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Definition Guide

What is
Fractional HR?

The complete answer to the most searched question about fractional people leadership. 30+ monthly searches, growing demand.

30/mo

Monthly Searches

1-3 Days

Per Week

50-70%

Cost Savings

Quick Answer

Fractional HR Definition

Fractional HR is a model where experienced HR leaders—CHROs, HR Directors, and People Partners—provide strategic HR leadership on a part-time basis, typically working 1-3 days per week. Unlike consultants who advise externally, fractional HR professionals become embedded members of your leadership team, taking ownership of your people strategy, culture, and HR operations at 50-70% less cost than a full-time hire.

Breaking Down the Term

"Fractional"

Means a fraction of time—not full-time. Fractional executives work with multiple companies simultaneously, dedicating 1-3 days per week to each client. This allows businesses to access senior expertise without full-time commitment.

"HR" (Human Resources)

Refers to the people function—talent acquisition, employee relations, performance management, culture, compensation, compliance, and organisational development. At senior levels: CHRO (Chief Human Resources Officer), HR Director, or People Partner.

How Fractional HR Works

When you engage a fractional HR professional, they become your senior people leader—but part-time. According to CIPD research, this model has grown 43% since 2020 as businesses seek flexible access to senior expertise.

A typical engagement looks like this:

Example: Fractional HR Director, 2 Days/Week

What They Do:

• Attend weekly leadership meetings
• Develop and implement HR strategy
• Manage complex employee relations
• Lead talent acquisition for key hires
• Build HR policies and processes
• Mentor any junior HR team members

What They Don't Do:

• Day-to-day HR administration
• Payroll processing
• First-line employee queries
• Routine recruitment coordination
• Benefits administration
• (These are delegated to your team or outsourced)

Who Uses Fractional HR?

Fractional HR is most commonly used by:

Scale-ups (20-150 employees)

Companies that have outgrown founder-led HR but aren't ready for a £150k+ full-time CHRO.

VC/PE-Backed Companies

Portfolio companies that need professional HR leadership to support rapid growth and investor expectations.

SMEs Facing HR Challenges

Businesses dealing with tribunals, restructuring, M&A, or culture issues that require senior expertise.

Companies Building HR Infrastructure

Organisations that need to establish proper HR foundations—contracts, handbooks, HRIS, policies—from scratch.

Fractional HR vs Other Models

Model	Time	Role	Cost (Annual)
Fractional HR	1-3 days/week, ongoing	Embedded leader, owns outcomes	£67k-£135k
Full-Time CHRO	5 days/week, permanent	Full-time executive	£150k-£250k+
Interim HR	5 days/week, temporary	Gap-fill during transition	£120k-£200k
HR Consultant	Project-based	External advisor, no ownership	£50k-£150k
HR Outsourcing	Varies	Admin & transactions	£20k-£60k

Key Benefits of Fractional HR

1. Cost Efficiency (50-70% Savings)

Access CHRO-level expertise at a fraction of full-time cost. A 2-day/week fractional HR Director costs £94k-£114k annually vs £145k-£183k+ for full-time (including NI, pension, benefits).

2. Senior Expertise

Fractional HR leaders typically have 15-20+ years experience and have held multiple CHRO/HR Director roles. They bring pattern recognition and best practices from across industries.

3. Flexibility

Scale from 1 to 3 days per week as your needs change. Intensive during rapid growth or crisis, lighter during steady state. 30-60 day notice periods vs 3-6 months for full-time.

4. Speed to Impact

Start within 1-2 weeks vs 4-6 months to hire full-time. Critical when facing urgent HR challenges—tribunal, restructuring, or rapid hiring.

5. External Perspective

Working across multiple companies, fractional HR leaders bring fresh perspective and can quickly identify what's working elsewhere in similar businesses.

FAQ

Frequently Asked Questions

Fractional HR means hiring an experienced HR leader (CHRO, HR Director, or People Partner) on a part-time basis—typically 1-3 days per week. "Fractional" refers to having a fraction of their time rather than full-time. This gives companies access to senior HR expertise without the £150k-£250k+ cost of a full-time hire.

Yes and no. Both describe HR leadership that isn't full-time. However, "fractional" typically implies working with multiple clients simultaneously, operating through a limited company (contractor), and focusing on strategic leadership rather than HR administration. "Part-time HR" may suggest a single employer relationship.

Fractional HR professionals become embedded team members who take ownership of outcomes—attending leadership meetings, making decisions, and being accountable for results. HR consultants provide external advice and recommendations without implementation responsibility. Fractional HR is "in the boat rowing with you."

Fractional HR in the UK costs £700-£1,300 per day depending on seniority. For 2 days per week, expect £5,600-£10,400 monthly (£67,200-£124,800 annually). This is 50-70% less than the full cost of a full-time CHRO (£150,000-£250,000+ including salary, benefits, and equity).

Fractional HR leaders handle strategic people work: people strategy, culture development, talent acquisition leadership, complex employee relations, compliance, HR infrastructure, performance management frameworks, and investor/board reporting. They delegate HR administration to your team or outsourced providers.

Consider fractional HR when you have 20-150 employees and need senior HR expertise but not full-time; you're scaling rapidly; you're preparing for fundraising; you face complex ER issues; or you need to build HR infrastructure from scratch. It's ideal for companies outgrowing founder-led HR.

Ready to Explore Fractional HR?

Learn more about how fractional HR can work for your business, or browse available opportunities.

Complete HR Guide Browse HR Jobs

HR Cluster

Complete HR Guide HR Jobs UK HR Director Fractional CHRO Salary Guide vs Full-Time Part-Time HR

Model

Time

Role

Cost (Annual)

Fractional HR

1-3 days/week, ongoing

Embedded leader, owns outcomes

£67k-£135k

Full-Time CHRO

5 days/week, permanent

Full-time executive

£150k-£250k+

Interim HR

5 days/week, temporary

Gap-fill during transition

£120k-£200k

HR Consultant

Project-based

External advisor, no ownership

£50k-£150k

HR Outsourcing

Varies

Admin & transactions

£20k-£60k

What isFractional HR?

Fractional HR Definition

Breaking Down the Term

"Fractional"

"HR" (Human Resources)

How Fractional HR Works

Example: Fractional HR Director, 2 Days/Week

Who Uses Fractional HR?

Scale-ups (20-150 employees)

VC/PE-Backed Companies

SMEs Facing HR Challenges

Companies Building HR Infrastructure

Fractional HR vs Other Models

Key Benefits of Fractional HR

1. Cost Efficiency (50-70% Savings)

2. Senior Expertise

3. Flexibility

4. Speed to Impact

5. External Perspective

Frequently Asked Questions

Ready to Explore Fractional HR?

What isFractional HR?

Fractional HR Definition

Breaking Down the Term

"Fractional"

"HR" (Human Resources)

How Fractional HR Works

Example: Fractional HR Director, 2 Days/Week

Who Uses Fractional HR?

Scale-ups (20-150 employees)

VC/PE-Backed Companies

SMEs Facing HR Challenges

Companies Building HR Infrastructure

Fractional HR vs Other Models

Key Benefits of Fractional HR

1. Cost Efficiency (50-70% Savings)

2. Senior Expertise

3. Flexibility

4. Speed to Impact

5. External Perspective

Frequently Asked Questions

Ready to Explore Fractional HR?

What is
Fractional HR?

What is
Fractional HR?