How Much Does Fractional Talent Cost to Hire?
Fractional talent is cheaper than full-time because you only pay for the time you need and avoid payroll taxes, benefits, bonuses, and equity. Most fractional leaders cost $5K–$10K per month, depending on hours and seniority.
NOTE: If you want a very thorough guide that walks through exactly how much fractional talent costs to hire, including benchmarks with real numbers, then see our Playbook How Much Fractional Execs Actually Costs to Hire. This article below serves only as a high-level summary.
Why Fractional Hiring Is Cheaper
Fractional talent works for your company part-time, and their compensation is relative to their time commitment.
They’re also paid as an independent contractor, not an employee. As a result:
- You pay only for the time commitment you need
- No payroll taxes
- No benefits (healthcare, 401k, etc.)
- No paid time off
- No bonuses or equity
How Fractional Talent Is Compensated
Fractional talent is typically paid via:
- Monthly retainer (most common)
- Hourly rate
The monthly retainer or hourly rate is the total amount you owe your fractional hire, unlike full-time hires that earn a base salary + payroll tax, benefits, etc.
Typical Compensation Ranges
Let’s break down how much fractional executives actually cost to hire. To do this, we’ll look at data from Fractional Jobs (and the 100+ companies we’ve helped hire fractional talent so far).
The basic variables that determine compensation are time commitment, seniority, and expertise. The below data also assumes U.S. based hiring.
Example Hourly Rates:
- Fractional CFO: $200 - $400 / hr
- Fractional CTO: $200 - $300 / hr
- Fractional CMO: $200 - $250 / hr
- Fractional Head of HR: $175 - $225 / hour
- Fractional Head of Sales: $200 - $300 / hour
Premiums and discounts can be applied in some cases too. Former founders, and folks from blue chip companies (e.g. Stripe) may see a premium, for example.
If you want a much more robust list of compensation amounts for fractional execs and other fractional talent, broken out by seniority, function area, and more, check out our full Playbook here.
Calculate the Monthly Retainer
Once you have the rough hourly rate, calculating the monthly retainer as follows:
hourly rate * hours per week * 4.34 (weeks in a month).
So a Fractional CMO at $200 / hr for a roughly 10 hour per week time commitment would be paid a monthly retainer of $8K - $9K.
Bottom Line
Fractional hiring delivers senior output without full-time overhead. For many growing companies, the cost savings and flexibility make it a no-brainer.
If you want to hire fractional talent, and these rates sound good to you, then Fractional Jobs (the site you’re reading this on!) can help. We’ll introduce you to a handful of the best candidates for your need. Learn more here.
The best part?
You pay them directly. We’re not a middleman. So there’s no markup on their rates.
Who Wrote This Guide?
I’ve helped 100+ companies hire fractional execs and other fractional talent. I also spent a year as a Fractional Head of Product.
I intimately understand how fractional work works from both sides of the table. And this guide is meant to help everyone get up to speed on the fractional world, quickly.
What to read next
Want more?
HEY COMPANIES,
You’ll be speaking with Fractional Jobs founder
.jpg)
.png)
You’ll be working with Fractional Jobs founder
