Inspiration

Fractional HR: Flexible, embedded support for small teams

By Charlotte Carnehl

Smaller companies face big people challenges. Even with a great product and strong leadership, growing or retaining your current team and building a strong company culture isn’t easy – especially when you don’t yet have the resources or need for a full-time HR lead or HR department.

Hiring gets urgent. Onboarding needs structure. Feedback loops are fuzzy. Founders start spending more and more time on people topics – either doing it half-heartedly or at the expense of strategy.

The good news? There’s a middle ground between hiring a full-time in-house HR lead and outsourcing selected people tasks to an external provider. It’s called fractional HR. Fractional HR is a flexible, embedded and smart way to get the support and expertise you need, when you need it.

In this post, we’ll walk you through what fractional HR is (and isn’t), its key benefits and limitations and how to get started.

What is fractional HR – and what is it not?

Fractional HR means bringing in an HR professional to work with your team on a part-time, ongoing basis. They’re embedded in your organisation, not just executing tasks from the outside. Think of it as having an HR lead who works 1–3 days per week, deeply integrated into your people strategy and culture.

Fractional HR, outsourced HR, interim HR: What’s the difference?

Fractional HR is different from outsourced or interim HR services. Here’s a small overview:

Fractional HR isn't just "outsourced human resources”. It's strategic HR expertise and support that feels in-house, delivered at the scale and rhythm your business needs.

It can take many shapes:

  • A generalist fractional people lead combining hands-on support and strategic development
  • A fractional talent partner focused on hiring
  • A seasoned HR advisor with a focus on supporting founders and coaching new managers

Why organisations choose fractional HR: Benefits & limitations

More and more companies are discovering that fractional HR isn’t just a cost-saving option; it comes with strategic advantages:

What makes fractional HR work so well

One of the most powerful aspects of fractional HR is how seamlessly it integrates into your team. From the very first day, a fractional HR professional is embedded in your systems, culture and conversations – not just providing input from the sidelines. Unlike traditional human resources outsourcing services, they bring both strategic guidance and hands-on operational support to your organisation.

Fractional HR services are tailored to your needs in capacity and scope. Whether you need two days per week or something more flexible, fractional HR adapts to your requirements without long-term commitments. It's also more cost-effective than a full-time hire, especially for smaller organisations with evolving needs.

And perhaps most importantly, it’s built on trust and continuity. Your fractional HR partner gets to know your team, your culture and your leadership. This makes them a consistent, reliable source of support across the ups and downs of company life.

But fractional HR is not a fit for every situation

That said, fractional HR isn't for every team or every moment. Since the support is part-time by design, capacity is limited. Depending on your company’s challenges and size, you may need a full-time, dedicated HR team member.

Fractional HR also only works when leadership is truly willing to co-own people decisions. It’s not a plug-and-play solution for outsourcing problems. Instead, it requires a collaborative mindset and regular communication.

Finally, while fractional HR can be a long-term partner, it can also be a transitional solution. As your business matures, your HR needs might evolve to the point where building an internal team becomes the next step. Fractional HR can help you get there, but it may not be the forever fix.

When does fractional HR make sense?

Are you now asking yourself if a fractional HR solution could benefit your company? Here are some indicators that it might be the right time to bring in extra HR support:

  • Your leadership is spending too much time on people ops instead of their core roles and responsibilities.
  • Your organisation is growing and hiring (either now or in the future), but is not ready for a whole HR team.
  • You want to build your company and culture on solid people foundations, and want structure and HR processes without unnecessary bureaucracy.
  • You value flexibility, expertise and strategic input.
  • You're looking for someone who can feel like part of the team and can be a trusted point of contact for your team members.
  • You're open to co-owning people topics and bringing someone into your inner circle.

How to get started: Questions to ask yourself

If you answered many of the questions above with a “yes”, it might be a good idea to reach out to some fractional HR experts (like us 😉). The following questions can help you gain clarity on your specific needs and what sort of fractional HR expert might be best suited to support your business.

Scope & focus

  • What are your most pressing people-related challenges in the next 6–12 months?
  • Is your biggest need strategic (e.g. culture, leadership, talent management) or operational (e.g. hiring, onboarding)?

Capacity & rhythm

  • Would 1-3 days/week of embedded support free up leadership capacity meaningfully?
  • Can you offer the access needed for someone to be truly integrated?

Team fit

  • What values and working style would complement your team best?
  • Would your team benefit from a calm, external perspective?

Budget

  • What would a fractional HR setup cost vs. hiring full-time?
  • Could you test the waters with a smaller engagement first and potentially expand later?

Final thoughts: Building smarter with fractional HR

Fractional HR is a flexible, smart way to bring specific people expertise into your business – before you’re ready to hire full-time. It’s not outsourcing. It’s not temporary. It’s a partnership that scales with you, embeds into your culture and helps you manage all areas of HR with confidence.

Whether you’re onboarding your 10th hire or setting up your first manager feedback cycle, fractional HR helps you build smarter and lead better – without going it alone.

Could we be your game changer when it comes to putting your People practices on solid foundations?
💬 Let's find out in a free call with Julia.

April 22, 2025