How Do You Choose? Full-Time Employees, Fractional Directors, or Outsourced Experts
As businesses grow, they often face critical decisions about how to fill skill gaps and leadership needs. Business growth offers three common options include hiring a full-time employee in need of training, bringing on a fractional director, or engaging an outsourced expert. Each approach has different implications for cost, control, responsibility, and skill levels.
This article explores the Business Growth pros and cons of each model and explains why outsourced experts often provide the best balance of expertise, flexibility, and cost-efficiency.
1. Hiring a Full-Time Employee
Cost:
Hiring a full-time employee involves significant expenses beyond just salary – you need to factor in benefits (healthcare, pension), payroll taxes, recruitment costs, and onboarding. Additionally, if the employee requires training, there are further costs in time and resources to bring them up to speed.
- Salary: £50,000–£150,000+ per year (depending on role).
- Benefits & Taxes: ~20–30% of salary.
- Training Costs: £5,000–£20,000 (courses, mentorship, lost productivity during ramp-up).
Control & Responsibility:
A full-time employee is fully integrated into the company, giving leadership direct oversight. However, managing and training them requires internal resources. If the employee underperforms or leaves, the company bears the risk. the more senior the person, the higher the risk, loss and potential damage.
Skill Level:
- Pros: Once trained, the employee understands company culture and processes.
- Cons: Initial skill gaps mean slower productivity; expertise may remain limited compared to seasoned professionals.
Best For:
Roles requiring long-term, day-to-day involvement where institutional knowledge is critical (e.g., core operations staff).
2. Hiring a Fractional Director
Cost:
Fractional directors work part-time or on a project basis, offering leadership without full-time salary burdens.
- Day Rate: £400–£2,000
- Monthly Retainer: £2,000–£20,000 (depending on commitment level).
Control & Responsibility:
Fractional directors provide strategic guidance but may not be as hands-on as a full-time hire. They split time across multiple clients, which can limit availability.
- Pros: Access to high-level expertise without full-time costs.
- Cons: Less day-to-day control; may lack deep integration with the team.
Skill Level:
- Pros: Experienced leaders who can quickly impact strategy.
- Cons: May not execute operational tasks; expertise could be shared with other companies.
The person often doesn’t have the back up of other professionals/departments.
Best For:
Businesses needing interim leadership (e.g., a startup needing a part-time CFO).
3. Outsourced Experts
Cost:
Outsourced experts work on-demand, delivering specialised skills without long-term commitments.
- Project-Based Fees: £1,000–£50,000+ (depending on scope).
- Hourly Rates: £100–£750 (often lower than fractional directors).
- No Benefits/Overhead: Only pay for work delivered.
Control & Responsibility:
- Pros: Retain control over strategy while outsourcing execution to specialists. Contracts define deliverables, reducing risk. Access to other experts/departments. These professionals have experience as consultants, so ‘hit the ground running’.
- Cons: Less cultural integration; requires clear communication.
Skill Level:
- Pros: Immediate access to top-tier expertise (e.g., marketing, IT, finance), and a wider support team.
- Cons: May not be invested in long-term company growth.
Best For:
Specialised projects (e.g., digital transformation, financial restructuring, marketing campaigns), or supporting longer-term activities, where full-time support is not needed.
Why Outsourced Experts Often Win
- Cost Efficiency – No long-term salaries or training costs; pay only for needed work.
- Higher Skill Level – Immediate access to specialists with proven track records.
- Flexibility – Scale up or down as business needs change.
- Reduced Risk – No HR liabilities; contracts ensure deliverables.
When to Choose Each Option:
- Full-Time Hire: For roles requiring deep company knowledge and daily presence.
- Fractional Director: For interim leadership with strategic oversight.
- Outsourced Expert: For specialised, high-impact projects with clear ROI, or for longer-term, ‘dip-in, dip-out’ projects.
Contact Lewis Frieze – our Outsourcing Co-ordinator for more information about how we can support you.