Fractional Recruiting

What is Fractional Recruiting

Why employ the Fractional Recruiting model for your business?

Finding an executive or hiring someone to search an executive has become too costly. Especially when unemployment has been in a downward trend since the financial crisis, finding a full time equivalent for an executive position has been very difficult.

Firms have tried to adjust by giving more duties to existing leadership, but this has a tendency to lead to overburdening existing executives. Again, it’s a job seeker’s market out there. So an overextended executive will eventually lead to an unhappy executive, who will likely jump to greener pastures and better pay.

So what should firms do?

At Vested, we have become pioneers at finding executive level talent at a reasonable cost. We do this with our $999/monthly subscription service. We also do this by recruiting fractional executives for firms who need executive talent but have a limited budget.

It’s great for the following reasons:

What is a Fractional Employee?

This term originated in universities and colleges, where professors and university level employees divided their time. Professors often have many interests. They are sometimes needed in government to work on special projects, like consulting on the construction of a Mars Rover.

Or perhaps it’s a professor who excels in Finance thought leadership so he or she is hired by Wall Street to teach at their employee training sessions. Because of their demand, professors work in academia as well as in government or private businesses.

They may lecture a couple of days in university and spend Fridays in Wall Street, teaching CPE courses at an investment bank.

Fractional employees are not freelancers so their job is not based on project completion. They can be retained on an ongoing relationship, so he or she can be an adjunct professor at a local college and provide consulting services to a Wall Street firm on the side. Institutions prefer to retain them on an ongoing basis because of their expertise about a particular subject.

Fractional employees generally forego benefits like 401K or health and dental, but they receive greater flexibility in hours and commitment. Many workers prefer this relationship because of greater flexibility over work/life balance.

Why use a Fractional Employee for Business?

I’ve already discussed how some Wall Street firms often use fractional employees to teach their training courses. Every summer a Wall Street firm welcomes their new associates and entry level analysts into their ranks.

Most often, especially the entry level analysts, have little to no exposure to accounting rules or finance theory. Moreover, working in the financial services industry means passing certain tests to achieve certifications.

Many Wall Street firms hire accounting and finance professors at top local universities. They are already skilled in handling a classroom.

Plus, they are considered the best in their profession. Who better to teach the new leaders of Wall Street?

For the professors, they get paid a lot of money during the summer (when universities are closed) and it becomes an easy routine for them. This relationship works for both sides:

  • Professors get an on-going work without sacrificing their normal duties at a university
  • Wall Street firms don’t have to pay benefits to get top level educators to teach their employees

It’s much more cost effective for Wall Street firms to have this relationship as they don’t have to pay the benefits.

Fractional Recruiting is Excellent for Startups

This employee-employer relationship works very well for startups. For fast growing startups, there’s always a need for experienced C-Level executives.

Often, startup founders are led by engineers or very technical people, or they are led by newly minted MBAs.

For the founders with an engineering background, they have excellent coding skills and product development but lack the financial savvy to attract venture capital.

For the MBAs, they have the financial savvy, but have very little coding and product development skills.

Often, C-Level executives are needed to fill the gap or need within the organization. The technical founder needs a CFO or a Controller to handle the finances and to pitch to venture capitalists.

The MBA founder needs a CIO or Product guy or gal to develop the actual product to sell.

Unlike large established firms, startups do not have an unlimited budget. They often have to make sacrifices. More often, limited capital is used to build the technology and improve the product, leaving very little for recruiting and retention of C-Level executives.

This is where fractional recruiting is a game changer for startups.

By employing a fractional recruiting relationship, a startup can fill the talent gaps within their organization without sacrificing a long term commitment to a particular person. It can be try out for both sides.

The startup can use a fractional relationship to assess if a particular person is the right candidate long term. Conversely, the fractional employee can test to see if there is a potential future with the startup. Since there is no long-term commitment, any side can walk away from the relationship.

Both sides of the table benefit from a fractional relationship

The startup can fill the talent gap in the organization by having an experienced C-Level executive on the team.

Whether it’s a CIO to help build the technology or a CFO to manage the finances, the startup can employ a highly skilled individual to help push the startup to the next round of funding.

If all works out, the fractional employee can be extended a full time offer to fill the job once capital is more abundant.

The employee benefits by building institutional knowledge of the startup. He or she may not have the benefits of a full time employee, but the fractional employee will have a better work/life balance.

Moreover, he or she can walk away at any time if the role is not right. When capital is no longer an issue, the fractional employee will most certainly be at the top of the short list for the C-Level position.

Why Vested is the best resource for Fractional Recruiting?

At Vested, we have a strong history working with startups like care/of, Trustwave, Peloton and Convoy. Their stories and testimonials can be found here.

