Best Practices , Re-framing Work , Trends
October 16 | Blogs
The Cost Efficiency of Fractional Hiring in Tech: Aligning with the Changing Workforce Dynamics
Estimated read time 3 min

Our series began with an exploration of the strategic vantage point fractional employment offers businesses in today’s rapidly changing landscape. As we progress, this article dives deeper into the financial and cultural benefits of this model, especially when considering the shifting dynamics of the tech workforce.

Direct Cost Benefits in a Competitive Landscape

  1. Reduced Overhead Costs: A Deloitte survey indicated that around 26% of technology firms claimed significant cost savings when relying on fractional, freelance, or outsourced roles. By avoiding traditional employment expenses such as benefits, ongoing salaries, and training costs for full-time employees, tech companies were able to redirect funds towards innovation and expansion.
  2. Evolution of Full-Time Benefits: Tech benefits packages are evolving. While traditionally focused on health insurance or stock options, there’s a growing emphasis on work-life balance, mental health, and continuous learning. These perks can cost companies up to $35,000 or more per employee annually. Healthcare premiums alone are increasing by 6-10% annually. Fractional employment offers an avenue to reduce these costs while still tapping into top-tier talent.

Navigating Turnover, Performance, and Employee Satisfaction

  1. Employee Turnover: In the competitive tech landscape, turnover can be high, and the cost of replacing a tech professional—sometimes reaching 150% of their annual salary—is felt both financially and culturally. Fractional hiring provides a buffer, ensuring continuity and stability.
  2. Performance and Engagement: With the rise of remote work and flexible schedules, ensuring employee engagement and peak performance has become paramount. Fractional hires, often specialists in their domain, bring a concentrated focus that can elevate overall team productivity.
  3. The New Tenure Reality: The rapid innovation pace in tech sees professionals frequently shifting roles. With average tenures of 2 to 3 years, the stability and expertise fractional roles bring can be invaluable.

Hidden Costs & The Modern Workforce

  1. Continuous Learning: As technology evolves, so must its professionals. While companies may spend upwards of $5,000 per employee on training and development, fractional hires and agencies often prioritize their own upskilling, aligning with the modern workforce’s emphasis on continuous growth and learning.
  2. Leading in Uncharted Territories: Managers today often grapple with guiding roles that are entirely new. This can result in strategic misalignments. Fractional hiring mitigates this by bringing in experts, reducing the management strain.
  3. The Skill Set Dilemma: Today’s projects demand a diverse range of tech skills. A full-time hire might be a Sales Cloud expert, but what if your project suddenly requires CPQ, Marketo, and/or Netsuite expertise? Fractional hiring allows for nimble adjustments to ever-evolving tech requirements.

Embracing Flexibility in Tech

  1. The Demand for Flexibility: The modern tech professional and modern organizations require more flexibility. Building hybrid teams with full-time and fractional employees cater to this, offering adaptable schedules and varied projects, ensuring both satisfaction and productivity.
  2. Driving Results in a Dynamic Environment: As tech projects become more complex and time-sensitive, the agility and specialized knowledge of fractional hires ensure that businesses remain ahead of the curve.


In an era where engagement, performance, and agility are not just buzzwords but critical business drivers, fractional hiring in tech emerges as a solution that aligns with the times—both financially and culturally.

Join us as our series further delves into the nuances and potentials of fractional employment, perfectly attuned to our economy’s evolving demands and the modern workforce’s aspirations.