Why More Companies Should Embrace Fractional Leaders

The ultimate try-before-you-buy model

👋 Hi, it’s Kaylee Edmondson and welcome to Looped In, my newsletter exploring demand gen and growth frameworks in B2B SaaS. Subscribe to join 1k+ readers who get Looped In delivered to their inbox every Sunday .

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I recognize I’m incredibly bias here, but I believe the traditional employment model is breaking apart. Now, more than ever, companies need specialized expertise for specific challenges, and committing to full-time hires doesn't always make sense. Enter the fractional role—experienced marketers who step in for a defined period to solve specific challenges.

The concept isn't new, but it's gaining serious momentum as both companies and talent seek more flexible, impactful ways to work together.

The Shift Away From W-9 “Security”

The idea that full-time employment provides the ultimate career security is falling apart. I wrote about this in my original journey to solopreneurship piece, but nearly 500,000 tech workers have been laid off since 2022, shattering the illusion of stability that many believed came with a W-9.

According to projections, the U.S. will have 86.5 million people working outside the traditional nine-to-five by 2027. This isn't just a trend—it's a movement.

Why is this happening? Top performers are increasingly seeking:

1. Better work-life integration

2. The ability to take on multiple interesting projects

3. De-risked income through diversified revenue streams

4. Greater autonomy over their work and career trajectory

For many executives, this means transitioning from permanent roles to fractional leadership positions where they can deliver maximum value without the constraints of traditional employment.

Why Companies Win with Fractional Work

For companies, fractional offers a strategic advantage that neither permanent hires nor typical consulting engagements can match. More orgs should consider this model because they’ll gain:

1. Specialized Expertise Without the Long-Term Commitment

Startups go through several distinct growth stages (pre-seed, pre-PMF, $10M-$30M, $30M-$100M growth stage, $100M++, etc.). They all come with their own challenges and their own opportunities for advantages. The org needs to hire for someone who’s “already seen the movie”—but perhaps only for a specific growth phase or initiative. A fractional resource brings:

• Deep expertise in a specific area

• Pattern recognition from multiple companies

• Frameworks and playbooks that have been tested across different contexts

• The ability to execute, not just advise

2. Cost-Effective with Higher ROI

While fractional’s command premium rates, the economics often work better than permanent hires when you consider:

• No long-term salary commitments

• No benefits packages or associated overhead

• No recruitment fees or severance costs

• Focused engagement on specific outcomes

Most importantly, these leaders are accountable for delivering tangible results during their tenure, rather than simply filling a seat in the org chart.

3. Speed and Adaptability

In today's market, timing matters. Fractional resources can:

• Start without lengthy recruitment processes

• Apply proven playbooks to get results faster

• Adapt their involvement as business needs change

• Exit smoothly once objectives are achieved

This adaptability allows companies to respond quickly to market shifts, unexpected vacancies, or new opportunities without making permanent structural changes.

4. Objectivity Without Political Baggage

Fractional brings a fresh perspective unclouded by internal politics.
A startup with politics? No way. 😅

They can:

• Challenge existing assumptions

• Make necessary but difficult changes

• Provide honest assessments

• Implement best practices from diverse experiences

Traditional roles often come with restrictions that limit perspective and input. Fractionals aren't bound by these limitations.

5. Building Capability, Not Dependency

Good fractional resources don't just solve problems—they build capability within the organization by:

• Transferring knowledge to permanent team members

• Implementing sustainable systems and processes

• Mentoring internal talent

• Documenting frameworks for future use

Their impact continues long after they've moved on, creating lasting value for the organization. For me personally, my legacy is my impact. It’s directly associated to my name; it now has more of a direct tie to my ability to land future clients than it ever did when I was in house. This means I am heavily motivated to come in, get right to work, make long-term impact and enable the teams around me.

When Fractional Makes the Most Sense

Fractional works particularly well in several scenarios:

1. During key transitions: When an executive departs unexpectedly or you need time to find the perfect permanent hire.

2. For specific transformations: When implementing significant change that requires expertise your team doesn't currently have. (Think: ABM, orchestration, tech stack implementation, etc.)

3. For specialized initiatives: When launching new products, entering new markets, or building capabilities like balancing your engine and fuel.

4. During growth phases: When scaling requires expertise that won't be needed once systems are established.

5. For periodic needs: When you require specialized leadership for quarterly or annual planning, strategic reviews, or periodic initiatives.

Making the Most of Fractionals

To maximize the value of fractionals, companies should:

1. Define clear outcomes: Be specific about what success looks like.

2. Give them authority: Ensure they can make needed changes without excessive red tape.

3. Integrate them properly: Give them access to the people and information they need.

4. Set time boundaries: Establish expectations about the duration with clear milestones.

5. Plan for knowledge transfer: Build in mechanisms to retain what they bring.

The Future Is Already Here

The market is already shifting toward more flexible work arrangements, and fractional work is in the mix. Companies that recognize this shift gain access to a growing pool of elite talent that wouldn't otherwise be available to them.

In an industry where specialized expertise makes all the difference, fractional leadership isn't just an alternative—it might be your competitive advantage. 😉