The Future of Hiring: Everything You Need to Know about Fractional Talent Acquisition

Did you know 36% of US employees are non-traditional workers like contract, freelance, temporary, or gig workers? That’s 58 million people. Half of Gen Z have a second job along with more than a third of millennials. The percentage of companies whose staff is a quarter gig workers is approaching half (currently 40%). Fractional talent acquisition is on the rise.

In the enterprise workforce, fractional recruiting is even more popular, with nearly half (47%) of enterprise workers being independent. Workers are craving more flexibility and independence, and companies want more agility and cost savings. It's the perfect win/win arrangement.

So, what is fractional talent acquisition exactly? Fractional talent acquisition is when a company hires a fractional recruiting firm to provide them with part-time or temporary workers. Usually, businesses engage in fractional talent acquisition to get access to specific skills, often high-level or executive skills, for a specific project or timeframe.  

The reason fractional talent acquisition is on the rise is due to the highly dynamic nature of the current business landscape. Technology is accelerating changes at an unprecedented rate and competition is fierce. If you want your business to survive, and better yet, thrive in this environment, you have to be flexible.

Fractional talent acquisition allows you to get the expertise you need when you need it and change your team as your business's needs change. It's also much more practical and cost-effective than hiring permanent, full-time employees. Let's go over how fractional talent acquisition works, the steps involved, the benefits for your business, and what the future holds for fractional recruiting.   

How Fractional Talent Acquisition Works

Fractional talent acquisition is a business value powerhouse. Gone are the days of companies being staffed entirely with full-time, permanent employees that work in an office. As technology advances and business becomes less predictable, more companies are opting for flexible solutions. This one-size-fits-all employment model no longer suits business or workers. That's why companies are opting for a dynamic, mixed model of employment.

They have some full-time, permanent staff for the things that never fluctuate. Some on-site staff are needed for jobs that can't be done remotely. Remote workers are hired for jobs that don't require their physical presence. Then, they hire some fractional workers for things that need to be done once, short term projects, and other situations that require non-traditional hiring solutions.  

The future of hiring is here today. Fractional talent acquisition is the best way forward for you, your business, and your employees. Let's delve into what the fractional recruiting process entails and what you have to gain from implementing fractional talent acquisition into your business.

Understanding the Process

The first step to understanding the fractional talent acquisition process is understanding how the job market has changed and what the new expectations are if you want top talent. There are all new rules now. Collaboration between companies and fractional talent acquisition teams can make the fractional recruiting process go much smoother. Here are the basic steps.

Employment Branding

Your company is your brand — not just for customers, but for employees too. Is your company's employer branding as strong and compelling as your consumer branding? Employees talk, discuss their experiences, and rate companies on sites like Glassdoor. Word of mouth spreads. Make sure you’re intentional about cultivating a positive employee experience, since the stories that your people share are foundational to your employer brand. You want an intentional employment brand that positions you as an employer of choice.

Lead Generation

You have to understand your talent needs and priorities. What positions are most impactful? What skills do you need most? Start there and find the people who can fill those needs best. You have to sell yourself as the company they should work with. A fractional recruiting firm can help you source the right candidates and find the right match.

Candidate Engagement

Create a proactive hiring strategy. Develop a recruitment pipeline so you'll always have a reserve of potential hires that you know are a good fit and with whom you've developed a relationship over time. Fractional hiring practices mean that if you have ten applicants for a role and hire one, the rest will move on to a different fractional position.

Since it isn't permanent and/or full-time, they'll still likely be available next time you have an opening they fit well. The process for fractional recruiting takes a long time. Reactive recruiting means rushing to fill an open position. Strategic recruiting means you're always looking for good people to fill your pipeline. That way you can take your time and always have a pool of people you know have high potential.

Screening and Assessment 

Implementing a screening and assessment process allows you to develop a deeper understanding of your potential hires, beyond their resume or what they look like “on paper”. Standard screening questions create an even playing field and set the stage for you to make strong hires consistently. The right assessment tool empowers you to predict how a potential hire will perform in your culture and job environment. Once someone meets your screening and assessment requirements, move them into your future recruitment pool.

Candidate Interviews 

Interview the people who seem to be the best fit for current openings. Understand what their expectations are for an employer. The interview process should be candidate-centric. It's as much about finding out if your offer meets their needs and requirements as it is about ensuring they're a good fit for your opening and company culture.

