In recent years, we have seen a rise in fractional work across many industries. In some industries, fractional work has been the norm, and in others, it is a new way to allocate resources.
Sarah Mullins, Founder of uptreeHR, says, “We have seen our fractional HR service increase by 83% since 2020, with more demand and inquiries than ever.” The benefits that have contributed to the rise in this trend are not only for companies but for workers. Let’s discuss examples, benefits, challenges, and criticisms of this model.
What is fractional work?
Simply put, fractional work is when an individual or firm is hired part-time or temporarily. A common example is consulting, where a company hires a consultant with specialized skills for a project or to maintain a long-term working relationship. Consultants that typically use a fractional model are HR, IT, marketing, and other services. For example, clients of uptreeHR get advice and expertise from an experienced team of HR professionals without the cost of hiring us full-time.
Flexibility
The biggest benefit of fractional work is the flexibility it gives companies. Demands and priorities change rapidly. Fractional work allows organizations to access specialized skills when needed, without the long-term commitment or overhead costs associated with full-time employment.
Similarly, for individuals, fractional work offers the autonomy to choose when, where, and how much they work. If appealing, fractional work empowers people to design their schedule, take on multiple clients, and explore opportunities across industries and geographies.
New perspective
A fractional worker or firm will have fresh eyes and a different perspective, generating new ideas to enhance problem-solving, decision-making, and innovation.
Cost effective
For companies, hiring fractional talent can be more cost-effective than maintaining a full-time employee, especially for projects, seasonal fluctuations, or when there is not enough work for a full-time employee. Fractional work allows companies to allocate resources more effectively, reducing overhead costs such as office space and benefits.
Many people choose fractional work to supplement their primary income, transition into retirement, or for autonomy and work-life balance. Coralyn Fraser started fractional work in recruitment and career coaching after being laid off during the pandemic. “Fractional work gives me more stability and control of my livelihood by giving me multiple income streams,” she says.
Challenges and criticism
Despite many benefits, fractional work can have its challenges too. For employers, managing a fractional worker could be challenging if they do not have effective communication and coordination. For individuals, venturing into self-employment can be daunting.
The main criticism of fractional work is corporations using this model in an exploitative way to pay low wages and avoid employment costs. In 2020, Statistics Canada reported that 10% of Canadian workers are gig workers and there is increasing pressure to develop greater protections for them.
The trend towards fractional work requires a shift in thinking about work and resource allocation. Offering flexibility, innovation, and cost savings, fractional work benefits both companies and workers. As this trend continues to evolve, organizations and individuals should consider adapting to the changing landscape of work and reimagining traditional employment.
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