Understanding the Role of a Fractional CHRO: What Small Businesses Need to Know
Small businesses face many of the same people challenges larger companies do - employee turnover, competition for top talent, workplace conflicts, and people management inefficiencies.
But, without the corporate budgets, they have less capacity to employ an internal HR leader to manage teams, systems and culture.
A Fractional CHRO (or a Part-time Chief HR Officer) provides a dedicated senior HR professional who becomes an extension of your leadership team, working with you consistently to build and lead the HR/People functions in a part-time capacity to help grow a successful business.
You get a fraction of their time and expertise, tailored to your business needs and values, gaining access to strategic HR leadership at a fraction of what it would cost to hire a full-time HR Leader. It can cost up to 75% less to work with a Fractional CHRO than to hire a full time HR Leader (Source: Blend Me, Fractional HR).
At a fraction of the cost, Fractional CHRO is a smart choice for small businesses to benefit from the specialized HR expertise and knowledge that’s otherwise unavailable.
They function similarly to a full-time HR leader in a company, establishing effective HR foundations for growth, developing both short-term and long-term strategies, and integrating seamlessly into your team.
Their focus is generally twofold: managing the day-to-day HR/People issues that inevitably arise, while simultaneously building the HR foundation of your People strategies and processes. They understand your culture and business goals, developing streamlined HR processes for everything from hiring and onboarding to performance reviews and terminations.
With Fractional engagements, below are 4 ways they can improve the overall performance of your company and build a workplace where people thrive.
They Resolve Common HR Problems That Affect Performance
Companies engage Fractional HR services when they face employee-related challenges that are impacting performance.
Competing for qualified candidates on the hiring market, high employee turnover, and inefficient people management systems prevent companies from advancing their priorities.
Part-time Chief HR Officers can be brought into the team to implement effective and efficient hiring practices, retention strategies, and total compensation programs to bring the workforce back into alignment.
They Help The Company Adapt to Changing Needs
CHROs maintain agile HR processes that can easily adapt to the changing needs of the workforce and the goals of the organization.
They stay up to date on regional laws and regulations impacting the industry, new opportunities for supporting employee growth, and other beneficial HR trends.
With this strategic partnership, small companies can stay forward focused and continue implementing new and adaptive strategies into their business to scale confidently.
They Bring Fresh Perspectives For Problem Solving
Part-time Chief HR Officers work with business leaders to discuss, navigate, and resolve HR problems.
They offer an objective lens to think about the challenges and offer their knowledge and experience to explore new ways to solve problems.
They are a sounding board to understand, ideate, and implement strategies that will support organizational effectiveness.
They help develop opportunities for the company to grow strategically.
They Improve Employee Performance
CHROs develop efficient performance management systems and processes to build successful businesses with high-performing people. They implement structures that build strong, resilient teams.
They develop total compensation and benefit packages, incentives, and growth opportunities to keep employees engaged and motivated.
They address employee engagement and health & safety so they can function effectively and stay in alignment with overall business goals.
Wondering whether a Fractional CHRO will be a good fit for your team?
Book a free consultation today with Nabila Rezwan to learn more.
Nabila Rezwan
Certified HR Leader (CHRL) with over 10 years of experience.
As a fractional Chief HR Officer at Ask HumanResources Consulting, I work with startups and early-stage companies to build and scale their HR functions for a fraction of what it would cost to hire a full-time HR Executive. As your fractional Chief HR Officer, I become an extension of your Leadership team, driving business success with strategic HR leadership on a flexible, part-time basis.