How candidates are treated during the hiring process has a huge impact on whether you score the top talent and what future candidates will hear and think of your business. Consider your employer branding and make sure you position your company as a great place to work.

Candidate Offer

When you find the person who fits the role best and for whom your position is most ideal, offer them the job. If they accept, all the other candidates should be notified and thoughtfully engaged. Ensure you treat them well and explain that you'll keep them top-of-mind for future openings. Now you have a relationship with top-tier candidates that you've already vetted, and you’ll nurture that relationship into the future.

What Are the Benefits and Challenges?

Fractional talent acquisition has a lot of advantages. However, there are also obstacles you have to overcome to get them. Like anything worth having, it takes effort.

Advantages of Fractional Talent Acquisition Include: 

• Cost Efficiency: You can hire a fractional worker for a set period of time or part-time on an ongoing basis, and pay a fraction of the cost of a full-time employee.
• Flexibility and Scalability: Speed and agility are a must, especially for startups and small businesses. Being able to access top-tier workers with extremely valuable skills quickly and affordably is priceless. When something comes up suddenly or changes drastically, fractional talent acquisition allows you to adapt by adding or removing fractional workers as your needs change. As your business grows, you can scale easily.
• Access to Specialized Experts: Plenty of business tasks or processes require a specialist. However, these high-value workers can be expensive. If you don't need them permanently, you can hire a specialist for a one-off project or a fixed amount of time. Fractional talent acquisition gives you access to the best quality workers for as long as you need them. Strategic recruiting gives you a pool of qualified workers who you know already meet your needs and fit your company's culture.

Challenges of Fractional Talent Acquisition Include: 

• Misalignment with Company Culture: New workers need to fit with your company culture. Misalignment can hurt employee morale and productivity. A thorough assessment process can ensure that new workers fit your culture perfectly.
• Managing Communication and Expectations: Having workers who don't work full-time and/or in the office can cause communication challenges. It's also important that both parties understand each other's expectations for work done, time spent, and pay earned. Having a fractional recruiting team can ensure that communication about expectations is clear.
• Integration Issues: Having someone new come in can be hard on your existing team and cause everyone's work to suffer. Having an assessment and screening process that allows you to understand their personality and how they work can help you find the right fit and reduce friction.

Future Trends in Talent Acquisition

This isn't your father's talent acquisition landscape. Things are changing rapidly. If you want to get ahead, you'll need to know what's next. Let's consider some factors shaping the future of talent acquisition.

Market Trends

The number of non-traditional workers just keeps growing. Already, 70% of small businesses and startups use fractional talent for affordable marketing experts and almost half (47%) of businesses surveyed by Deloitte showed a preference for flexible workers for agility purposes. Economic uncertainty is forcing companies to operate lean and dynamic businesses and causing high-level employees to realize they can earn more and gain more independence through fractional work.

Technology is evolving faster than ever. It's making amazing things possible. However, it's also forcing companies and workers to adapt to these changes. With new tools available, workers can be more productive, provide more value, and work more quickly. They can do it all from their own homes as more and more workers and employers alike prefer.  

This evidence leads us to the conclusion that these trends toward flexible, remote, and fractional work will not only continue but likely accelerate.

Evolution of Hiring Practices

The employment market has changed. Based on the current trajectory, it isn't likely to return to the traditional method. Traditional recruitment methods make up less of the total year after year. There are some jobs that will still need permanent, full-time employees. However, even those positions will likely change in the way they hire.

Fractional talent acquisition is being integrated into the long-term talent strategies of businesses of all sizes across industries. Proactive hiring allows for all the expertise, flexibility, and cultural cohesion a business needs. It also saves companies money and allows fractional hires to make more money by working for multiple companies on a fractional basis.

This kind of mutual advantage is too good to just disappear and return to normal. This method also encourages a worker-centric hiring style that considers the well-being of the workers. These changes benefit employers and workers at every level. Due to the productivity and retention benefits of this method, it should, and likely will, spread to traditional positions as well.

Key Takeaways

Fractional talent acquisition is the way forward. While it has challenges that require time, effort, and commitment, the benefits outweigh the challenges. Everyone makes more money and gets what they need out of the deal.

Setting up a proactive fractional recruiting system can be difficult for a business to do on their own. A fractional recruiting partner like TalenTrust can help. Contact TalenTrust to get started and learn more about fractional talent acquisition and fractional recruiting.