The Rise of Fractional HR - And How Coaches Fit Into The Strategy

In today’s rapidly evolving business environment, particularly in the world of startups and small to medium-sized enterprises (SMEs), the need for strategic HR expertise is more pressing than ever. Yet, many of these companies may not have the resources or the demand for a full-time Chief People Officer (CPO), HR Directors and even an HR Business Partner. Enter the concept of fractional HR, a growing trend where companies hire HR professionals on a part-time or project-based basis to provide the high-level guidance they need without the commitment of a full-time hire.

Fractional HR involves bringing in experienced HR professionals who work with multiple companies simultaneously, offering them flexibility, cost savings, and access to senior-level expertise. For startups and SMEs, this model allows them to tap into the wealth of knowledge and strategic insight of a seasoned HR leader, tailored to their specific needs and budget. It’s a smart, agile solution that bridges the gap between having no HR leadership and employing a full-time executive.

But why has fractional HR become so popular? The rise of fractional HR is largely driven by the increasing demand for specialised expertise that can be scaled up or down as required. Start-ups and scale-ups, in particular, often experience rapid growth spurts and need HR support that can evolve alongside their business. SMEs may also face similar challenges, where the demands on HR fluctuate depending on the phase of the business. Fractional HR provides these companies with the flexibility to adjust to changing needs without overcommitting financially.

“Start-ups and scale-ups have very different needs in different stages of their development and it would be unrealistic to think that one person should be able to cater to all these needs. The HR hired when the company was 10-25 employees strong, may not have the experience and capacity to support a company when the company grows to 50+ employees. 

I’ve always proposed this question – “Would you have some HR rather than none at all?” Fractional, on-demand HRs fill in the workforce support demands when hiring full-time HRs may not be possible.

Agencies have always been hiring freelance copywriters, designers and other specialists to support the delivery of projects without full-time headcount-related overheads so why not engage freelance HRs to deliver projects as well!”

Dianne Hummal, Founder & HR Consultant at The Channel, a global HR transformation consultancy arm of Cogs Group.

For businesses, this fractional approach to HR leadership offers a powerful combination of strategic vision, agility, and cost efficiency. Fractional HR professionals can focus on crucial tasks such as talent management, leadership development, culture-building, and compliance, all without the burden of a full-time salary. Additionally, they bring a fresh perspective from working with multiple clients across various industries, offering innovative solutions and best practices.

Here’s a great model of fractional HR leadership from Hacking HR: https://hackinghrlab.io/blogs/-fractional-hr-resource-management-guide/ 

How Coaches Fit Into Fractional HR Strategy

While fractional HR professionals provide essential people leadership and management, coaches can play a crucial complementary role in supporting business capability. Coaches can work in collaboration with fractional CPOs to help build leadership resilience, enhance team dynamics, and foster a culture of continuous development.

For example, as fractional HR leaders focus on strategic initiatives such as recruitment, retention, and organisational development, coaches can work directly with key leaders or teams to strengthen interpersonal skills, improve emotional intelligence, and navigate the complexities of change management. Coaches can also provide on-demand support for emerging leaders who may need guidance as they step into new roles, helping them grow into effective and confident leaders.

“When building profitable talent-centric organisations, it’s important to manage the client’s expectations – shaping a workforce that is aligned with the company’s vision, business targets and ways of working doesn’t happen overnight. 

Every workforce is a culmination of people with unique experiences, behaviours and mindsets that have been shaped by the environments they come from. In order to propel the workforce through business growth, transitions and transformations, it’s important to elevate the individual’s growth, transitions and transformations at the same time to ensure that everyone moves in the same direction. 

When I work with Founders and C-Suite, I always bring in coaches and/or coaching principles and practices to help lock in shifts for the benefit of the business and employees. Working with BOLDLY has expanded our network of experienced coaches who are accustomed to supporting business transformations in different cultural contexts.”

Dianne Hummal, Founder & HR Consultant at The Channel, a global HR transformation consultancy arm of Cogs Group.

Moreover, the partnership between coaches and fractional HR leaders can help ensure that HR strategies are implemented effectively. Coaches can reinforce HR initiatives through one-to-one sessions, group coaching, and workshops, ensuring that leaders are not only aware of the strategic direction but are also equipped with the skills and mindset to execute it.

Creating Synergy for Growth

When fractional HR professionals and coaches work together, they create a powerful synergy that benefits the entire organisation. Fractional CHRO, HR Directors and HR Business Partners can set the strategy, ensuring that the company’s HR efforts are aligned with its overall business goals. Meanwhile, coaches provide the individualised support that leaders and employees need to thrive within this framework.

This collaborative approach not only helps businesses scale efficiently but also builds long-term capability, ensuring that leaders and teams are empowered to continue driving success even after the fractional HR engagement ends. By integrating coaching into the fractional HR model, startups and SMEs can create a holistic, people-focused strategy that supports growth, innovation, and a positive workplace culture.

In summary, fractional HR is on the rise because it offers a flexible, cost-effective solution to the growing need for strategic HR leadership, particularly in startup and SME organisations. When paired with the tailored support of a coach, businesses can not only meet their immediate HR needs but also build lasting capabilities that will support their future growth. Coaches are essential partners in this dynamic, helping businesses navigate challenges, develop leaders, and cultivate a thriving workplace culture.

If you're interested in learning more about how BOLDLY can help your organisation, we invite you to explore our website or write to us at connect@boldly.app.

About the Author:

Alexandra Lamb is an accomplished organisational development practitioner, with experience across APAC, North America, and MENA. With 20+ years in professional practice, conglomerates, and startups, she has collaborated with rapid-growth companies and industry innovators to develop leaders and high-performance teams. She is particularly experienced in talent strategy as a driver for business growth. Drawing from her experience in the fields of talent management, psychology, coaching, product development, and human-centred design, Alex prides herself on using commercial acumen to design talent solutions with true impact.