The Benefits of Fractional HR for Growing Businesses

HR is an important function for any organization, yet building a full-time in-house HR team isn’t always possible. This is especially true for small to medium-sized businesses.

Fractional HR provides options when hiring in-house HR support isn’t feasible. This is a flexible, cost-effective solution that gives companies access to expert HR without the commitment of hiring a full-time employee.

Whether your company is in the process of growing, dealing with complicated compliance issues, or needing help with a specialized project, outsourcing HR offers the guidance and resources needed.

What is Fractional HR?

Fractional support is a service that allows companies to contract outsourced HR professionals for set hours or specific projects rather than hiring more employees. This “as-needed” option gives you access to expertise, allowing you to only pay for the time you need.

Services can range from handling daily HR administrative tasks to leading specialized HR initiatives such as recruitment, performance management, policy development, compliance planning, compensation review, workforce planning, and organizational development. This is a flexible system designed to grow and adjust to your business needs.

Benefits of Fractional Support

Fractional HR support provides several benefits, including:

Expert Guidance

HR involves everything from compliance and labor laws to conflict resolution and performance issues to change management and employer branding. With fractional HR, you’re working with experienced professionals who know how to navigate the challenges effectively, helping you remain compliant and build strong HR foundations.

Reduce Costs

Hiring a full-time HR professional costs, on average, $150,000 a year, not to mention the recruiting and hiring expenses. With outsourced HR support, you pay only for the time and services you need, making it more cost-effective for small and growing businesses.

Save Time

Managing HR needs can take a lot of time that you and your team could use to focus on other strategic business objectives. Partnering with an outside HR professional allows you to delegate needed HR initiatives to an expert, freeing up your time for continued growth.

Customized Support

Your HR needs won’t be the same year-round. Outsourced HR gives you the flexibility to customize support based on your current workload, phase, or specific challenges. This provides support whether you’re growing, onboarding new employees, or dealing with seasonal spikes.

Services Provided with Fractional Support

Fractional support provides expertise to support you through HR challenges and ongoing needs. This includes:

HR policy development and handbook creation
Workforce planning, including recruitment and succession planning
On and offboarding
Performance management
Employee relations and investigations
Compensation and benefit review
Compliance and risk mitigation
Training and development
HR audits
Terminations
Executive coaching

Whether you need strategic guidance or administrative execution, fractional support can be tailored to your unique situation.

How to Determine Your Needs

To determine if fractional support is the right solution for your team, start by asking:

What are our biggest HR pain points?
What HR areas are we struggling with?
Do we need ongoing HR support, or help with a one-time project?
What resources, such as time, labor, and budget, do we currently have available to manage HR needs?

While fractional support can be helpful for any organization, depending on the need, it is most useful for:

Startups and small businesses with limited HR resources
Growing companies in need of customized support during transition periods
Businesses with fluctuating HR needs throughout the year
Organizations with special projects requiring short-term or specialized HR expertise

Outsourced HR allows you to build the needed HR infrastructure so you can have a strategy in place that grows with you.

Making Sure Your Company is Supported

Fractional HR offers a balance of flexibility, expertise, and cost-efficiency for growing and transitioning businesses. This allows for reliable HR support without the overhead of a full-time hire.

If you’re looking for an option to improve your HR operations and get expert support tailored to your needs, HR Service, Inc. has the resources available. Contact us to learn more about our fractional HR services and how we can support your business at every stage of growth.