Fractional executives \u2014 part-time, senior-level leaders who split their time among multiple organizations \u2014 have been employed in the tech startup world for years. Now charities and foundations are embracing the model to fill critical gaps in finance, technology, fundraising, marketing, and operations.<\/p>\n\n\n\n
The appeal is straightforward: Hiring a C-suite executive on a fractional basis enables you to bring on an experienced leader for a set number of hours a week, capping your organization\u2019s expenses. A full-time CFO or chief technology officer at a nonprofit can easily earn six figures in salary and benefits, but a fractional executive doing the same work on a limited schedule might cost a third of that or less.<\/p>\n\n\n\n
The popularity of this form of staffing reflects a trend that has grown in the sector over the past year, particularly among small and midsize groups that have long struggled to compete for top talent. Some nonprofits are hiring fractional decision-makers directly, but search firms that specialize in sourcing them have also started to emerge. <\/p>\n\n\n\n
“This is the future because of the way business is changing and the world is changing,” says Todd Krieger, co-leader of the social-impact practice at the Proper Group<\/a>, which places fractional executives at organizations. “We all figured out that we could work from home, and now this new phase is figuring out that you don’t need to hire a full-time employee necessarily to fill a particular role.”<\/p>\n\n\n\n The Chronicle<\/em> spoke to five leaders close to the trend to explore its benefits and drawbacks. Here are the lessons the early adopters have learned.<\/p>\n\n\n\n A fractional engagement gives smaller nonprofits access to strategic leadership they otherwise couldn’t swing.<\/p>\n\n\n\n “Small orgs can’t afford that CFO who has a lot of experience and comes at a six-figure salary price tag,” says Jon Hoffmann, director of Elevate NP of Southwestern Pennsylvania<\/a>, a group that works to strengthen Pittsburgh-area nonprofits. Even midsize and larger organizations find themselves competing with the for-profit sector for top talent, and a fractional arrangement can level the playing field, he says.<\/p>\n\n\n\n Not all executive positions can be filled on a part-time basis. Roles that require a long-term strategic vision or that oversee many employees \u2014 primarily chief operating officers and CEOs \u2014 can’t easily be done part time.<\/p>\n\n\n\n If you can tap into sophisticated talent, they probably can do [the work] within two or three days a week.<\/p>\n<\/blockquote>\n\n\n\n Fractional positions in technology, finance, and human resources are so far the most common, although more groups are looking for part-time executives in marketing and fundraising “if the workload isn’t too much,\u201d says Vincent Robinson, founder of the 360 Group<\/a>, an executive-search firm for nonprofits and foundations.<\/p>\n\n\n\n This type of work appeals to seasoned leaders who are approaching retirement, want more control over their time, or are looking to use their corporate-sector skills to help nonprofits solve thorny issues.<\/p>\n\n\n Part-time executives let nonprofits punch above their weight.<\/h2>\n\n\n\n
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