Moreover, as an early stage startup, Vested also knows the dilemma firms find themselves in when they have to choose between product, technology or hiring talent.

With agency recruiters, they can charge as much as 45 percent of first year salary to find an executive.

This is a non-starter for almost any startup. At Vested, we have a pool of candidates willing to work on a fractional basis.

We provide the recruiting service at an affordable cost, and provide a dedicated member of our support and recruiting team to help with the ongoing relationship.

We understand startups go through various stages of radical growth. We too have experienced the famous “hockey stick” effect of startups so it’s necessary to find the appropriate working relationship with a fractional employee.

The working relationship can be a 60, 90 or 120 day plan, but if you don’t plan properly, the departure of this fractional employee could leave a gaping hole in the growth of your startup.

There’s also the matter of compensation. We can work with you to discuss how best to structure the compensation.

It can be balance of salary, equity or work/life balance. Every individual is different and every company is different. We will work with your company to structure the best fractional employee relationship that makes sense for both sides.

To better understand if fractional recruiting makes sense for your business, contact us for a complementary consultation of your HR needs.

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Fractional Recruiting

Why Fractional Recruiting Works With Millenials

It is an estimate that Millennial will be contributing to the 50% of the workforce by the end of the year 2020.

Younger workers are a bit different. They know their career destinations like everyone, but they even know how to travel the path. Their personal communication and their culture really matters to them.

The millennial generation is unique, and they decide their future without any presumptions.

Most interestingly, even the consumer demographics are mostly comprises millennial. So, why not hire people who think alike our customers to improve the chances of our success. It can be a guarantee to success.

Above all, the current work situations demand ample strength and young blood that can be handles by young workforce only. With the passage of time, the older generations have become less agile and less active.

Hiring these millennial or channelizing their energy is not that easy. They are born and brought up in a generation where everything is instant and online.

Their mindsets and skills are different from other generations and hence we need a different recruiting strategy to accommodate such a big work force.

Fractional recruiting, a very concept of Fractional marketing believes in hiring temp employees. Rent a property rather than owning it. It is as simple as that. Fractional recruiting does not incur major costs and time investment.

It is best for startups as they are always short on their resources and high-on demand. It has its own set of benefits and is suitable for both the employee and employer.

How hard a founder can try, he cannot perform all the jobs alone. Moreover with the start of business he definitely needs to put in more efforts to the customers and products. Fractional recruiting help startup founders overcome their limitations by minimizing costs to hiring.

Fractional recruiting works best in the case of millennial. We have enlisted these few logics to prove our point.

Career expectations

The career expectation of a millennial is different to that of older generations. The amount of effort and cost they put into their education and life make them desire high paying jobs. They often feel dissatisfied when working at a profile lower than they demand with insufficient wages.

It generates some kind of frustration into them. Fractional recruitment helps them to choose the career path of their own choice. it opens up new ways for them to earn higher and serve their responsibilities more efficiently.

Advanced technology

Millennial obviously prefer tech savvy companies during their hiring process. Their life runs on technology. They don’t like to visit their offices regularly. Instead, they prefer using advanced technology to mark their presence at their workplaces. Fractional hiring allows them to be a part of system even without joining it formally.

Faster career advancement

Gone are the times when people used to believe that slow and steady brings the race and steadiness make your life more beautiful. The new generation is all about speed.

They need to learn, enhance their experience and move on to a new journey. The fractional recruiting dynamic has opened the new doors of progress for them. Their jobs don’t tie them anymore, and they are kings of their lives.


The ambitious attitude of the millennial serves as the strongest base behind the popularity of the fractional recruiting model. They are ambitious enough to not tie them to stagnant jobs and trying their hands in every other field.

They know that long-lasting contracts will make them dull and kill their ambitious instinct.


Above all, the 21st century generation loves their independence, and they never put it some else’s hands. This is what makes them more confident and proud. They live their lives on their own terms.

They see fractional recruitment as a golden opportunity because the platform let them work and enjoy the freedom simultaneously.

Hunger to learn

Millennial possess an insatiable hunger for knowledge. They are always up for new experiences. However, being stuck at a single organization is no more than a break to their learning journey.

It stimulates their creativity. The new generation believes in an ongoing journey and creating fresh experiences on their way.

What be a better option that fractional recruitming?

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Fractional Recruiting

How a part time CEO can bring value to your business?

What was your first reaction when you heard that Bill Gates would be running Microsoft on a part-time basis until the recruitment of another chief-time executive?

Whole business world was titillating at this announcement.

‘Outsourced’, ‘part-time’ or ‘fractional’, these few words were unheard until few years. As we speak more about fractional recruiting, we get to know the sense behind these words. The arrangement is becoming more and popular these days and a lot more people are interested to enter this set up.

