What is Fractional Work??

Welcome to The Shift, a weekly newsletter where I provide thought-provoking ideas to help you think differently about your career and money.

Last Week + This Week = It’s All Connected

Last week I talked about why our jobs are our primary pathway to wealth. Read here if you missed it. This week I explain what the heck fractional work is, along with its pros and cons. One pro is making more money…

Quick note: I love receiving articles, charts, images, memes, jokes, random thoughts that you think will help inform this newsletter. You are my inspiration and I’ll always give you a shout out if I use something you share!

As always, thank you for reading. ❤️ 

More Than Part-Time Work

Have you heard of fractional work?

I hadn’t. Until recently.

The term started popping up more and more on LinkedIn and in other random places.

I thought it was an odd term and passed it off as jargon for part-time work.

Then, I was a guest panelist on a call that made me realize how this type of work could be very beneficial for many experienced and skilled workers who don’t know about it.

On the call you could feel the energy shift when two other panelists talked about how a fractional Chief Marketing Officer role worked.

Antennas were raised, the possibility of a different type of work was intriguing, especially to those recently laid-off. (Thank you to reader Grace for inviting me to that call!)

That said, fractional work isn’t a band aid solution for workers having trouble landing a new gig. It is a viable medium to long-term solution for employment, and more.

The way I see it, fractional work is a new way to work that:

• Supports the growth of small businesses.

• Improves speed to market and funding options for small businesses.

• Allows for low-risk innovation in big corporations.

• Allows skilled and experienced employees to own their careers.

• Provides a solution to the ever-elusive work-life balance.

Most importantly, it is a new way to work that shifts the focus from hours to outcomes.

It seems fractional work isn't just a buzzword (see Google search trends below).

It's part of the evolution of employment.

The Basics

What follows is my interpretation of what this type of work is, what type of employees it suits, and its pros and cons.  

Let’s start with: Is "fractional" just a fancy term-for part-time?

The answer: Yes and No. It is part-time work with qualifications.

The one thing I noticed immediately with fractional work- it was almost always tied to C-suite roles.

• Fractional Chief Marketing Officers

• Fractional Chief Technology Officers

• Fractional Chief Financial Officers

• Fractional Chief Product Officers

• Ans so on

The C-suite focus means you’ve gotta be an experienced expert. (It's not entirely exclusive to the C-suite, the emphasis is on specialization / experience). Most people that take on these roles have at least 10 years of experience.

So is it consulting? Kinda, but not.

• Unlike consulting gigs, a fractional position is embedded in the organization.

• They are considered part of the team.

• It's not a one and done job / project.

It's like a senior level full-time role, but:

• Instead of working 40 hours / week.

• You work 10-20 hours / week.

• The hours are determined by the output needed.

These roles typically expect a person to commit for a medium-term time frame. Even as it’s typical to hold more than one fractional job at a time.

Pay is lower because of the reduced hours. Benefits aren’t part of the gig. Compensation is usually provided on a monthly retainer basis via 1099.

That covers the basics.

Finding A Fit

Fractional work is best suited for individuals that are seeking flexibility in their schedule.

Whether that is flexibility for free time, time to care for children or elders, time to work on your own start-up, or time to ease into retirement.

It’s also a way to make more money. When you take on more than one of these roles the totality can be greater than your prior full-time position.

This puts you in the driver’s seat of your career. At the same time, you may be switching/adding jobs a bit more frequently than in the past.

My take: I think this could also be a way for mid-managers who haven’t quite broken into the C-suite to get C-suite experience.  

Start-ups, smaller businesses and businesses in the tech space often offer these types of job opportunities.

Reason being, they often don’t have the budget to bring on a full-time, experienced leader. This way, they get the benefits of a C-suite leader without the cost.

My take: I think this could be a way for bigger companies to innovate and test new products or services – by hiring fractional leaders to oversee potential new revenue streams.

Embracing Fractional Work (incl. resources)

It’s clear why fractional work is on the rise.

It’s a type of work that could benefit many – as awareness builds.  

While there isn’t one authority on the topic, this website shares fractional jobs listings via email. It also offers a good step-by-step on how to get started with fractional work (from setting up and LLC to how much to charge).

At the end of the day, a fractional job is a type of independent work for experienced workers.

If that’s you, maybe this could be the future of work for you?

P.S. I’d be forever grateful if you’d share this with 1 other person who might enjoy it. 🙏

Let’s make The Shift!

Lindsey