Imagine this: your thriving San Diego business is on the brink of your next growth phase. The problem? You lack the necessary resources to maintain momentum, efficiency, and quality of service. Companies risk staying competitive and capturing new business without the right personnel, expertise, and tools.

A vital component of a company’s success is its human capital management or human resources (HR) team, which touches everything from recruitment to company culture to compliance. An HR leader can make all the difference in scaling while managing these critical areas but the high cost of hiring a full-time executive may be out of your budget. A fractional managed human capital officer (aka HR officer) may be just what your business needs. Learn how to transform your business’s HR practices with sophistication and professionalism at a fraction of the price.

What is a Fractional Managed Human Capital Officer?

A fractional managed human capital officer is a third-party professional who provides HR expertise, direction, and leadership on a limited basis, either part-time or within a contracted time frame. A fractional HR officer allows companies to access high-level, impartial guidance at a cost comparable to hiring a temporary or part-time employee. This professional can help increase productivity and add value to the bottom line by streamlining current systems and adding necessary controls and compliance.

What is the Role of a Fractional HR Manager?

Fractional HR managers provide an outside viewpoint, specializing in handling and protecting sensitive HR matters with confidentiality and professionalism. A fractional HR manager typically works alongside department heads as an objective third party, providing recommendations for new and improved processes, controls, and accountability for HR operations. Some key responsibilities may include:

• Meeting with the HR/operations team to observe current processes and look for gaps
• Developing a complete SWOT analysis, presenting solutions, and coordinating recommended workflow changes with the HR department
• Ensuring written procedures and job descriptions align with company vision and state/federal laws and regulations
• Conducting audits and ensuring HR programs and services comply with established policies and procedures and state/federal laws and regulations
• Conducting management and team training/workshops related to specific HR programs
• Developing, revising, implementing, and advising on HR policies, procedures, and administration

What Are the Benefits of Fractional HR?

There are several strategic reasons a company may consider engaging a fractional HR professional, including:

Cost-Efficiency: Hiring, onboarding, and training an HR executive can be highly expensive, especially in an area like San Diego. By engaging a fractional HR manager, companies can leverage the expertise and experience of a seasoned professional who is ready to step into the role without incurring significant overhead or recruiting costs.

Specialized Knowledge: Similar to avoiding hiring challenges, a fractional HR professional can help businesses access specialized expertise and insights tailored to their industry, which they may not have in-house. For example, a fractional HR officer can help leaders navigate organizational changes and complex regulations and implement proactive measures to reduce risk and mitigate legal issues. A fractional HR officer also offers a strategic perspective, rather than a tactical one, for long-term planning, growth, and other goals.

Flexibility: Engaging a fractional professional gives businesses more control over their resource management, choosing the optimal time for services based on their needs, such as if companies are experiencing a merger, leadership turnover, or a specific project that could use high-level HR expertise.

Efficiency: A fractional HR leader can bring best practices and time-tested systems to help  businesses improve their overall HR functions. Streamlined operations and consistency help companies scale, manage employees, and perform other tasks more easily.

Recruitment and Retention: A fractional HR officer is valuable in creating campaigns and strategies to attract and retain top talent. Efforts may include developing competitive compensation packages, implementing performance metrics, and providing career paths and learning opportunities.

What’s the Difference Between Fractional HR and Outsourced HR?

It’s easy to confuse fractional and outsourced HR, so let’s clarify. Fractional HR involves strategy and planning, while outsourcing is tactical execution. Understanding the difference can help your business decide which approach — high-level strategic guidance or daily task management — best suits your needs.

A fractional HR professional acts as a strategic partner, working closely with your leadership team to provide strategic insights, align business goals, and implement streamlined operations and systems that build a foundation to promote efficiency and support scalability.

Outsourcing HR involves delegating day-to-day HR tasks, such as processing payroll, onboarding, and benefits administration, to a third-party provider. It ensures processes run smoothly with less strategic decision-making and involvement.

Why are Fractional and Outsourced Services Gaining Popularity?

There are many reasons fractional and outsourced services are gaining popularity as an alternative to traditional employment.

Cost Savings: As we’ve mentioned, the primary reason is likely the cost savings combined with access to expertise, which enable businesses to manage resources effectively while operating with sophistication, quality, and professionalism. This is especially ideal for smaller companies with limited resources, allowing them to gain insights from a seasoned professional while only paying for the time and services they need.

No Training Required: Fractional and outsourcing eliminate the need for businesses to spend time and resources recruiting and training. With professionals already trained and experienced, companies can pivot and fill gaps quickly to address rapid growth, an urgent need, or change.

Flexibility: Things can change quickly, so agility and adapting to evolving circumstances are crucial. Outsourcing and fractional services help businesses scale up or down based on their needs or specific situations without tying up resources in overhead and other costs associated with hiring full-time employees.

Is your team overwhelmed managing day-to-day HR tasks, leaving little room for strategic planning? We encourage you to consider engaging a fractional managed human capital officer. Learn more about this cost-effective solution and how partnering with a fractional HR professional can help optimize your HR functions without a long-term commitment.