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FAQ

Every question we get asked, answered properly.

34 answers across pricing, how engagements run, compliance risk and the people problems that arrive with growth. No sales language, no hedging.

Fractional HR, explained

The questions we answer most often from founders and CEOs who have heard the term and want to know what it actually changes.

What is fractional HR?

Fractional HR is senior HR leadership hired on a part-time, retained basis instead of a full-time salary. You get an experienced HR director or chief people officer for a fixed number of days a month, with the authority to own the people agenda, sit in leadership meetings and make decisions rather than hand over recommendations. The work is continuous and embedded, which is what separates it from project consulting.

Read the full definition →

How is fractional HR different from an HR consultant?

A consultant is scoped to a project and delivers a document. A fractional HR leader holds an ongoing portfolio: strategy, escalations, manager coaching, compliance oversight and board reporting. The practical test is what happens when something unexpected lands on a Tuesday. The consultant is a change order; the fractional leader is already accountable.

How is fractional HR different from an outsourced HR provider?

Outsourced HR usually means an administrative help desk: policy questions, templates, payroll support. Fractional HR means a named executive who knows your business and owns outcomes. Many companies need both, and the cheapest configuration is usually administration outsourced and judgement brought in fractionally.

Compare the models →

What size company is fractional HR built for?

Most engagements sit between 20 and 500 employees. Below 20, the need is usually project-shaped and a diagnostic is enough. Above 200 to 400, depending on how distributed and regulated you are, senior HR demand becomes continuous and a full-time hire starts to make more sense. The threshold is about volume of work, not headcount alone.

Do we need to have an HR person already?

No. Roughly half our clients have nobody in an HR seat. The other half have a generalist or coordinator who is drowning in administration with nobody senior above them. In that second case the strongest configuration is the fractional executive owning strategy while the existing person runs the operating rhythm.

Can a fractional HR leader manage our existing HR team?

Yes, and it is one of the most cost-effective arrangements available. The fractional executive provides direction, calibration and escalation cover, while the internal team handles the daily work. It is materially cheaper than hiring a full-time HR director to do both jobs.

How quickly can someone start?

With a clear brief, two to three business days is realistic because the bench of vetted executives already exists. The usual delay is the client's own calendar for the kickoff session, not availability.

Cost, contracts and commitment

What fractional HR costs, how agreements are structured, and what the fine print usually hides.

How much does fractional HR cost?

Pricing sorts into three tiers. A fractional HR consultant runs a few thousand dollars a month for eight to sixteen hours. A senior HR director typically sits at three to six thousand for around twenty hours. A fractional CHRO runs six to ten thousand for two to three days a week. If a quote falls far outside those bands, ask which tier of person is behind the invoice.

Read the pricing breakdown →

Is fractional HR cheaper than a full-time hire?

At the senior end, almost always. A full-time CHRO carries base salary in the mid two hundreds of thousands in most North American markets before bonus, equity, benefits and support staff. A two-day-a-week fractional CHRO costs a fraction of that. At the junior end the maths can reverse, because a generalist's workload is continuous.

What is the minimum commitment?

Three months is standard, because the first 30 days are diagnosis and nothing meaningful lands before day 60. Longer terms should earn a lower rate and come with a documented exit. Anything open-ended in either direction is a contract worth reading twice.

Can we pause or scale a retainer down?

Usually yes, with notice, and this is one of the genuine advantages over a salary. Ask for the pause and exit mechanics in writing at signature. A provider who resists documenting them is telling you how the relationship will end.

What is not included in a retainer?

Full-cycle recruitment, litigation support, and large system implementations are typically separate, because they have different economics and different specialists. A good agreement names those boundaries explicitly so nobody is surprised mid-quarter.

Do you charge for the first assessment?

Our Strategic HR Diagnosis is a fixed $1,750: six hours of structured work, a document audit and a costed 90-day roadmap. We charge for it because it is real work, and it exists so that you can size a retainer against evidence rather than a guess.

See the diagnosis →

How an engagement runs

What the first month looks like, who does what, and how progress is measured.

What happens in the first 30 days?

Reading, mostly. Contracts, handbook, payroll configuration, recent terminations, and the org chart as it is rather than as it is described. Alongside that, interviews with leadership and a sample of managers. The output is a risk register ranked by exposure plus a 90-day roadmap with named owners.

What a fractional CHRO does in 90 days →

How many days a week does a fractional leader work?

Between one and three, structured as monthly capacity rather than a fixed weekly schedule. Early months tend to consume the full allocation. Later months often run lighter as the systems start holding without intervention.

Who do they report to?

The CEO or founder in almost every engagement, with a dotted line to the board or investors where one exists. Reporting to the person who owns the business outcome is what gives the role authority to say no.

How is success measured?

Three things at 90 days: leadership meetings include a people item with data attached, managers escalate earlier instead of sitting on problems, and there is a people narrative you could hand an investor without editing. Beyond that, agreed metrics such as regrettable attrition, time to hire and compliance gaps closed.

