“Fractional Executives” are the way of the Talent Acquisition future! We believe they have the potential to revolutionise how businesses, especially startups, build and engage their workforce.
The past month has been marked by a series of layoffs, starting with Stripe’s layoff of 1,000 employees, followed by Meta’s dismissal of 11,000 staff members. With Goldman CEO David Solomon predicting an imminent recession, Jeff Bezos advising caution, and companies like Roku, Cisco, and Asana conducting significant workforce reductions, it is no surprise that 23% of hiring leaders anticipate layoffs within their organizations in the next year.
There has been a noticeable shift in the tech industry, with heightened anxiety prevailing.
Founders have valid concerns about slower growth, rising interest rates, and reduced consumer spending. Combined with a volatile fundraising market, these factors have prompted startup founders to exercise greater caution when planning their 2023 headcounts.
However, these founders face a dilemma: they still need to develop high-growth products to achieve their goals and secure the next round of funding.
Quietly, many prominent founders have found a solution by bringing in the necessary talent to expedite product development while simultaneously reducing costs. The secret lies in embracing fractional employees instead of traditional full-time hiring.
What are fractional executives?
Fractional executives represent the next stage in the popular fractional hiring trend that has emerged in recent years. Fractional hiring involves bringing in part-time talent to fulfill crucial roles and infuse organizations with expertise. It taps into the skills of highly proficient independent workers who allocate their time across multiple projects.
Rather than hiring individual employees, founders can now assemble entire teams and flexibly adjust their working hours based on the stage of product development. For example, during the prototyping stage, additional product design hours may be required, while the execution stage necessitates more engineering resources.
During the Great Resignation, workers sought higher salaries and more flexible work arrangements. Hiring managers have reported a significant increase in staff turnover since the onset of the pandemic. Fractional hiring has provided a solution that benefits both workers and companies, as highly skilled professionals exit large tech firms.
By employing fractional employees, founders can extend their runway by simultaneously hiring for multiple roles, without the long-term commitment associated with full-time employment. This fundamentally alters the way we approach company building.
The effectiveness of fractional executives
Traditional hiring models often result in wasted return on investment (ROI) when teams remain idle between projects. The cost implications in terms of time, money, and growth can be significant. Fractional executives, on the other hand, offer access to high-quality talent at a fraction of the cost of traditional full-time hiring, thanks to the ability to scale resources according to each stage of product development. Founders who have adopted fractional employees have achieved three times the cost savings compared to traditional hiring methods.
Vetted and exceptional candidates
HomecomingEx has a vetted database of over 1,000 exceptional candidates. If you’re looking for a fractional executive, or would like more information before making any decisions, please reach out on firstname.lastname@example.org.