Fractional work
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Fractional work, also known as fractional employment, fractional professionals or fractional executives, refers to a work arrangement where an individual provides specialized skills or (management) services to multiple organizations on a part-time or project basis.[1] This work model has gained popularity in recent years due to the increasing demand for flexible and cost-effective solutions for businesses to access specific expertise.[2] As the pandemic drove the popularity of remote work, a larger percentage of workers have been able to take on fractional work in addition to full-time employment.[3] This has in turn resulted in the establishment of businesses specializing in providing fractional employees.[4][5]
Difference between fractional work, part-time and contractor work
Part-time employment or a part-time job typically involves working fewer hours than a full-time employee, usually less than 35 hours per week. Part-time employees are usually entitled to receive some of the same benefits as full-time employees, such as holiday pay, sick pay and pro-rata pension scheme. However, they may not receive all the same benefits as full-time employees and may not have the same job security.[6]
Working as a contractor involves working on a short-term basis for a specific project or service, often as an independent contractor or freelancer. Contractors are usually paid on a project basis or hourly rate and are responsible for paying their own taxes and expenses. Contractors typically work on a project basis and have more control over their schedule and work arrangements.
Fractional work[7] is a newer term that refers to working either part-time or full-time, but not in a traditional job with a single employer. Instead, fractional workers work for multiple clients or employers, usually remotely, and may offer specialized expertise. Fractional work can be project-based or ongoing, and may involve a higher level of autonomy and flexibility than traditional part-time employment.
Types of fractional workers
Fractional executives are experienced professionals who hold executive roles (CxO), such as CEO, CFO, CMO, CIO, or COO, in multiple organizations simultaneously. They offer strategic guidance and management expertise to companies that may not require or cannot afford a full-time executive. The common factor is that these CxO professionals have held these positions before at other start-up, scale-up or corporate companies before.
Fractional professionals are experts in specific fields, such as finance, marketing,[8] human resources, or information technology, who provide their specialized skills and services to multiple clients. They typically work on a contract or project basis and can be found across various industries.
Fractional freelancers are self-employed individuals (self-employment) who offer their skills and expertise in specific areas on a per-project basis. They usually have a diverse clientele, which may include businesses, non-profit organizations, or even individuals.
Marketplaces and platforms
Although Fractional work, workers, professionals and executives are a relatively emerging development and trend, there are some notable marketplace and platform examples. In 2022, US-focused product specialist marketplace A-team announced that it had raised $55 million in funding[9] from a group of investors. Atlanta-based Fraction, which focuses on US-based fractional software talent, announced that it had crossed $2M in revenue in early 2023, less than a year after its founding.[10]
In 2023 European-focused fractional professional platform 10x began operations.[11][12] Other marketplaces in the fractional professional and executive workspace include $12m funded Continuum [13] and Shiny.
Fractional Work Developments
Remote work and digital collaboration tools will likely continue to facilitate the growth and acceptance of fractional work arrangements.[14] There are several indications of the market size with one source claiming it is over +$500b.[15] 60% of executives believe fractional work is seen as the best way to organise businesses to add value for employees and organisations and this percentage is expected to grow.[16] After the gig-economy has reached the professional level, it has recently also reached the board-room with fractional CxOs.[17]
See also
References
- ^ "Fractional employment definition, Law Insider".
- ^ "What is Fractional Hiring, US Chamber of Commerce". 13 October 2021.
- ^ "How many remote workers have two jobs?". www.hcamag.com. Retrieved 2023-08-23.
- ^ Travers, Kevin (2023-04-08). "How ChatGPT is changing the job hiring process, from the HR department to coders". CNBC. Retrieved 2023-08-23.
- ^ "US-based Senior Dev Talent - Fractional Developers". hirefraction.com. Retrieved 2023-08-23.
- ^ "The Difference Between Contract, Part-time and Full-time workers, US Chamber of Commerce". 24 August 2021.
- ^ "An Introduction to Fractional Hiring". 22 March 2021.
- ^ "Fractional Marketing - What is it and why should you care".
- ^ "Future of Work Korn Ferry". 17 May 2022.
- ^ "Fraction Rides ChatGPT Wave and Hits $2 Million ARR". Yahoo Finance. 2023-04-21. Retrieved 2023-08-23.
- ^ "Kluseconomie dringt door tot bestuurskamer". 15 May 2023.
- ^ "Vergeet die c-level vacature: huur freelance een topbestuurder in voor je management". 2 June 2023.
- ^ "Forbes: Continuum Raises $12M to Build The Fractional Executive Marketplace". Forbes.
- ^ "What is the gig economy and what's the deal for gig workers".
- ^ "The Global Gig Economy: Capitalizing on a $500B Opportunity".
- ^ "The skills-based organization: A new operating model for work and the workforce".
- ^ "Kluseconomie dringt door tot bestuurskamer".