Understanding and navigating the HR needs of your business can be challenging, especially for growing companies and new startups. There is a varied list of roles and responsibilities that a company’s HR team or a fractional HR person must be able to handle, from navigating complex, constantly-changing labor regulations to designing effective workplace policies to ensure employees are engaged, from handling conflicts and other workplace matters to managing a growing workforce as the company scales.
While some companies are fortunate to have a trained HR professional on board, many will have an untrained person thrust into the HR role and assigned tasks they have no experience doing. Plus, although many HR issues can be prevented with proper planning, not every problem can be foreseen. Many HR issues come out of nowhere, need to be dealt with immediately, and often require specific expertise and finesse. That’s why having an experienced HR professional on your side can be invaluable.
A fractional HR person can make a lot of sense for a growing company with limited capital. Today, we’re going to talk about why a fractional CHRO (Chief HR Officer) just makes sense for your company, and why some of the alternatives may not make as much sense.
Alternatives to a Fractional HR Person
The Concern with Hiring a Junior HR Employee
A few years ago, an employee was very sick with a rare disease. A few leaders treated him very badly and one even wanted to fire him for performance reasons. This situation had the potential to become a PR disaster, and handling it properly required carefully and strategically leveraging relationships and policies to bring about the right outcome. A junior HR person would have found this scenario extremely challenging and would have struggled to manage the intricate employee relations involved.
Unfortunately, these types of cases can come out of nowhere. A junior HR employee with limited experience, has little-to-no chance of successfully navigating a situation like this. On the other hand, a fractional HR person brings seasoned expertise without the high cost of a full-time hire. They can handle complex issues, offer strategic advice, and stand firm in delicate situations, ensuring that employee relations are managed professionally and empathetically. Additionally, bringing on a fractional HR person when needed means you don’t have to shoulder the upfront costs of training someone new to the field. You can tap their expertise as needed.
The Concern with Assigning HR Duties to an Existing Employee
In another past situation, a high-performing financial admin with a background in compliance was promoted into the role of CHRO. At the time, the company was dealing with complex compliance issues, so he was a natural choice for the promotion. However, it quickly became clear that the new CHRO focused solely on compliance issues and neglected all of the humanistic pieces of the role. Employee relations quickly began to devolve and the company lost a number of valuable employees.
While promoting from within can help strengthen company culture, in scenarios like this one, internal promotion may be more harmful than helpful. A fractional HR person can maintain a balanced focus on both the compliance and human relations facets of HR. An experienced professional can provide a holistic perspective that ensures all aspects of HR are managed effectively, without overwhelming or diverting existing employees from their core, well-suited responsibilities.
The Concern with Hiring a Seasoned Professional Full-Time
If your budget allows for it, a seasoned Chief HR Officer can be a valuable addition to an established team. However, many growing companies think they need a high-performing CHRO, when they really don’t. One such company we work with had originally hired an HR officer with over 30 years of industry experience. They ended up resigning after just six months because they didn’t have enough to do and felt like their talents were being squandered. Once we were brought on in their place, we didn’t disagree.
For most growing startups and small businesses, HR needs are often varied, but not always substantial. In many cases, these needs are better met with a fractional HR person, as opposed to a full-time CHRO. They provide the expertise of a seasoned professional without the full-time cost. They also bring flexibility for a scaling company with constantly changing needs, ensuring that HR issues are addressed efficiently and cost-effectively.
The Concern with Using Google or ChatGPT to “Figure It Out”
If you ask Google or ChatGPT “What does a start-up need to do for HR?”, you’ll find strategies likely compiled by interns across the internet. Opting for the DIY route means that the first HR rabbit hole you go down will dictate the direction of your entire HR strategy.
We tested this theory, and ChatGPT confidently told us that HR software, creating attractive benefits packages for new employees, designing effective exit interviews, an HR Handbook, and being FMLA compliant are all priorities for a growing company.
Not only are each of these very time-consuming projects, but they can be incredibly expensive to do. Oh, and we almost forgot to mention that they are completely unnecessary for most new startups.
Rather than wasting valuable resources on HR solutions that your company doesn’t actually need, a fractional HR person can offer customized solutions tailored to the specific needs your company has right now. They bring in-depth knowledge and strategic insight, ensuring that HR initiatives are not only effective but also aligned with the company’s growth stage and culture.
A Fractional HR Person is the Solution
Let’s recap the alternatives:
- Spending time and money training someone new to handle problems they don’t have the tools to handle.
- Promoting someone from within who can’t see the big picture.
- Hiring a full-time ringer without the work to sustain them.
- Relying on questionable internet sources to shape your HR strategy.
These are all pitfalls associated with the alternatives to hiring a fractional HR person for your growing company. However, none of these options provides a company with an experienced, reputable, engaged, and cost-effective HR solution. A fractional HR person, like you get with Flynn Barrett Consulting, offers a model which allows us to spend as much or as little time as necessary to resolve your HR issues on an ongoing basis.
Even more importantly, we work closely with you to learn about your business and understand your needs, which allows us to provide appropriate guidance to your HR team or leadership on everything from conflict resolution to company policies and culture. By investing in a fractional HR person, you are also hiring someone that will grow with your company that can seamlessly navigate the complexities of growth, while fostering a positive work environment for your employees.
If you’d like to learn more about how a fractional HR professional can transform your business, improve employee relations, and ensure compliance without breaking the bank, contact Flynn Barrett Consulting today for a free, no-obligation consultation.