There are many startups that need seasoned CEOs but couldn’t afford it due to their limited resources. This part-time solution works fine with both the parties.

Modern businesses run on talent and are always in search of talented people that love to embrace their freedom, independence and go off the books, the freelancers.

These people are known are “supertemps” and they very well know how to maintain their position and a powerful personnel. They are not your average, regular temp worker.

The phenomenon is powerfully gripping the business world and its benefits are proven.

What is a fractional or part-time CEO?

Fractional or part-time CEOs are best suited for mid-market organizations that either don’t need or afford a full-time leader who can guide them from his knowledge and strategic leadership qualities. His skills can bring the same aura as an accomplished and experienced CEO would bring to the company. This is the charm of Fractional marketing set up.

Though fractional CEOs are the part-time additions to the startups yet they function as the full-time CEOs discussing the marketing related opportunities manage strategic marketing events of the start ups, conducting various workshops and marketing audits.

Hiring a Fractional CEO is much like “renting instead of hiring” with no long-term commitments- saving time, recruiting costs, shortening of delays and elimination of interviews and relocations.

Their necessity in the market

These days business grows at a very dynamic pace. There is no precise formula about that defines the requirement of C-suite authority. There can be no universal indicator especially when it comes to small level businesses. Even the executive level businesses face challenging business transformations at time and look for some specified augment level services for an interim period of time. The advanced technology has made it easier to access the exquisite talent and contact it remotely. Almost all size of companies contract with on-demand CEOs or we can say Fractional CEOs.

Benefits of hiring a Fractional CEO

Well, it can be highly beneficial for your startup. They serve you with the services you require without increasing your overhead expenses.

They impart their knowledge and talent temporarily to your company and help you plan a long-lasting insight. They understand what metrics are key to a successful startup.

The market is full of outstanding talent who has a leveraging thrust and significant experience to help a start up but, they don’t want to take up full-time position or change their location. The basics of Fractional marketing explain how hiring an experienced CEO impacts your clients hugely and potentially get your startup a meaningful position in the market. Moreover, it is an opportunity to work and learn under different leaderships. The list of benefits of hiring a Fractional CEO is endless.

  • Experience: It enables your startup to work under the vast experience of trained leaders. Fractional CEOs have been through the problems you don’t even know of, and they have dealt with them in the past very well.
  • Scalability: Their experience and skills scale up you start up faster. Your fractional CEO knows how to make the plan and how to execute it.
  • Trust or respect: As already discussed, the Fractional CEOs are usually a big name in the market. They are trusted for their past experiences and reliable because of their problem solving attitude. Investing in them is like getting advice from your seniors without putting your picket in danger.
  • Practicality: The founders cannot do everything on their own even if they are limited on their resources. They will always need a forced rank order for a better impact. Fractional marketing CEOs bring this kind of atmosphere into your startup.
  • Guidance: Anyone can copy and paste from Google if the data is going up but there are hardly any people why can explain the reason behind it. Fractional CEOs are the guidance that help can help you bounce back.

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Fractional Recruiting

How Fractional Executives Benefits Start Ups

If your business is all set to participate in the uneven recovery of economy efficiently, you are fortunate enough.

But being this fortunate is not a guarantee that you will be able to afford full-time executives to oversee your expanding human capital. Human resource is a vital part of a startup but it definitely has a cost.

A start up need strategic initiatives to determine your course of action but it is definitely difficult to afford its cost.

Till date talent management is considered as one of the greatest challenge for founders. Despite putting all their efforts they nearly fail to recognize the right employees in their first year of business.

It incurs an extra cost and pressure to the newly born business and may lead them to the path of failure. The next option is to set up a recruiting department that may help you find the right talent, at the right place and in a right cost.

But, setting up a whole-new department is itself quite costly. What can be the solution?

Hiring a fractional executive can be the ultimate solution for startups or growth phase businesses. Fractional recruiters are leaders who become an essential part of their business from the part-time additions.

Their decades of experience and high-level proficiency can be seen in their “been there, done that” attitude. They are senior level people having a great experience with the real world. They have a grappling experience of facing the situation one cannot even stand.

These high-level freelancers work for only a percentage time of a full-time but can bring the same credibility and skill set as of a full-time employee.

We have summed up the benefits of hiring a fractional executive in 3 major points.

Scalability with company growth

Startups often face a major challenge in identifying the appropriate timing of introducing the right talent to your system.

If you are following the legacy employment model, you will on-board the talent prior you start earning revenues and this way a full-time hire will affect your profitability implications negatively.

And this is the benefits with fractional executives. Companies can ramp them up at the same time when organization is growing.

