Examples of fractional positions include chief financial officer, chief marketing officer, chief operating officer and chief technology officer - all executive-type roles that require specific skills, knowledge and expertise.Portra/iStockPhoto / Getty Images
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Jonathan Yapp has founded and run a few tech companies during his 20-plus-year career, but today, instead of focusing on one company, he divides his time between two or three startups at a time, for about eight to 20 hours a week each.
“There are a lot of us founders who are at the mid-to-later stages in our careers who enjoy helping out different companies,” says Mr. Yapp, 48, who is based in Vancouver.
Mr. Yapp is what’s known as a fractional executive, a term being used more frequently in the postpandemic era to describe professionals who work a fraction of the time compared to a full-time role, often dividing their working hours between multiple companies.
These arrangements are similar to freelance or consulting, but they tend to be workers with high-level, strategic roles embedded in a company for a fixed number of hours per week or month.
The shift is driven by the normalization of remote work and the growing number of seasoned professionals seeking more variety and flexibility in their schedules. Fractional work is also advantageous for cash-strapped startups and small- and medium-sized businesses looking to tap top talent without the full-time price tag.
Examples of fractional positions include chief financial officer (CFO), chief marketing officer (CMO), chief operating officer (COO) and chief technology officer (CTO) – all executive-type roles that require specific skills, knowledge and expertise.
In a recent Harvard Business Review article, authors Tomoko Yokoi and Amy Bonsall did a LinkedIn search that found more than 110,000 individuals worldwide with English language profiles identified as fractional leaders as of early 2024, compared to 2,000 in 2022.
Cal Jungwirth, an Edmonton-based director of permanent placement services at recruiting firm Robert Half, says he’s seen a “huge upswing” in fractional employment. He’s gone from discussing fractional work with a couple of professionals over each year to two or more a month over the past couple of years.
Mr. Jungwirth says people seeking fractional employment are usually mid-to-late-stage career professionals. Some, but not all, are looking for fewer hours and a change of pace.
“They get to manage their time a little bit more and stay mentally engaged doing the kind of work that they’re used to, without the commitment and stress that might come with a full-time role,” he says. “These workers have the skill set and horsepower these organizations need – and it comes at a more palatable cost to the organization.”
Good for executives and companies
Mr. Yapp has been a fractional CTO on and off for the past eight years but only began using the term last year as it gained traction in the tech sector. He says there are benefits for executives and clients.
“For me personally, fractional allows me the flexibility to consider new startup opportunities. For the client, they can get help quickly and adjust the engagement to match their needs and budget over time,” says Mr. Yapp, who was the founder and chief executive officer of a web development agency in Vancouver for 12 years and developed high-profile video games at Microsoft Corp.
“And it’s nice to be able to help the next generation of founders.”
Mr. Yapp has gone full-time with a couple of startups in the last five years and will probably do it again in future.
It’s not easier to work as a fractional executive, he says, just different – which is the point.
“I don’t think fractional necessarily means less stress; it depends on who and what you get involved with, but certainly, you have more control over it,” he says.
Fractional networking
Alongside the rise in fractional jobs are communities and marketplaces such as Fractional United and Continuum, both based in the United States, that connect seasoned executives with organizations needing their part-time services.
B.C.-based entrepreneur Peter Elkins recently founded Fractional Executives Worldwide, a matchmaking service for companies and fractional executives, after coming across a growing number of professionals worldwide looking for meaningful part-time work.
“We have a lot of business people who are consultants in the country, but we’re not engaging them,” says Mr. Elkins, a Hornby Island-based fractional chief entrepreneur who works for startups and on executive teams and boards.
While most fractional roles are in startups and small businesses, Mr. Elkins believes it could also be a “game changer” in the public service. Instead of hiring traditional management consulting firms, he said governments could hire top-tier expertise “at a fraction of the cost,” which would, in turn, save taxpayer money. He says companies planning a restructuring could benefit from fractional executives to help keep costs down.
More committed than a freelancer
Laura Byspalko positioned herself as a “fractional” executive a couple of months ago, even though she’s been working in this type of role at different periods throughout her career.
“I think I started doing fractional before I knew it was a thing,” says Ms. Byspalko, 44, a fractional COO in Vancouver. “It’s essentially being part of a leadership team in an organization, but without doing the full-time hours.”
She says fractional work is more of a commitment than freelancing.
“With fractional, you’re a core member of the team and can really help shape direction,” says Ms. Byspalko, who founded and was managing director of a non-profit organization for 12 years.
She enjoys using her experience to help the next generation of company founders and leaders.
“After being the captain of a ship, it’s nice to step away and support other people now on that journey,” she says.
While she likes the arrangement, Ms. Byspalko warns that fractional work can be challenging.
“I enjoy dipping into different situations, supporting multiple organizations or entrepreneurs, but it’s not for everyone,” she says. “There’s a lot of business development required and you have to be good with time management and systems. Resource allocation has to be your specialty.”