What is a Fractional

Fractional work is part-time work, typically paid on a monthly retainer, performed by experts in their field. A fractional job looks very similar to a full-time job, except the work is done on fewer hours per week for less pay.

Independent contractors like freelancers and consultants are not new, of course. Fractionals are independent contractors too, but that’s about where the similarities end. Fractional job responsibilities look identical to that of senior-level full-time employees.

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Part-time Work

Yes, “fractional” is a fancy word for part-time. A fractional employee may work 10 hours per week for a company (or 5, or 20). And they’ll often work for multiple companies at once.

To date, we’ve assumed that every job function requires exactly

40 hours of output per week. The 40-hour week served Henry Ford

100 years ago, but obviously much has changed since.

Companies today can determine they need exactly 10 hours per

week of CFO leadership and get exactly that. 

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The bottom line is that companies that leverage fractional work can

build a more efficient team with exactly the skills and output needed,

with lower burn (i.e., cost).

The Monthly Retainer

Fractionals are typically paid on a monthly retainer, meaning $X,000 per month, for a set commitment of hours. This is important because fractionals are an embedded resource on the team. This isn’t meant to be a one-off project with a fixed cost (which also differentiates fractionals from freelancers).

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The relationship to a commitment of hours is also important. Companies get exactly the output they pay for, and nothing less or more. Compared to full-time employees, this is a much more transparent outcome for both sides.

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Fractional work is designed to be a medium-to-long-term relationship with increased transparency, and the monthly retainer reflects that.

Experts in Their Field

The term “fractional” implies someone who is an expert in their field. It’s often someone who has leadership and management experience. There are fractional experts in every field you can name. Marketing, Design, Sales, Engineering, Product, Finance, Operations, People, Data, etc.

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Most fractionals are 10+ years into their career. They’ve honed their craft as full-time employees and are now able to drop into a company to add expert value quickly. This value comes in the form of providing strategic guidance, doing hands-on work, managing a department (including full-time employees), hiring and firing, and more.

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If this sounds like the description of a senior-level full-time employee, that’s the point. The only difference is the work is done fractionally, i.e. less hours per week for less pay.

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Since most fractional experts stack multiple clients, although they are paid less per client, their total compensation is the same (or in most cases, greater) than an equivalent full-time role.

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Companies therefore get the benefit of an expert in their field without having to pay a full-time price for it. The experts get to work with companies that otherwise would never be able to afford them and get a more flexible work-life too.

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Credit to Taylor Crane, Founder Fractional Jobs

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