5 Ways Fractional Recruiting Can Help Your Startup With Hiring

 5 Ways Fractional Recruiting Can Help Your Startup With Hiring

Hiring new employees for any company can be pretty challenging. But for tech startups, it can be even more difficult. Hiring is slow, and this can be especially risky for a startup that needs to ramp up its hiring plan fast due to recent funding. Unlike well-established companies, startups lack the funds and operational capacity to set up entire HR departments focusing on recruitment and hiring. Most companies respond by increasing the duties of their internal HR professional, but this only leads to employee burnout. 

So, what is your growing startup to do? You can hire a contract recruiter or fractional recruiter to help with your growing company’s hiring needs. Fractional recruiting is a solution that lets companies tap into professional expertise at a fraction of the cost of hiring a full-time HR team. A startup would especially benefit from fractional recruiting services if it’s considering a major growth strategy, expansion, or if its gross annual sales don’t exceed $100 million. Read on to learn more about fractional recruiting and how it can help your company with hiring. 

What is fractional recruiting?

Fractional recruiting is where a company augments its talent sourcing and recruitment teams via a third party (can be an individual or agency) instead of creating an internal full-time HR department for the same process. Many startups don’t need a full-time HR department. Still, they prefer to work with a professional on a flexible basis to address common issues, including recruitment, hiring, training, staff relations, benefits, payroll, and legal compliance, and at a cheaper cost. This arrangement lets startups enjoy the benefits of an internal HR department while being flexible in terms of overhead costs and expenses, which sets them up for long-term success. 


When should a startup hire a fractional recruiter?

Your startup may benefit from fractional recruitment services if: 

  • Your current HR person or team is swamped and unable to achieve all their goals.
  • You’re looking for an HR thought partner to work independently but aren’t ready to employ your first Head of People. 
  • You’re interested in improving your interviewing, employing, and onboarding to support fast growth. 
  • You need additional help preparing for an event, such as a massive layoff, growth spurt, or IPO. 
  • You’ve grown to a point where candidates and employees expect that you’re offering good medical and dental benefits, PTO policies, and 401k, but you do not have them. 
  • Your HR person has quit or is on an extended leave of absence, and you need a fractional recruiter to fill in. 

What is a fractional employee? 

As the name implies, a fractional employee is someone a company hires for a “fraction” of the time a typical employee would work. It’s like any other ongoing employer/employee relationship where a company prefers to retain the employee because he’s an expert on a particular subject but doesn’t pay him the full-time price tag. However, fractional hiring does not have a fixed schedule since the employees will make themselves available to the client during specific timelines that work best for both parties. While fractional employees tend to forego medical, dental, and 401K benefits, they have a flexible work/life balance and maintain their preferred pace of life. 

For example, a tech startup may need a CTO to build its tech strategy, lead software development, and handle planning, integration, and implementation. But, it may not be big enough yet to justify the cost of hiring a full-time CTO. So, the company would employ a fractional CTO who would provide the same expertise on a flexible basis but without the high salary, benefits, and overhead costs linked to a full-time CTO. 

Another example of fractional hiring would be where a tech startup hires a fractional recruiter to meet their on-demand recruiting needs, such as hiring temps, rapid hiring, etc. As described throughout the article, the company benefits more from working with a fractional recruiter who fills the role of the full-time HR team at a fraction of the cost.

The benefits of fractional recruiting for tech startups

Fractional recruitment eases a startup’s functionality and hiring process, allowing you to grow fast. It can benefit your recently started company in the following ways: 


Saves you money

Hiring full-time employees costs a company money and training them up-to-the-mark needs a time investment of six to nine months. Tech startups are especially financially strained. Even though your company is fast growing and attracts high amounts of funding, it’s hard for you to accommodate the growth well. So, you can’t afford to overscale or hire too many full-time employees prematurely. Fractional recruiting lets you overcome the full-time price tag barrier, particularly that of HR executives with considerable brand experience. So, you’ll get 100% of a professional executive’s brainpower and expertise without incurring their whole cost. 


The company gets access to targeted skills and experience.

A fractional recruiter gives you access to important, specialized, skills that are not needed full-time or on an ongoing basis. For example, you may need to hire a web developer to update your existing company website or a temp software developer to fill in on behalf of an employee on maternity or sick leave. In such cases, the recruiter gives you instant access to the particular skills your company needs and for the time it needs them. 


They handle the entire recruiting and onboarding process

The hiring process is exhausting and time-consuming, yet integral to your company’s success. So, you must be vigilant throughout the screening, hiring, and onboarding process. Your fractional recruiter will source and interview clients and create questions, processes, and tools necessary for future hiring. They can also organize pre-employment prerequisites, signatures, document upkeep, and answer any questions along the way. 


Lets you focus on more critical tasks

A fractional recruiter has worked across industries and organizations of different sizes. They’re aware of the best practices and how to stay ahead, helping you anticipate what you need to focus on. This expertise is critical for a fast-growing startup and frees up company executives to focus on other important tasks like customer acquisition, product development, etc. 


Gives you access to infrastructure

A fractional recruiting company can handle often-overlooked responsibilities such as documentation and templates, which are crucial in growing a company. Creating such forms and processes is often a lot of work for tech startups. So, the recruiter can create templates for you, including employment applications, performance reviews, employee surveys, offer and termination letters, etc. 


Hire TECLA’s on-demand recruiting services today

Fractional recruitment is a game-changer for startups. It lets you leverage professional talent without breaking the bank and thrive in a highly competitive market with rising salaries. If you’re considering fractional recruitment to help grow your startup, you can work with TECLA. We are a company that knows the dilemma startups find themselves in when they’re conflicted between product, technology, or recruiting talent. Our on-demand recruiting services give you access to high-quality hires at a low cost, offering the best of both worlds to help speed company growth and scale. You can get in touch with TECLA to hire a contract recruiter. Take advantage of our fractional recruiting services to help achieve your startup’s HR objectives.

Gino Ferrand

By 

Gino Ferrand

Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.

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