Do You Need Six-Tenths of an HR Person?
Here’s a number that explains a lot. SHRM’s latest benchmark puts the typical organization at about two HR staff for every 100 employees.
Do the math for a 30-person company and you get six-tenths of a person. You can’t hire six-tenths of a person. So most growing businesses do one of two things: the owner quietly becomes the HR department, or HR gets handed to whoever seems most organized.
There’s a third option getting a lot of attention right now, and it’s the topic of this week’s episode: the fractional HR partner.
What It Actually Is
A fractional HR partner is an experienced HR professional, often a former HR manager or director, who works inside your business part-time. They aren’t a call center or a one-off consultant. They join your leadership meetings, coach your managers, handle the tough employee situations and build your policies, usually while serving a few other companies too.
The model is spreading fast. Harvard Business Review reported that the number of people calling themselves fractional leaders on LinkedIn grew from about 2,000 in 2022 to more than 110,000 by early 2024. And, it DOES NOT replace existing HR professionals within an organization, rather, it supplements and enhances them.
The Upside
Senior expertise you might not otherwise afford. The median pay for a full-time HR manager is now $149,280, according to the Bureau of Labor Statistics, and that’s before benefits and payroll taxes.
Costs that flex. You can add hours during a hiring push and cut back once the systems are built.
An honest outside voice. Someone who doesn’t depend on one company for a paycheck is often better placed to tell the owner what they need to hear.
The Catch
They aren’t always available. Other clients mean they may not be free the moment a crisis hits.
It isn’t hands-off. Someone inside the business still has to set priorities and keep communication open.
It doesn’t run payroll or benefits. A fractional partner makes the judgment calls, but the administration still has to live somewhere. That’s why many businesses pair one with an outside professional technology firm.
A Quick Gut Check
Ask yourself three questions:
Am I, or another leader, the go-to person for every employee issue?
Do I need HR judgment regularly, but not 40 hours a week?
Is my real need strategy and people problems, or mostly paperwork?
If you answered yes, yes and strategy, a fractional partner is worth a look. If your answer to the third question was paperwork, an outsourced provider or a PEO may fit better.
Next Steps You Can Take
Below, you can download a Free Checklist Resource for yourself. Note: Please listen to Episode 3 of The Employer Brief Academy for more information.
Check Out The Podcast & Resources
Website: https://theemployerbriefacademy.com
Site To Listen to the Show: https://don-hicks-tebap.captivate.fm/listen
Book Time With Don: https://calendly.com/don-hicks-hr-business-consulting/don-hicks-hr-business-consulting
Contact: [email protected] or (216) 407-3749
