What is the difference between fractional HR and outsourced HR?

The difference between fractional HR and outsourced HR comes down to how much control you want and how integrated you need HR to be in your business.

Fractional HR: This where you have a part-time highly experienced People Director who works in your business but for a faction of their time. They work with you on a regular basis, anything from 2 to 8 days a month, depending on what your company needs. They become a part of your team, helping with the people strategy and implementation just like an in-house HR person would, but without the full-time commitment or cost. This option is great if you want someone who really understands your company and is consistently available to help you on a long-term basis but without the full-time cost.

Outsourced HR: With outsourced HR, you hand over specific HR tasks or the entire HR function to an external company. They handle specific tasks like payroll, benefits administration, compliance, and sometimes even recruitment. You’re paying for a service, and the provider manages operational HR in a more hands-off way.

A fractional People Director gives you a dedicated, part-time trusted people expert who is closely involved in your business at a strategic level, while outsourced HR is more about contracting out specific HR tasks to a third-party provider. Both options can be flexible and cost-effective, depending on what your business needs.