HR outsourcing usually involves handing over specific HR operations to a third-party agency. On the other hand, Fractional HR is about hiring subject matter experts for specific durations or projects, ensuring a more personalized and hands-on approach.
Small businesses, in particular, stand to gain a lot from this model. With limited resources and budgets, they often can't afford a full-time, in-house HR team. However, with Fractional HR, they can get the best of both worlds: top-tier HR expertise without the full-time commitment. Furthermore, the benefits of fractional services extend beyond cost savings.