On the behalf of organizations, these executives are much better than full-time hires because they are at a higher experience level and need almost zero training before taking up your work. It helps the organization to plan the ramp more effectively.

Managing margins

Startups need the right talent most, but they lack the resources to hire the costly full-time executives. A fractional executive, the top talent becomes the part of the organization without any expensive cost tag.

In simple words, startups get 100% expertise and brain power without spending 100% of the true costs. It saves margins and bottom line.

Fractional marketing is an access to hiring the big brain talent on a fractional basis. Companies get to brain tap the most trusted minds that would be otherwise beyond their budget.


It is very important for startups to focus on their clients, customers and missions initially. Although talent management is also a crucial part of establishing the business, finding the right talent comes at a cost of focus on product or service or delivery.

The process of finding, bringing and hiring the new talent is more critical because they need much more turnover than running businesses. Fractional executives are skilled freelancers that grow with the company.

They basically free up the founders time to concentrate on finding more employees. This way founders get enough time focusing on their individual responsibilities and follow the company’s goals and timelines.

In short, you get the same skill set at hourly-bill rate instead of a monthly price tag. You don’t need to sit them idle for hours and perform when required. Instead, you can simply contact them when there is a requirement.

They may work out of your sight or office, but they will always be in the system through external emails and deal with the things even when they will be physically absent.

The experienced and reliable power houses will send emails from their home, make late night calls and would be available even out of the clock.

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Fractional Recruiting

Why early startups should use Fractional recruiting?

Let’s admit it- amidst the struggling and successful launch of a company it becomes really difficult to have a spectacular vision of recruiting and human resource development.

Hiring is not easy and it becomes even difficult when you are at an early stage of developing a business.

All the startups face two most common issues when it comes to hiring.

  1. Hiring is slow. Whatever they do, they never happen to do it speedily.
  2. The quality of hires keeps bothering them even after a year of starting up. They suddenly realize that they have woken up in a pool of mediocre.

Both these concerns are quite real. Obviously, founders need to wear so many caps that they are never left with adequate sources to seek out, recruit, or train the talent effectively.

Human resources is often an overlooked department that plays a really important role in succeeding your business. Hiring the right talent is an utmost necessity if you want to pave a smooth path towards your success.

It helps you while expansion and implementing your policies effectively. It is important and it definitely needs a big investment as well and that’s why start up businesses turn towards fractional recruitment.

What is Fractional recruiting?

Fractional Recruiting is a procedure of outsourcing human resource requirement to a third party instead of setting up an internal department for the same process. It helps you to cut off overhead and expenses.

This cost-effective HR solution helps you achieve an expertise in this particular field of business depending on your current needs.

It also provides you with the flexibility of having professional human resource expertise on-demand only for the definite set of period.

A startup needs a whole team to process their functions. It needs a HR Administrator, HR Generalist, HR Manager, HR coordinator and HR director.

The whole process can be carried out by an entire team or a single person depending upon your requirement. However, everything comes at a cost and efforts and it is not that generous in case of Human resource management.

Fractional recruitment eases the process of hiring and functionality in case of start-ups. It can benefit the recently started business in following ways.

  • Budget-friendly nature: No matter in which sector you are starting, hiring new full-time employees is always heavy on your pocket. Hiring a new employee and training him up-to-the-mark needs a minimum investment of 6-9 months. The investment refers to money and time both. Fractional marketing includes experienced that does not incur the same cost as of the full-time employee.
  • Their vast experience: Fractional recruiters are high-level freelancers that have a great experience of assessing human resources. They have a definite set of interviewing questions and tools, and they always have a good coordination with past employees.
  • Reduces your stress: Human resource management is not as easy task and it includes dealing with uncomfortable situations at times. It builds a lot of stress, especially in small or mid-sized businessman who try to handle their HR department on their own. Fractional HR alleviates the emotional trouble from your business.
  • Infrastructure: You get assistance in compiling necessary templates that are often overlooked. These templates play an important role in growing a business. The templates include employment applications, offer letters, termination letters, employee surveys, performance reviews and much more.
  • Culture: Fractional recruiters help you develop an organizational culture at a minimum cost. They help you understand how engaged your employees are and the temperature around diversity and inclusion. They assess your culture and give you recommendations for improvement.
  • Flexibility: Even HR needs change and updations over time. Fractional recruiters expertise in different areas and their diverse expertise includes various skill sets. Hiring such a person will allow you to focus on more relevant parts of your business leaving this column stress free. These recruiters are flexible enough to work with any kind of leadership and set of employees.

With the multi-level recruiting needs of a startup, nothing can be more suitable than Fractional recruiting.

It keeps you stress-free, allows you to spend your time in more important relevant departments and is lighter on your pocket. You practically get more time in running your business efficiently.