In today’s fast-paced, ever-evolving business landscape, companies – especially startups – are rethinking how they build their teams. But how has a term that was barely known five years ago, ‘fractional’, become the key to unlocking scalability and growth for so many fast-growing businesses? 

What is fractional working? 

As with many great terms, the key is in the name: fractional. Put simply, it refers to skilled professionals working part-time or on-demand across multiple businesses, providing expertise without the commitment of a full-time employee. It’s like a business version of "pay as you go" – but with more strategic involvement. Unlike traditional outsourcing or contractors who typically handle specific tasks, fractional teams are more integrated into the company’s operations and long-term growth trajectory. They contribute not just to day-to-day needs but also to shaping strategy, offering a deeper level of engagement. 

The perfect storm – the rise of fractional working 

It’s hard to imagine today, but before the pandemic, online collaboration was often challenging and inefficient.  In 2020, enforced homeworking and the associated global surge in demand for improvements in remote co-working technology, completely transformed how businesses operate. Before the pandemic, virtual work was merely a means to an end. Today, four years later, it has become the goal for many businesses and workers alike. 

The pandemic wasn’t the sole driver of this shift. Even before 2020, trends like the rise of the gig economy, freelance marketplaces, and virtual assistants were setting the stage for the fractional workforce. Initially driven by freelancers, these models often lacked consistency and strategic alignment. However, they planted the seed for a growing demand in flexible staffing solutions, paving the way for a more professional and integrated approach to fractional work.

As ever, when technological and ideological revolution are paired, the result is inevitably change. Then mixed with cost inflation, a constant pressure to streamline business operations and the advent of AI, you get the perfect storm of innovation and necessity. The result: a brand new, intensely flexible, innovative, and professional staffing model. 

What does all this mean in reality? 

For any business, staffing and employment come with significant risks. The risk of hiring the wrong person is high, as are the costs involved in finding the right talent. With forthcoming employment legislation tightening the rules around unfair dismissal from day one of employment, the stakes for employers have never been higher to get it right. Combined with a challenging economic climate, businesses are increasingly searching for more agile, cost-effective staffing models. Here’s where fractional staffing or teams come into play. 

• Scalability and agility: as a business grows, its trajectory is never linear. The need to scale up or down capacity is natural. The ability to meet these changing demands becomes easy with outsourced fractional teams. Having the resource that moulds to its needs, when they arise
• Cost-efficiency: the flexibility of a fractional solution allows businesses to pay for the skill and capacity they need, when they need it, without the burden of a full-time salary, benefits, or other associated overhead
• Access to specialised expertise: fractional resourcing can provide businesses with access to specialised expertise for the exact skill and capacity they need
• Productivity: in a sector where burnout is common, startups and scaleups can bring in additional capacity to bolster their existing staff. This allows employed staff to focus on core business tasks without the constant distraction of ancillary projects
• Fresh perspectives:  bringing in teams that work across multiple businesses introduces fresh ideas and new perspectives, enriching the overall approach to problem-solving and innovation

How do I embrace fractional teams in my business?

The concept of ‘part time’ working is not new. Fractional CFOs and CMOs are a familiar part of the advisory landscape (although pre 2023 were termed ‘part time’). In addition, businesses are familiar with outsourcing skills to agencies such as bookkeeping and marketing. 

However, the growth of fractional working and teams is being driven by a new breed of agency.  The concept of ‘insourcing’ – directly into business teams for operational, non-executive roles.  A concept evolved from the pre-2020 term "virtual assistance."  No longer the bastion of kitchen table working, these agencies now attract top-tier professionals who are no longer content with static office roles. Those individuals who either can’t or won’t work a classic desk-based job but are still ready and waiting to embrace roles that allow them the flexibility they need with the career progression they deserve.   

Conclusion 

Fractional teams offer startups and growing businesses an exciting new way to scale, access expertise, and capacity whilst staying agile in an ever-changing economic landscape. By adopting this model, businesses can reduce risk, lower costs, and unlock a world of specialised skills. 

As more companies embrace this flexible approach, it's clear that fractional working is here to stay – and it's set to transform the future of work for the better.

This article originally appeared in the November/December 2024 issue of Startups Magazine. Click here to subscribe