When is the Right Time to Hire a Fractional Executive Over a Full-Time Employee?

Deciding whether to hire a fractional executive or a full-time employee?

Adding a new team member is always a big decision. Here are a few things to consider when making this decision:

Goals

Consider your organization's specific needs and goals. A fractional executive may be a better fit if you need specialized expertise or leadership for a particular project or initiative. If you require ongoing leadership and management of the company, a full-time executive may be more appropriate.

Budget

Consider your budget and resources. Hiring a full-time executive can be expensive, as it often requires paying a salary, benefits, and other compensation. Fractional executives are a more cost-effective solution. You make smarter investments by contracting 100% of an expert’s skill set for the time you need, not recruiting, interviewing, hiring, onboarding, and paying a full-time salary with benefits.

Timeframe

Consider the timeframe for your project or initiative to start and end. A fractional executive is a better fit if you need immediate expertise or guidance for the next few months. A full-time executive is a better fit if you require 40+ hours/week of work without a sense of urgency to get started. In most urgent cases, bringing in a fractional executive ASAP makes sense.

Risk Tolerance

Consider your risk tolerance. Hiring a full-time employee is a long-term commitment and comes with turnover risk and potential cultural fit issues. Fractional executives offer a lower-risk option, as you can end the engagement when the project is complete or if you’re unsatisfied with their performance. You also get to begin working with them immediately to ensure it’s a good fit, instead of spending several months courting a full-time employee and waiting for them to begin onboarding.  

Hiring a fractional executive or a full-time employee will ultimately depend on your organization's specific needs and circumstances. It's important to carefully evaluate your options and choose the solution that best aligns with your goals, budget, timeframe, and risk tolerance.

Want to learn more about fractional executives and how they can solve your company's problems?

Read this post: What is a Fractional Executive?

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