What really is fractional employment?

At Uberfractional.com, we have been asked many times to clarify and define what fractional employment is. We then want to share more information about it.

Definition of Fractional Employment:

Fractional employment is defined as "bringing a high level of skill and expertise to a company on a part-time basis."

It allows individuals to work a fraction of their time at one or multiple organizations, working "a project or 10 hours a week." Companies pay only for the "specific skills they need."

1. Benefits for Employees:

   Flexibility and Autonomy: Workers gain the ability to control their work schedules and choose how they want to live their lives. As the source notes, "It gave people what do I really want in my life, or time with my kids, travel more? How do I want to live my life?"

   Variety and Challenge: Fractional work allows individuals to pursue multiple roles across different companies simultaneously, reducing boredom and increasing opportunities to apply their skills. The source states, "One of the biggest reasons people choose that is because they are bored and want a challenge. They want to bring their skills and experience to a couple of different companies."

   Lifestyle Integration: Employees have the ability to work from anywhere, allowing for travel and lifestyle choices that may not be available in traditional full-time roles. "You can work from anywhere and create the life you really wanted that you didn't have an opportunity to do before."

   Access to Benefits: Despite not working full-time, fractional workers can still access benefits (medical, dental, 401k, profit-sharing) through companies like Talent Group as long as they average 30 hours a week.

   
   

2. Benefits for Employers:

   Cost Savings: Companies save significant money by not having to pay full-time salaries, benefits, and overhead associated with full-time employment. As the source states, “That would typically cost us over $1 million in payroll and benefits but we are able to get that for a fraction of the cost.”

   Access to Specialized Skills: Instead of hiring generalists, companies can bring in specialists with the specific skills they need. “A lot of companies hire a generalist if you will but now you can bring in a specialist, you can bring in three or four specialists.”

   Reduced Management Burden: Fractional workers require less management oversight compared to full-time employees. They are paying for “not having to manage that person and have them full-time on your payroll.”

3. Types of Fractional Roles:

   The source identifies that fractional roles are typically at a higher level with examples including: fractional Director of Marketing, fractional IT, fractional CFO services, and fractional HR. The roles are usually needed where a full-time employee at that level is not warranted by the company.

4. Growth of Fractional Employment:

   The source indicates a significant increase in fractional jobs, stating that they are "trending up by double digits since 2020."

   The pandemic is credited with a major shift toward fractional work, as people re-evaluated their priorities and work-life balance.

5. Target Demographic:

   The move towards fractional work seems to be driven primarily by "an older generation or more seasoned generation," who value flexibility and autonomy over a traditional work structure.

6. Future of Fractional Work:

   The source argues that fractional work is the "future" because of how it allows for workers to have a greater control of how they live their lives.

Bottom line:

Fractional employment is a rapidly growing trend that presents significant benefits for both employers and employees. The model allows companies to acquire expertise cost-effectively, while also providing professionals with more control over their careers, work-life balance, and lifestyle choices. The pandemic has accelerated this trend, suggesting that fractional employment will likely become an increasingly significant part of the future workforce.