How to Start Out & Build a Career as a Fractional CHRO

How do you build a sustainable career as a fractional HR leader?

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In this session, our experts shared insights on what it takes to start and scale a career in Fractional HR. The discussion also highlighted the differences between fractional work and consulting, how to find clients, pricing strategies, the key challenges of running a fractional HR practice, and a lot more.

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Key Insights and Takeaways

Getting Started with Fractional HR - The Importance of Networking

Fractional HR professionals operate as part-time, embedded members of an organization, actively participating in internal meetings, strategy discussions, and team management. Unlike consultants, who remain external advisors, fractional HR leaders are integrated into the company’s daily operations, often with all the bells and whistles like company email accounts and Slack access. 

For those considering fractional HR, our experts state that the best first step is to talk to as many people as possible—attending industry events, joining professional groups, and learning from experienced fractional HR professionals can provide invaluable insights. 

Finding Your First Clients and Establishing Your HR Expertise

• Networking: Unlike traditional job searches, securing fractional HR work is heavily network-driven. The most successful fractional professionals build their businesses through word-of-mouth referrals, professional networks, and industry visibility. Simply telling people what you do can lead to opportunities. Many fractional HR professionals land their first client through organic conversations with former colleagues, CEOs, or business leaders.
• Thought Leadership: One of the most effective ways to establish credibility and attract clients is through LinkedIn and thought leadership. Posting regularly, engaging with HR discussions, and showcasing expertise through speaking engagements can help create awareness and generate inbound leads. 
• Referrals: Since HR is a high-trust field, having referrals from people who vouch for an HR leader’s expertise significantly increases the chances of securing work. Many professionals get their first client through a trusted connection, which then leads to further referrals, making relationship-building a critical part of business development.

Pricing and Structuring Compensation

When it comes to pricing, the retainer model is preferred over hourly billing. Many fractional HR leaders charge a fixed monthly rate based on a set number of hours per week, such as 20 hours per week or 80 hours per month. 

This model ensures predictable income while giving clients access to HR expertise without the complexities of tracking hourly work.

The Challenges of Going Fractional

• Fractional HR requires managing taxes, benefits, and fluctuating income. Setting aside 20-30% of earnings for taxes and securing an independent health insurance plan are important steps before going full-time fractional. It’s also important to have a financial runway to navigate slower months or unexpected gaps in client work.
• Diversifying income beyond fractional retainers helps create financial stability. Many HR professionals combine fractional work with advisory roles, consulting, and speaking engagements. Some partner with HR tech companies to provide insights in exchange for compensation or equity. Others collaborate with fractional CFOs, CMOs, and business leaders to bundle services and offer more comprehensive solutions to clients.
• Another common challenge is scope creep, where fractional HR professionals unintentionally work more than their contracted hours. This happens because many come from full-time HR roles, where going above and beyond is second nature. Setting clear boundaries from the start helps maintain a balanced workload and prevents burnout.

Actionable Steps

• Define Your Niche & Expertise
  Before going fractional, identify your core expertise and the value you bring to businesses. Companies hire fractional leaders for immediate impact, so having deep expertise in areas like HR strategy, compliance, or talent development makes you a stronger candidate.
• Develop a Clear Pricing & Service Model
  Setting the right pricing model is key to sustaining a fractional HR career. The most successful professionals use a retainer-based model. This provides predictable income while allowing for better client relationship management. Additionally, defining what is included in the service agreement prevents scope creep and ensures both parties have aligned expectations.
• Build Your HR Network
  Fractional HR can be isolating compared to a traditional in-house role, so joining HR peer groups and networking communities is essential. Connecting with other fractional professionals creates referral opportunities, learning exchanges, and a sense of belonging. 

The Panelists

Tracie Sponenberg | Fractional CPO, Speaker, and HR Thought Leader

Tracie is the former Chief People Officer at The Granite Group, now Advisor and Fractional HR Executive with 25 years of executive HR leadership experience focused on aligning people strategy with business strategy in industries with deskless employees.

She is passionate about transforming organizations from paper-first to people-first, driving employee experience, and exploring the link between wellbeing and organizational health. She is also a keynote speaker on technology, leadership, branding, and all things HR.

Elles Skony | Founder & Fractional Chief People Officer

Elles is an executive and advisor with over 17 years of experience in high growth, mission driven, venture backed organizations. She has a passion for creating a method to the madness in the constantly evolving, some would say chaotic, environment of small to midsized companies.

Works with every level of the organization from entry to BOD to intentionally and strategically bring clarity and simplification at both the strategic and executional level.

She is also a community builder and passionate about supporting and coaching women in leadership who are doing it all. A big believer in the power of “thank you” and smiley faces :).

Alex Seiler | Fractional CPO, Speaker, and Startup Advisor

Global People leader, entrepreneur, start up advisor, mental health and DEI champion. Curious, mindful, analytical and data-driven.

Alex’s specific expertise centers on creating, transforming and building out systems that foster an equitable, innovative and inclusive workplace culture. His superpowers are learning new and different businesses quickly; process simplification; leveraging technology and reducing friction in enterprise-wide systems, enabling people teams + leaders to spend their time on the most value-creating work.

Download the Session Takeaways for more resources by SSR.

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