Is fractional executive trend right for you?

The rising popularity of fractional executives is one of the key recruitment trends of 2025 – and it has been a real boost for many of the businesses that have made appointments on that basis. But, as we’ve recently seen with the hybrid and more flexible roles that emerged during the pandemic, could it eventually fall to the wayside as employers realise it doesn’t align with their long-term needs?

The first thing to say is that the jobs market has evolved a great deal since the Covid years. After the intensity of leading businesses through the pandemic, many C-suite executives are opting for portfolio careers rather than traditional roles, attracted by the flexibility, opportunity to share their insights and expertise, and the ability to remove the risk of working for a single company.

On the employers’ side, there are some clear benefits to going down the fractional route too. It can provide them with top-tier talent without the overhead cost of a full-time employee, allowing businesses to dial up or down the commitment based on their needs and avoiding the rigidity of traditional hires. It also brings a fresh perspective – external experts can often provide objective viewpoints that can challenge status quo thinking.

A fractional executive can be a big asset to a young firm (Picture: Adobe)

Equally, fractional executives can allow an organisation to tap into specialist skills. CFOs, for example, may have particular experience in internationalisation, readying a business for exit, or overseeing a particular growth initiative when professionalising or digitalising a company. These all are required at different periods of a business’ journey and can come at a price premium, but the fractional model allows startups to stay lean while still ‘borrowing’ wisdom from seasoned veterans.

Those qualities are reflected in the high demand we have seen across industries experiencing rapid change, such as tech, biotech, manufacturing, and professional services. And roles such as fractional chief financial officers, chief marketing officers, and chief operational officers are often the most pertinent for growth transitions, evolving the most through a company’s lifecycle.

However, it’s important to remember that fractional appointments are still a permanent employee of the company – they’re not a stop-gap option or a means of troubleshooting a temporary challenge. Instead, they should be thought of as part of the strategic model for a business and a contributor to its long-term aims, whether that’s tied to a capital raise, opening customer networks, or support with projects such as ESG or technology implementation.

It also needs to be recognised that there is a threshold at which hiring someone full time is likely the better option. Broadly speaking, we find that tends to be when a company reaches £10 million in revenues and, with that, has reached the scale where more support is necessary at a C-suite level and the rotational nature of fractional appointments isn’t required any longer.

The rise of fractional executives is a reflection of the complexity of modern business life, says Sophie Randles

But, here, there is also a risk of unintended consequences. With so many senior executives removing themselves from permanent roles and choosing the portfolio route, larger companies may find themselves with a dearth of options for the permanent role they are trying to fill at a senior level. We also need to factor in the demographics of the UK market and the shortage of next-generation talent, and leaders, available.

The rise of fractional executives is a reflection of the complexity of modern business life – no individual can be a master in domains as disparate as AI, ESG, digital transformation, and geopolitical developments. But it may not be the right approach for every business, so consider your options carefully before assuming it is the best way to go as the latest recruitment trend.

Sophie Randles, director at Livingston James