Main image of article Should You Become a Fractional Tech Leader?

Over the last few years, organizations have increasingly turned to part-time, specialized tech leaders to provide expertise, strategic decisions and speedy results without the full-time commitment and cost of a traditional hire.

In fact, according to The Times, the number of LinkedIn profiles mentioning “fractional executive” exploded from approximately 2,000 in 2022 to more than 110,000 by 2024, an indicator of the growing global demand and supply.

To be clear, fractional work isn’t a side hustle or part-time individual contributor role. Fractional leaders take ownership of outcomes and often work with multiple organizations simultaneously to drive major initiatives.

They are expected to hold the culture and deliver a massive impact within a few months while usually working remotely just two to three hours a day, explained Ashish Gupta, CEO and founder of ScaleUpExec, a fractional COO firm.

Given the trends (and the disproportionate number of managerial layoffs in the tech industry) you may be wondering if you should pursue fractional work.

Here are the things you should know and consider before diving in.

Summary

Despite the need for affordable top-tier managerial talent at small to mid-size companies, more professionals are seeking fractional work, which makes landing a role challenging.

Recognizing what you are good at, your transferable experience, and what skills or talents you possess that set you apart from others is vital to landing a consistent flow of new opportunities.

Companies hire fractional tech leaders to fix a specific problem or need- not to fill a vacancy or provide general advice on how to fix it (like a consultant). Forget honeymoons. They are expected to step in and execute, accomplishing what a full-time exec accomplishes on a part-time schedule.

“Speed is critical,” Gupta says. Their time with a company is limited, so their value comes from focusing exclusively on the highest-impact initiatives and moving the needle quickly.

Therefore, success as a fractional leader hinges on your ability to identify your unique strengths or niche through self-reflection and feedback. Then, you must develop a brand identity that clearly articulates your core abilities and resonates with your target audience.

The nature of the assignment and complexity of the tech landscape varies by company explained Navid Gardooni, a fractional CIO and managing partner of ALN Partners.  However, the roles are strategic, not tactical in nature. Therefore, you need to come in with an understanding of the business benefits of an initiative so you can focus on delivery.

For example, an experienced CTO, VP of engineering, or senior technical leader with deep technical skills might market themselves as an expert at guiding companies through technical crises, implementing cutting-edge technology or future-proofing IT infrastructure.

While a fractional COO with startup experience might market themselves as an expert in guiding companies to a successful IPO or merger. Finally, an experienced project and program management executive might specialize in rescuing large scale projects in specific industries or setting up a PMO.

By concentrating on a niche skill set or focus, fractional leaders can market themselves effectively, secure ongoing work and deliver maximum impact to multiple clients simultaneously.

While it is certainly possible to broaden your skillset or expand into new industries, these are byproducts - not the main goals- of fractional work.

Fractional work is ideal for senior professionals who are interested in applying what they already know and are motivated by the challenge of delivering significant impact and measurable outcomes on compressed timelines in different environments.

However, given the rapid pace of change in technology, especially from AI, you will be challenged to upskill and constantly acquire new knowledge to deliver impact as a fractional tech leader Gardooni says. So, if you crave flexibility and a career that demands continuous learning, transitioning from full-time to fractional status could be the right move for you.

What truly motivates someone is highly dependent on the stage of their career. After long careers as CIOs, CTOs, CISOs or VPs of engineering, many tech leaders are drawn to the dynamic and challenging environment that fractional work offers.

Before pursuing fractional work, you must be ready, willing and able to market yourself, leverage your professional network, manage multiple client relationships and deal with financial uncertainty.

It’s not really something you can do as a side hustle; you have to go all in because the sales cycle is long, Gupta explained. If you try to market yourself as a fractional while simultaneously looking for a full-time job for instance, you’ll get discouraged and give up he warns.

Instead, he suggests that you dedicate your time and efforts to a 90-day trial to test the waters.

Try pitching yourself to CEOs of small to mid-size companies to gauge the demand for your services and hone your approach, value proposition and messaging. If things don’t work out, you can always go back to searching for a full-time job.

Finally, consider your financial needs and risk tolerance. Data shows that rates for fractional CIOs and CTOs typically range from $150 to $500 per hour, depending on experience and complexity. Niche industries with highly regulated environments like finance or healthcare, or organizations with complex IT environments, may be willing to pay higher rates. Some companies may be willing to pay monthly retainers or bonuses for results as well.

However, if you don’t have nest egg to fall back on or are actively trying to build your career and skillset, fractional work may not provide the stability or consistent income you need to build a financial foundation.