Fractional Human Resources allows companies to outsource their HR responsibilities to a third party instead of using an internal department. This can help manage expenses and overhead costs. It's great for startups and small businesses and can help them set up for long-term success.
What is Fractional Human Resources?
Fractional Human Resources is often called "part-time HR, outsourced HR, or interim HR. The term “fractional” implies that you are getting all the benefits of a regular head of HR or team tailored to the needs of a small to a medium-sized organization". https://www.linkedin.com/pulse/what-fractional-hr-dan-gauthier/
How does it help manage expenses?
Fractional HR helps manage expenses because full-time staffing can add up, especially if they aren't consistently used. Having a fractional HR allows for their services to be used and paid for accordingly. Having fractional HR allows for your business to pay for a fraction of the cost as opposed to having an internal team.
What are the potential benefits for small businesses?
Flexibility is a key component to hiring a fractional HR service, the services you may need may not be required 24/7. By hiring a fractional HR service they give you the flexibility to use their services when necessary.
Outsourcing Human Resources services allow for much more flexibility within your company in multiple aspects. Hiring a fractional HR service may "help save you time and money and can take the worry out of certain areas of compliance. You can choose to outsource some or all day-to-day administrative duties across HR, talent management, payroll, benefits, and more." https://www.adp.com/what-we-offer/hr-outsourcing-and-peo/hr-outsourcing.aspx