If you're a business owner, you're familiar with trying to stretch your money as far as possible while still offering quality services. That means you find ways to spend less on equipment, facilities, and everything in between that helps you run your business.
And as the business world continues to grow, so does the demand for top-level services. But these services aren't always easily affordable, and there are talent market insufficiencies to make up for. The most efficient way for businesses to meet these two needs is through fractional services.
The simplest way to describe a fractional service is paying a fraction for a full-time position. Fractional services occur when a business needs internal expertise but hiring a full-time employee is not feasible. A fractional hire or team provides that service for you for a specified period instead of on a full-time basis, cutting costs while affording you the high-level of expertise you need.
Fractional services positions help to fill gaps for small to medium-sized businesses, with roles such as CIO, CMO, CFO, and HR.
Marketing, Finance and IT has been the leaders in the early growing fractional service market.
The fractional outsourcing market is currently valued at $75 billion and has grown at 70% year over year in Canada.
Particularly, two key aspects have allowed fractional services to grow:
The Rise of Remote Work Models
First, the pandemic quickly proved people could work from anywhere. A new survey shows 8 in 10 professionals are working hybrid or remote while only 3% of professionals are looking to go back to the office 100% of the time. These facts have opened up more businesses to hiring remote fractional employees.
Hiring and Retaining Top Talent
The demand for employees and top talent is very high, which makes it even harder to keep employees especially when they fall in the high-level or specialized categories. The Bureau Labor of Statistics showed there were 10.5 Million open jobs in November 2022.
Fractional services are the most innovative type of outsourcing. They come with these benefits:
This is the first and most obvious advantage of engaging talent on a fractional basis. It's especially attractive for small businesses because these services are offered at a flat monthly fee, so you can stay within budget and avoid upselling services.
More importantly, you spend less time scoping, quoting and selling (traditional consulting) and more time driving value from this high-level expertise for your business.
Fractional service providers work tirelessly to prove themselves and drive real value so they can build long-term relationships.
This relationship is also valuable for the business because you have a trusted source of expertise when you need it.
Avoid Internal Hiring
Hiring for top positions is expensive and time-consuming, with accompanying pressure on the specific individual for high performance.
Also, the market in the digital age is advancing rapidly, and it's unlikely that SMB’s can continue to attain this expertise internally on a full-time basis.
Fractional services scales with your operation as it grows. You can increase your fractional services at any point as the demand increases for specific expertise and even have multiple fractional positions. Should the demand for employees reduce, you can just as well scale down your level of fractional services.
A business grows in proportion to the expertise provided by its workforce. Fractional services are typically offered by organizations that focus on a specific niche with varying roles that can collaborate with your business from an independent perspective.
The traditional approach for hiring senior staff or top-level expertise is to spend much more than you do for middle and entry-level expertise. Fractional services change the dynamics, providing the best of both worlds: high-level skills at a fraction of the cost.
Amplify Solutions purpose is building CRM solutions that are industry-leading at an attainable cost.
Our experience in finding what works best with clients has led us to position our service as a fractional service. In order for a CRM to truly be successful and industry-leading it can’t be left out-of-box or with one-off customization; it requires continual improvement led by experience. It is not until a business begins to fully adopt and understand the power of a CRM where the ideas of what can be automated, process driven, reported, and integrated grow.
We believe a lot of business owners and sales leaders understand this concept of continual improvement for a CRM but the issue is hiring full-time internally for this expertise is not attainable and the typical agency model of project or hourly-based consulting is not working.
That's why we work as a ‘Fractional CRM Administrator’ on a flat fee so we are fully aligned on budget and are able to focus on driving real value for our clients. For more information, contact us today and our team will be more than willing to help.