Step-by-Step Guide to Hiring a Fractional Executive
Hiring a fractional executive requires a different approach than traditional recruitment. This guide covers everything you need to find, evaluate, and engage the right fractional leader for your business.
Step 1: Define Your Needs
Before searching, clarify what you need:
- What function needs leadership? (Finance, Marketing, Tech, etc.)
- What specific challenges need solving?
- How many days per week are needed?
- What outcomes do you expect?
- What is your budget range?
Step 2: Find Candidates
Best channels to find fractional executives:
- Fractional platforms: Specialist marketplaces
- LinkedIn: Search for fractional + role title
- Referrals: Ask your network, investors, advisors
- Interim agencies: Some offer fractional placement
- Industry events: Networking at relevant events
Step 3: Evaluate Candidates
Key evaluation criteria:
- Relevant experience: Industry and stage fit
- Track record: Measurable achievements
- Cultural fit: Working style alignment
- Availability: Can they commit required time?
- References: Speak to previous clients
Step 4: Structure the Engagement
Common engagement models:
- Day rate: Pay per day worked
- Monthly retainer: Fixed fee for agreed days
- Project basis: Fixed fee for specific deliverables
Step 5: Set Up for Success
Ensure a productive engagement:
- Clear objectives and success metrics
- Regular communication rhythm
- Access to necessary data and people
- Decision-making authority defined
- Integration with leadership team
Contract Essentials
Key contract terms to include:
- Scope of work and deliverables
- Time commitment and availability
- Rates and payment terms
- Notice period (typically 30 days)
- Confidentiality and IP
- Conflicts of interest policy
Red Flags to Watch For
- Vague about previous results
- Unwilling to provide references
- Overcommitted with too many clients
- Poor communication during process
- Resistance to defined metrics