Fractional HR: Get the HR you need only when you need it.

Fractional HR is a business model where companies hire an external HR professional or firm on a part-time basis, outsourcing key HR functions. Instead of a full-time, in-house employee, they get experienced HR support as needed, whether it's for a few hours a week, a specific project, or on a contract basis. It’s an alternative to having a full-time HR department or person. 

Two factors when considering out-sourcing your HR: On one hand, you can get stuck tied down to expensive retainers or, conversely, pay a subscription fee that only gets you call centre-level support that doesn't get to know your business. On the other hand, under-spending on your HR with internal team members who have limited HR experience, can cost your company by failing to comply with ever-changing legislation. And additional headcount. AugmentHR has flexible HR service packages to fit every budget - all the while providing senior HR consultants with no commitment to retainers.

When HR outsourcing comes in the form of call centre, frankly it can’t. But AugmentHR’s team of dedicated, senior HR experts have worked in sectors ranging from veterinary businesses to pharmaceutical cannabis and every in between. So chances are, we know your sector and, better yet, we have the cross-learning experience to find the work-arounds so HR is more of a help than a hassle.

Fractional HR has experienced a surge of popularity driven by a shifting, uncertain business landscape and the corresponding need for a more agile, scalable, cost-effective model. The other benefits, such as happier teams, immediate access to senior help and objective views, are listed above.

Costs for fractional HR services vary based on several factors, including the professional's level of experience, the complexity of the work, and the pricing model.

Here's a breakdown of typical costs:

• Hourly Rates: A common model for fractional HR is an hourly rate. These rates can range from $150 to $250 per hour, with more senior-level consultants and those with specialized expertise commanding higher fees.
• Monthly Retainers: For businesses that need consistent support, a monthly retainer is a popular option, though it has its drawbacks. It provides a set number of hours per month for a fixed fee, offering predictable costs. These retainers can range from a few thousand dollars up to $10,000 or more per month, depending on the number of hours and the professional's level. The problem with this option is that you get locked into a fixed amount.
• Project-Based Fees: For specific, well-defined projects—such as creating an employee handbook, conducting a compliance audit, or managing a hiring initiative—a flat project fee may be used. The cost for these projects can vary widely based on their scope and duration.
• Flexible Hourly Packages: This is the most common model used by AugmentHR. Offered in packages of 10, 25 and 50 hours with no expiry dates, it offers greater flexibility and reduces your HR costs by only paying for what you need only when you need it. You receive an end-of-month report detailing the hours you used, making it perfect for companies that need on-demand HR support 

Ultimately, the cost is determined by the value the professional provides. While these rates may seem high on an hourly basis, they are often a fraction of the total cost of hiring a full-time, in-house HR executive, which includes salary, benefits, and other overhead.

Fractional Human Resources services provide a wide range of services, just like a traditional in-house HR department. 

Common services include:

• Policy and Compliance: Creating and implementing HR policies, employee handbooks, and workplace guidelines to ensure the company operates smoothly and legally.
• Recruitment and Onboarding: Assisting with the hiring process, from writing job descriptions and screening candidates to managing the onboarding and offboarding of employees.
• Performance Management: Designing and implementing systems for performance reviews, goal setting, and feedback to boost employee engagement and productivity.
• Employee Relations: Addressing workplace issues, mediating conflicts, and coaching managers on effective people management.
• Compensation and Benefits: Providing guidance on competitive compensation packages and benefits to attract and retain talent.

But this is only a partial list. it’s what you need that’s the most important which is why we offer 15 different Fractional HR services that are customized so that you have exactly what you need - and nothing extra. For a full list of HR Services, click here.