Fractional HR / Interim CHRO

Service description

A fractional HR leader, or interim chief human resources officer, provides senior people leadership on a part-time or temporary basis. The leader sets policy, designs the organization's structure and roles, and guides hiring, compensation and employee-relations decisions. The aim is to build the HR function the business will keep or hand to a permanent hire. Engagements run on a set schedule of hours each week.

Common industries

Applies to growing companies without a senior HR leader, across industries.

ROI

Executive people-leadership without a full-time hire, at the stage where HR mistakes get expensive.

Benefit

Senior HR leadership part-time — policy, org design, and people strategy — for companies without a senior HR person in-house.

Why get it

A growing company faces employment decisions with legal consequences before it can justify a full-time executive, so part-time leadership fills the gap without a full-time salary.

When you benefit

Ongoing for a defined period, usually months or longer, until the business hires a full-time leader or the foundations are in place.

What it costs

Monthly retainer.

When you pay

Providers typically bill a monthly retainer tied to a set number of hours each week, or an hourly rate for smaller scopes. Retainers are usually invoiced monthly in advance, often with a minimum commitment period.

Other costs

HR software and any specialist work outside the engagement, such as legal review or recruiting fees.

Risks to know

A fractional leader works limited hours, so urgent issues can wait for scheduled time and knowledge can leave when the engagement ends. Unclear scope, or unclear authority over decisions such as terminations, leads to gaps and disputes. The leader is not a substitute for legal advice on a specific employment dispute.

When risks arise

Risk is highest at the start, before scope and authority are agreed, and at the end of the engagement, when documentation and handoff decide whether the work lasts.

The process

The provider assesses current policies, practices and risks, then agrees a scope and priorities with the business. The leader works through the plan in scheduled hours, covering policy, hiring, compensation and manager coaching, with regular check-ins with leadership. At the end, the provider documents what was built and hands it off.

Your commitment

The business names a point person with authority to decide, shares current policies, headcount and open issues, and agrees how many hours each week it will need. It should set priorities for the first months so limited time goes to the most important work.

Documents to gather

• Current employee handbook and HR policies
• Org chart and headcount by role
• A list of open HR issues or pending personnel decisions
• Summary of current pay and benefits programs

Helpful reading

• How Part-Time Senior Leaders Can Help Your Business — Harvard Business Review
• How to Make Fractional Leadership Work — Harvard Business Review
• 5 Questions Leaders Should Ask Before Turning to Fractional Work — Harvard Business Review