Businesses all have one goal when they start out – prove the business model works and win over customers. Once that’s done, the focus shifts to putting the systems in place that allow the business to enter its next stage of growth. The challenge is that taking that next step involves evolving their practices and ways of working beyond where they’re currently at.
Doing this well requires senior expertise, but many SMEs simply can’t justify the price tag that comes with it. Labour costs have crept up alongside the cost of doing business, so finding room in the budget for senior talent is harder than ever. Fractional working is the antidote to these problems.
What we mean by fractional working
Let’s start with a simple definition. Fractional working is where individuals or teams work with a business on a part-time, contractual basis. The fractional part simply means you’re buying a portion of their time and the outcomes that come with it.
Fractional leaders differ from consultants in that they don’t just offer advice. Their work can range from strategy and advisory services right through to hands-on execution – engaging with customers, managing teams and delivering products or services.
The benefits of fractional working for SMEs
We’ve already pointed out that budget constraints are the usual barrier to acquiring top talent. The fractional model is particularly attractive to SMEs as it provides them with access to senior-level expertise without the overheads of a permanent employee. According to Marks Sattin’s 2025 white paper The Rise of Fractional Working in the UK and Ireland, companies report seeing 40-60% reductions in labour costs by using fractional leaders compared to full-time hires.
Fractional engagements are flexible by design and allow hours to be scaled up or down according to the needs of the business, making them ideal for SMEs with a laundry list of priorities. Fractionals also tend to onboard quickly, offer an unbiased perspective and are fast to deliver measurable results.
How it works in practice
Engagements usually run on a retainer basis, although day-rate and project-based arrangements are common too. Retainers typically consist of 10-20 hours a week for execution-focused work, whilst advisory-only engagements tend to require fewer hours. Fractional leaders are often working with multiple clients at once, managing their own time but always honouring their commitments to each one. For this reason, they shouldn’t be considered as employees and instead as trusted partners who share your goals, ambitions and challenges whilst remaining independent.
Common fractional roles span finance, HR, technology and operations, each bringing leadership and execution ability to their areas. COOs and operations leaders sit somewhere in the middle, as they focus on optimising delivery and back-office processes which can often extend across multiple teams.
What’s in it for the fractional
It’s worth understanding the other side of the arrangement too. Fractionals choose this career path in return for the promise of challenging work with good clients. They value autonomy and flexibility over their schedule whilst ensuring their skills are being applied in the most impactful way possible. In turn, the variety of experience and skills gained from these engagements allows them to refine best practice and put it to work for their clients.
Is the fractional model right for every business?
Fractional working is an incredibly powerful model for SMEs looking to get bang for their buck, but it isn’t a fit for everyone. It suits businesses best when:
- They’re growing and have ambitious goals
- Funding has just been obtained
- A specific skillset is in demand that isn’t in-house
- The founder wants to step back from the day-to-day running of the business
- Budgets don’t allow for a full-time leader
For SMEs that need someone embedded full-time or constantly available, instead opt for permanent hires or outsourced contracting work. Remember that fractional leaders are there to work alongside founders and constructively challenge them, so it’s about establishing a personality match as much as a skills fit. Founders should aim to bring in someone that complements their leadership style rather than simply mirroring it.
A shift worth making
Over the past several years, the technology available to us has adapted to more agile ways of working but our people practices haven’t caught up. Fractional working is part of a broader shift towards flexible, outcome-based work – one where SMEs have access to the same calibre of talent as the industry leaders.
By Jordan Lopez, Director of Workflow Sprint which provides operations leadership to service-led businesses.