Do they work on site?

The pattern that works is one on-site day a month for leadership and difficult conversations, with the rest remote. Presence matters most in moments of friction, which is why fully remote HR leadership often underdelivers on employee relations.

What if the fit is wrong?

Say so in the first 30 days. A bench-based provider can substitute a different executive without restarting the commercial relationship, and the evidence gathered in diagnosis stays with you rather than the individual.

Compliance and risk

The exposure questions we are asked most often by Canadian and US employers between 10 and 200 people.

What are the most common HR compliance gaps in Canada?

Eight items account for most of what we find: offer letters that are not contracts, no documented probation process, untested overtime classification, vacation and leave calculations copied from elsewhere, unsigned handbooks, terminations without a paper trail, no accommodation process, and nobody owning the compliance calendar.

The eight gaps, itemised →

Is HR compliance federal or provincial?

Provincial for most employers, with federally regulated industries such as banking, telecom and interprovincial transport following the Canada Labour Code. For remote employees, the law of the province where the person actually works generally applies, which is how distributed teams accumulate obligations they never noticed.

Are we exposed if our contracts were downloaded from the internet?

Frequently, yes. The expensive gaps are usually a missing termination clause, a probation clause that does not survive scrutiny, or restrictive covenants drafted for a different jurisdiction. A single properly drafted template set, reviewed once by counsel, is one of the cheapest risk reductions available.

How often should policies and handbooks be reviewed?

Annually at minimum, plus immediately when legislation changes or headcount crosses a threshold that triggers new obligations. The practical rhythm is a quarterly compliance calendar review with a named owner, because unowned policy documents expire quietly.

Do you provide legal advice?

No. We build the HR process, the documentation and the management discipline around it, and we work alongside employment counsel when an issue is genuinely legal. Most compliance work is process rather than advice, which is why it does not need a legal retainer.

Can you audit us before we raise or sell?

Yes, and it is the most common reason companies call us. Buyer diligence reviews contracts, classification, terminations and documentation. Finding the gaps yourself, six months before a transaction, is considerably cheaper than finding them in a data room.

Hiring, performance and scale

The people questions that arrive once a company passes twenty employees and managers start making decisions unsupervised.

When should a company make its first HR hire?

Usually when you cross thirty to fifty employees, or earlier if you are hiring quickly in more than one jurisdiction, or if a manager has already produced a problem you cannot resolve cleanly. Before that, a diagnostic plus a fractional arrangement is almost always cheaper than a salary.

Your first HR hire →

Should the first HR hire be a generalist or a leader?

A generalist if the work is administration: onboarding, payroll coordination, policy questions. A fractional leader if the work is judgement: performance, org design, compensation and escalation. Most companies need the second one first, because the problems that hurt are managerial rather than administrative.

How do we fix performance management without a big programme?

Move to a quarterly rhythm: three short written notes per person per quarter and a thirty-minute conversation, compiled annually. It costs each manager around two hours a quarter and it produces the documentation that annual reviews pretend to create.

Build the review process →

How do we handle a termination properly?

Documentation first, then process, then the conversation. Statutory minimums are the floor, not the answer, and without a valid termination clause the exposure becomes common law notice measured in months. This is the moment to involve senior HR and counsel together rather than in sequence.

What does employer brand work actually change?

It changes the quality of the candidate pool before a role opens. Companies that publish how they hire, what they pay and what working there is like stop paying a premium in time-to-hire. It is one of the few HR investments that shows up directly in recruiting cost.

Employer brand →

AI, payroll and HR technology

Where automation genuinely helps a small HR function, and where it quietly creates a new category of risk.

Can AI replace an HR person?

It replaces the drafting and summarising share of the role, which is often why a part-time generalist was needed. It does not replace judgement on performance, restructuring and compliance, and those are the expensive parts. Used well, AI makes a senior HR person faster rather than unnecessary.

Where AI helps and where it hurts →

What employee data should never go into an AI tool?

Health and accommodation information, disciplinary records, individual compensation, and any identifying detail attached to a performance or termination decision. Write the list down once, approve specific tools by name, and require human sign-off on anything that becomes a policy or a decision record.

Do we need an HRIS at fifty employees?

You need accurate records more than you need software. A payroll system that holds the truth plus a small HRIS for leave, documents and reviews is usually enough. Buying an enterprise platform before the processes exist just moves the mess into a more expensive interface.

How do we choose a payroll provider?

Start with jurisdictions, not features. Multi-province or multi-state payroll narrows the field quickly, and integration with your accounting and benefits is the next filter. We assess, configure and migrate payroll as a fixed-scope project rather than an open-ended retainer.

Payroll and HR technology →

Still unanswered

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Six hours of structured review, a document audit and a costed 90-day roadmap. $1,750, fixed fee.