CEOs of small-to-mid-sized businesses often wear many hats—but that’s not always ideal. It diverts your attention from the core business and forces you to handle specialty functions you might not have expertise in, like HR.
CEOs recognize that an effective HR function enables the company to recruit better talent, build a healthy culture, and reduce risk. That’s why many team up with a fractional HR partner that offers the capacity and expertise to achieve these goals.
Based on our experience working with CEOs across many industries, NorthstarPMO has gleaned the following insights on what senior leaders really want from their fractional HR partners.
CEOs want to reduce risk.
Running a business always involves balancing risk and reward. And successful CEOs know that a fractional HR partner can help reduce risk in many ways—from shrinking turnover to ensuring regulatory compliance and avoiding lawsuits.
When a highly experienced medical professional decided to launch her own practice, it was her first foray into hiring employees, within a state that has complicated employment laws. She tapped a fractional HR partner to navigate the complexities and develop a sound action plan. In turn, she avoided several compliance errors that would have had serious consequences and got her practice up and running quickly and effectively.
CEOs want to free up energy to focus on their core business.
Most small and mid-sized businesses can’t justify a full-time HR leader, but CEOs recognize that HR isn’t a function where they themselves can necessarily add value. When they decide to outsource HR, they typically seek a “safe pair of hands” that will take this burden off their plate, so they can focus on areas of the business where their expertise does add value. They expect their fractional HR partner to keep HR issues from distracting them from the core business, freeing up time and mental energy to focus on important efforts like building revenue and setting long-term strategy.
CEOs want someone to solve their recruitment challenges.
A tight labor market makes it difficult to compete for top talent, especially for small and mid-sized businesses. In many industries, employers no longer have the upper hand. This shifting landscape is causing many CEOs to rethink how their companies approach recruitment and to seek an experienced partner to deliver better outcomes.
The right fractional HR partner recognizes that recruitment is as much a sales and marketing exercise as an evaluation and selection process. They can help the business hone its messaging to resonate with ideal candidates and paint a compelling picture of what it’s like to work for the company. They also know how to appeal to the priorities of today’s candidates, including work-life balance and the ability to achieve a sense of purpose and community at work.
CEOs want someone to prioritize and resolve HR issues.
In any function of the business, success demands focusing on the highest priority matters. But CEOs often don’t have the time or expertise to determine which HR issues should bubble up to the top of the list and how to address them.
CEOs want a fractional partner to assess HR issues based on their priority and impact, then identify and implement effective solutions. They also expect their HR partner to exercise the judgment to bring an urgent issue to their attention, even if they’re still thinking through the best resolution.
CEOs look for strategic HR direction.
As much as senior leaders need a partner that responds quickly and effectively to emerging HR issues, they also want an HR roadmap with proactive strategies designed to head off problems and help achieve the business’s overarching goals. CEOs believe an HR partner should bring new ideas to their attention, including initiatives that can help drive the business forward. To do that, the HR partner must first delve deep to understand the business intimately, then apply their experience across similar organizations to recommend strategies that align with the business’s needs and leverage proven HR best practices.
CEOs want help building a vibrant workplace culture.
CEOs often face the dual challenges of growing the business and maintaining a culture in which all employees feel heard and valued. Many lean on a fractional HR partner to serve as a neutral facilitator and help them strike the right balance.
For example, a negative culture can develop when employees don’t understand how their mission fits within the company’s goals. An experienced HR partner can bridge that gap by translating organizational objectives to individual goals and performance expectations, helping employees understand the rationale behind the goals and how they can contribute to achieving them. This exercise helps move the culture from two parties on opposite sides of the table to a fully aligned group working toward a shared vision.
CEOs expect an HR partner to adapt to their work style.
Some senior leaders prefer event-driven communication about HR issues: “Tell me when something happens, how you plan to resolve it, and what you expect the outcome to be.” Others want the flexibility to log into a dashboard that provides a real-time snapshot of current HR issues categorized by priority. The more hands-on the CEO’s style, the more likely they’ll want to know about emerging issues in the moment, even before the optimal resolution is identified.
An effective HR partner takes the time to understand and adapt to the CEO’s work style and communication preferences, seamlessly fitting into their processes and making it easy to work together.
CEOs expect an efficient HR process.
While most CEOs don’t delve into the mechanics of how their fractional HR partner works, they do expect their provider to apply the right tools and technologies to ensure an efficient process and the most reliable service. They’re eager to achieve their HR goals in a reasonable time, with a high ROI, and they recognize that technology often plays a crucial role in making that possible.
For example, the fractional HR partner should analyze how AI-enabled tools can streamline and enhance hiring decision-making, while developing strategies to mitigate risk. The partner should also recommend technologies that reduce HR administration, such as an online platform that makes it simpler to offer a 401k plan (one of the most highly sought-after perks).
NorthstarPMO not only understands what CEOs expect from a fractional HR partner; we bring together all the capabilities and expertise to meet those expectations. Our fractional HR service pairs your business with a trusted HR professional or team that provides the knowledge and experience to take on your HR function and apply a strategic, proactive approach to this important area of your business.
Book a discovery call to learn how NorthstarPMO can deliver everything you expect from a fractional HR partner.