The future of work in the gig economy
19 Feb 2025
Uber. Airbnb. Amazon.
Just three, well-known examples of global multinationals thriving in the gig economy – a model that’s revolutionized traditional employment by offering flexible, on-demand work opportunities for businesses and professionals. And while this certainly isn’t a new phenomenon – thanks to digital advancements it’s become accessible to large numbers of people – it’s paved the way for broader applications such as fractional hiring.
Fractional hiring involves employing skilled professionals on a part-time or project basis rather than committing to full-time roles. This makes it especially attractive to startups, small to medium-sized companies and rapidly scaling enterprises, who often need top talent fast without the cost or commitment of full-time employment. While fractional roles have traditionally been associated with C-suite level positions, in today’s world, this is increasingly changing. Now, it’s possible to hire practically any specialist on a fractional basis, whether you need a junior graphic designer, an experienced tax consultant or an SEO expert.
Fractional hiring benefits both businesses and individuals alike – there’s a reason why 57.3 million freelancers can be found in the United States alone (it’s estimated that by 2027 there’ll be 86.5 million freelancers), and more than a quarter of US workers (36%) participate in the gig economy. Over the years, fractional hiring has also formed the core of our service offering here at HelloKindred, and as our recent survey shows, remains a pressing topic for both clients and associates alike.
With that in mind, let’s take a closer look at its many advantages.
1. Cost-efficiency
Hiring fractional professionals saves on salaries, employee benefits and office overheads, significantly reducing costs when compared to full-time roles. This enables organizations to allocate resources strategically and direct funds toward other critical areas of growth and development. To get some idea of what these savings could be, Forbes estimates that the fractional business model saves 30%-40% compared to the cost of hiring a full-time employee.
2. Access to specialized skills
Fractional hiring enables companies to bring in the expertise and niche knowledge that might otherwise be unaffordable in a full-time capacity or unavailable internally – especially for high-impact projects. If a company requires the services of a chief technology officer (CTO) but doesn’t have the need or budget for a full-time individual, it’s better to engage a fractional executive with CTO experience to fulfil specific operational needs. It’s a game-changer for high-demand skills too – in fact, nearly three-quarters of executives cite the importance of fractional workers in sourcing skills in scarce supply.
3. Flexibility and agility
With fractional hiring, businesses can adapt quickly to fluctuating market needs, workloads and project demands, by scaling their workforce up or down as and when needed. As a business, you might require a certain skill a few days a week or only while a specific project is on-the-go. Since you can determine the ‘fraction’ of a fractional hire in terms of days or hours per week, this makes fractional staff not only affordable but also fully flexible to the requirements of your business. Quite simply, it enables you to call the shots.
On the other hand, fractional roles offer professionals the freedom and flexibility to work with multiple clients, diversifying one’s experience and income sources while enhancing career experiences. It’s a great way to add another company to your portfolio, helping you to build credibility and brand awareness.
In a survey by BCG Henderson, the top three priorities across all types of voluntary workers were spending time on more meaningful and interesting tasks, being self-employed, and fitting full-time work more flexibly around private needs. As a result, they also reported higher happiness and satisfaction levels with their work than people in traditional full-time employment. In the same survey, when asked to define their preferred future employment, around 45% chose to remain independent, compared with only around 20% who favored a full-time position.
4. Access to a diverse talent pool
Fractional hiring opens opportunities to work with professionals from various industries, backgrounds and different geographical locations. Companies can benefit from the fresh perspectives, ideas and experience fractional hires bring, driving a culture of creativity, innovation and problem-solving.
5. Quick and easy recruitment and onboarding
Let’s not forget the time-consuming admin of traditional hiring processes, typically involving multiple rounds of interviews, checks and onboarding procedures. Fractional hiring simplifies all of this, allowing organizations to quickly identify and engage people with the right skills and experience. Fractional hires are parachuted into your business with a specific purpose in mind. They know exactly what you need from them, and they are ready to get straight to work. This streamlined approach saves significant time and resources while allowing you to focus on your core operations.
6. Knowledge transfer and learning opportunities
Fractional workers bring with them unique industry insights, best practices and valuable networks. And they’re more than likely working at another company while being employed by you. Most organizations, especially if you’re a startup or on the smaller side, can benefit from the transfer of knowledge that naturally occurs with collaboration, gaining access to the latest trends, strategies and industry connections. As a result, this can help boost your business, supporting you to overcome challenges, seize opportunities and achieve your business objectives.
7. Reduces risk
According to the GrassGreener Group, the cost of a bad hire is more than three times that of the original salary – and a poor hiring decision is typically made 30% of the time. Since fractional hires are vetted experts who also have limited attachment to your business, this reduces the risk of a bad hire.
Embracing the fractional mind shift
If you’re looking to take advantage of the many opportunities fractional working and the gig economy offers, here are our top tips. With 25 years of client collaboration, and talent now working across 80 cities and 10 countries, we’ve reimagined how work can – and is – delivered.
For businesses:
- Set your goal: Before diving into fractional hiring, define your objectives and desired outcomes. Outline the roles you want to fill, the expertise you need and the impact your fractional hires should be making on your business.
- Integration is key: Openly communicate, provide resources and offer comprehensive support to integrate fractional hires quickly and easily into your team. The sooner they fit in and know what’s expected of them, the better for you AND them.
- Measure success: If applicable, but especially for leadership roles, define and regularly assess key performance indicators (KPIs) and metrics that align with your fractional hires’ responsibilities. They’ll need to deliver on their responsibilities just like everyone else.
For individuals:
- Determine your fit: Firstly, consider your skills and experience and what types of roles might be good for you. Then, research companies for freelance opportunities on job boards or social media platforms.
- Build a strong online presence: Building a strong profile on platforms like LinkedIn and gig-specific sites such as Upwork or Fiverr is essential, and helps attract potential clients.
- Showcase your skills: Ensure you keep an updated portfolio or CV on hand that emphasizes your project or freelance-based accomplishments.
- Network, network, network: With fractional work, there are times when you’re going to be super busy and other times when you’re not. Use these periods of downtime to lean into your network, connect and hustle. Be proactive about building your network and marketing yourself as a fractional worker – attend industry events, go for interviews, meet work colleagues for coffee, join online communities, and connect with potential clients to build relationships and find new opportunities. Sometimes, it might even be necessary to do some pro bono work for a friend or colleague – this won’t scale, and you can’t keep doing this for long, but helping others during your periods of downtime can also lead to some unexpected opportunities.
- Be flexible: Adjust your rate if needs be – without feeling you’re being taken advantage of!
- Focus on in-demand skills: There are some areas that are more lucrative than others when it comes to fractional work. Examples of these include tech development, digital marketing, data analysis and business consulting.
- Manage your time effectively: With multiple clients and projects on-the-go simultaneously, it’s easy to drop balls. Minimize this by using software tools and apps such as Asana to manage contracts effectively and keep track of deadlines.
- Learning is a lifelong necessity: Keeping your skills up to date ensures you remain one step ahead of the competition and able to meet evolving market conditions and demands.
If this sounds like something you might be interested in, whether a company or an individual, please reach out to us. With more than 25 years of delivering simple, flexible and practical talent solutions for our clients and associates, we might be the answer you’re looking for.
