A fractional CHRO, or chief human resources officer, is a senior people leader who runs a company’s HR strategy for 4 to 10 days a month. The role is shared across several clients and paid by retainer. It also goes by fractional head of people, fractional HR director in the UK, or part-time CHRO. An interim CHRO is a full-time leader for a set period, usually during a restructuring or a vacancy.
The buyer is typically a company that has grown past informal HR, with an office manager or a payroll provider handling the basics and nobody senior responsible for people decisions.
What a fractional CHRO owns
At a company of 25 to 150 employees, the role has five parts.
Compliance. Correct classification of employees as exempt or non-exempt and of workers as employees or contractors, a handbook that fits every state or country you hire in, required postings and training, and records that hold up if a claim arrives. Misclassification is the most common expensive finding in a first HR audit.
Pay. Salary bands by role and level, checked against the market, and a process for raises and promotions that managers can explain. A growing number of US states require pay ranges in job postings.
Performance. A review cycle, clear expectations for each role and a fair process for managing poor performance, including terminations that do not invite a lawsuit.
Structure and hiring. Org design as the company grows, job descriptions, an interview process and onboarding that gets new hires productive quickly.
Employee relations and culture. Handling complaints and investigations, manager training, engagement surveys and the policies that shape how people work.
What it does not cover
A fractional CHRO is a strategic role. Payroll, benefits administration and day-to-day HR tasks usually sit with a payroll provider, a PEO or an HR coordinator. Some HR firms bundle those services; many fractional CHROs work alongside them. Legal advice on specific disputes comes from employment counsel.
Hours and fees
Fractional CHROs usually work 4 to 10 days a month, heavier during a reorganization, a compensation review or a hiring push. Most providers publish no rates. Quotes typically run $3,000 to $10,000 a month. The cost guide covers the details.
When to hire one
The usual triggers are headcount and risk. In the US, companies approaching 50 employees take on FMLA leave obligations and, at 50 full-time equivalents, the ACA employer mandate; at 100, EEO-1 reporting begins. Other triggers: hiring across several states or countries; a first serious complaint, such as harassment or discrimination; high turnover in a key team; a reorganization or layoff; or managers who have never been trained to manage.
Who it is not for
A company under 20 employees with a good payroll provider or PEO usually needs no more than an HR consultant on call. A company of 300 employees needs a full-time head of people with a team. And a company that needs someone to process payroll and enroll benefits needs an HR administrator.
What to check
Ask which states and countries the candidate knows, whether they have handled terminations and investigations, and which HR systems they have implemented. Several fractional CHRO services are run by accounting firms; ask how they coordinate with your payroll and benefits providers.