Cloud revolutionized IT. Airbnb turned the hospitality industry upside down. Now fractional hiring is revamping the c-suite. And why not? With 40% of the workforce moving to freelance at all levels of the corporate ladder, the ability to hire critical skillsets on-demand is a strategic boon to businesses that need fast results without long-term commitment. What are fractional executives and where are they coming from? Contract hiring is nothing new in the skilled workforce. Interim executives have been around too, but typically as stop-gap solutions. Now they’re on the verge of becoming a persistent corporate strategy. In a national study of the gig economy, nearly all of the surveyed companies (93%) said they relied on freelance workers, forming blended projects teams with a mix of both contract and traditional employees. When the mid-level freelancers were asked why they chose contract work over traditional employment, more than 70% of them said they’re in it for the flexibility and freedom it gives them. Fractional executives, on the other hand, seek the thrill of results. They contract with multiple companies for varied lengths of time, and sometimes even in parallel, to solve problems and drive change within an organization. They come from VP and c-level roles in marketing, finance and sales. They are leaders in their industries and bring skill-sets to the executive team at a fraction of the cost – without benefits, severance and all those other strings attached. They do it because they prefer leading rapid advancement, change and turnarounds rather than long, slow growth. Who better to take the lead in moving forward critical initiatives, joint ventures and startups?
4 signs fractional executives may be in your company’s future Could a fractional manager fill a chair in your company’s c-suite? If any of these descriptions fit your organization, then the answer could be yes:
Big ideas. Small budget. Thanks to Airbnb, we don’t have to buy beachfront property to enjoy a week at the shore. Same goes for startup businesses and joint ventures: they don’t have to buy the whole CMO to get the marketing leadership they need. (For more details, read our blog, “5 Ways Startups are Crushing it with fractional CMO’s”.) Strategic use of interim leadership will stretch investment funds plus allow access to highly experienced industry leaders whose salaries would otherwise be out of reach.
Corporate cost cutting is a necessity. Chief officers and VP level salaries keep growing, and so do the benefits. Last year, stats from the Economic Policy Institute showed that CEOs earned 271 times the pay of the average worker. When the belt needs to be cinched, the biggest impact will come from higher notches within the company.
Gaps in expertise must be filled, and soon. Even record profits can’t always ward off layoffs. Not to mention short- or long-term absences, including military and family leaves. An interim or fractional executive is going to step up quickly to fill those gaps in expertise on an as-needed basis, without the expectation of job security.
Stalled projects or under-performing teams need a fresh perspective. Fractional executives bring new insights, ideas and feedback without internal bias. And since they only have a limited time to deliver, you can bet they’re going to push those projects forward with all oars in the water!
How will fractional, on-demand hiring impact the way your company fills its executive chairs in 2018 and beyond? We live in an on-demand world, and those expectations are beginning to carry over into high-level hiring decisions. For more, read the Insight Brief, “Virtual Resources for a Virtual Economy”.
About Laurel Bay Laurel Bay Marketing is a fractional CMO agency for tech, run by a tech. Our mission is to help service providers of all sizes increase revenues and strengthen their market, product and sales presence. Because we are technology experts in the services industry and because we have years of marketing senior leadership under our belts, Laurel Bay Marketing offers the winning one-two punch that can help you quickly and expertly achieve greater visibility with a differentiated portfolio and market positioning, generate revenue with clutter-busting lead generation, and provide a return on your investment. Laurel Bay was purpose-built for service providers just like you.. Contact us at http://www.laurelbay.marketing today or call 720.480.3653 for a quote.