Companies will be relying more on contract and interim labour
From the SeasonedPros.ca Insights Lab
In the world of talent acquisition, 2023 will be the year of Fractional.
This is the year when contract, interim and project-based hires will go mainstream.
With economic uncertainty in the air, companies of all sizes are reconsidering their hiring strategies and mitigating risk with fractional hires.
The talent dilemma
There was a time when IT and basic administrative tasks were the main areas of the contract hire.
But with talent shortages and gaps springing up in all specialties across the business sector, the fractional hiring model has expanded beyond IT and admin.
Good talent is still in demand. Organizations still need the right people and skills to help them with growth plans, projects and innovation.
Fractional hires enable companies to achieve their goals while keeping a close eye on the budget.
What is a fractional workforce?
Fractional is sometimes referred to as the alternative or the contingent workforce.
The fractional talent cohort consists of:
- Contract workers
- Freelancers
- Independent subject matter experts
- Professional consultants
- Single-project workers
This talent is hired on a contract basis, usually for a specified period of time. They are not full-time by choice. Many have left full-time careers and returned to the market, offering their services as experienced independents.
Who needs fractional hires?
A small business or entrepreneur might use the fractional model to contract the services of a CFO during a restructuring. A fractional marketing expert can be hired to help with a product launch.
A fractional hire can be an interim leader hired by a small business or non-profit to bridge a company through a change at the top. They can also be used to do a project in operations, HR, marketing, procurement or finance.
A non-profit organization might use a fractional hire to complete a grant proposal or a defined time-based project.
Agility, speed and flexibility
A fractional workforce is a new approach to doing business.
Fractional talent does not require the long-term commitment and cost of a full-time hire. This is attractive to businesses that are managing costs during times of economic uncertainty.
The fractional model is attractive to businesses because contract workers arrive with experience and are able to “hit the ground running” without a lot of investment in training and onboarding.
The search time for talent is shorter and more cost-efficient.
Managing the fractional workforce
Leaders and HR managers need to reconfigure their talent acquisition and workforce management strategies to access fractional talent and realize the advantages they offer.
They need to build relationships with contractors and organizations that supply independent talent to put reliable pipelines in place.
When a fractional worker is hired, it is important to integrate them into the organization and inform them of company values and business goals.
They will be working in teams consisting of other fractional workers and full-time permanent talent. Fractional and contract talent must be welcomed, respected and valued for their expertise. If they aren’t, they will move on to another organization.
The mix of talent will be different, more flexible and agile. Strategies have to be built to integrate this new workforce model and leverage the benefits of the fractional workforce.
SeasonedPros.ca is an on-demand business talent source. Clients with an immediate need for experienced talent trust us to source professionals for project, interim and part-time roles. Each professional in our national database has 20 + years of business experience. We provide our clients 2-4 four vetted professionals in 10 business days or less.