Why it’s time more firms embraced fractional and interim appointments

As a result, different types of roles are emerging. And one of the biggest trends in the job market of recent years has been the rise of fractional executives – particularly in finance. These roles tend to be senior and filled by experienced candidates who work for a business on a single-digit number of days per month. They often do this for several clients, building up a portfolio of companies and sharing best practice between them.

The main advantage of such an approach is that it gives small businesses with plans to grow access to highly skilled individuals that they may otherwise not be able to afford on a full-time or even part-time contract. Typical chief financial officer (CFO) salaries in the UK can range from £90,000 to £150,000 per year, for instance, stretching far beyond that at the top end.

For early stage, high-growth potential companies in the likes of the tech, life sciences, consumer goods, and food and drink sectors, that may be beyond their means. But having a skilled CFO with a good track record who can guide them through a period of rapid expansion, an important transaction, or financially complex projects may help propel them to the next level.

The other benefit of a fractional hire is its flexibility. While a role may start as a day per fortnight, if you are negotiating with banks on a fundraising round, for instance, you can increase the number of days you need your fractional CFO. In all likelihood, this will deliver you a better outcome than relying on more junior talent and, depending on business performance, you can maintain the CFO’s hours or reduce them again as required.

If the requirement for a CFO is for a very clearly defined period, a fractional appointment in itself may not be the best approach. Even these roles do not need to be a permanent arrangement – instead it could be interim to cover a specific gap in expertise that needs filled temporarily.

Broadly speaking, interim appointments are made for six to 12-month periods, but they are usually on a four or five-day per week contract. They often arise when an internal promotion has been made or someone has resigned, and the company wants access to specific talent at short notice while management consider their options for a more permanent solution.

There are instances where the two can even work hand in hand. If you are deliberating between the two for what could arguably be an interim or fractional role, you could take the candidate on as the latter in the first instance to shape the position and make a decision from there. It may become clear that the requirement is interim or needed long-term on a more fractional basis.

Figures from Statista indicate there are 25.6 million and 9.8 million people in full-time and part-time jobs in the UK. By contrast, albeit there is no exact data, LinkedIn figures suggest the number of fractional executives to be just over 100,000. So, it is inevitable that jobs are thought about in terms of either being full or part-time when those types of roles still dominate the jobs market – but these arrangements can be costly when it comes to senior staff.

Nonetheless, there is a talent pool out there craving the opportunity to add value – whether through leadership style, technology expertise, fundraising potential, or greater commercial acumen – whilst retaining the flexibility of a more independent lifestyle. A fractional or interim hire can provide businesses with access to highly skilled expertise when they most need it – without the risk of having to overcommit. And that’s exactly what many organisations require in increasingly uncertain times.

Derek Lauder, director at Rutherford Cross