The days of independent contractors, freelancers, and part-time professionals are coming to an end. Not because the demand for their expertise is going away, but because a better term has emerged that is being widely embraced: Meet the “fractional professional.”


Evert Akkerman, an independent HR professional based in Newmarket, Ont., said he had never heard the term used prior to November 2023.

“I met somebody who was a fractional CFO, and I thought that was a brilliant way of describing it,” he said. “Since then, I’ve called myself a fractional HR consultant or advisor.”

That’s because people instantly understand what it means, said Akkerman, who runs XNL-HR, and it doesn’t come with the baggage of calling yourself a “consultant.”

“The word ‘consultant’ is sort of toxic,” he said, often conjuring images of inflated hourly rates and wordy 12-page memos.

But swap in the word fractional, and it instantly explains what the person does, where their speciality lies, and people know that you’re available for project work, he said. That’s something that fits well into the new gig economy world and it works well for both sides.

“Employers love the flexibility. They can call on fractional professionals as needed, without having to make a commitment of putting people on payroll and benefits and performance reviews,” said Akkerman. “If the relationship works, it continues. If it doesn’t work? Well, then both parties have the opportunity to find other relationships.”

Staying current

Steven Van Alstine, Vice President of Professional Standards and Education at the National Payroll Institute in Toronto, agreed that the term was a new one — gaining popularity over the last 12 to 18 months.

Payroll is a sector that is well-suited to fractional professionals, because it allows them to “deliver specialized services to multiple clients, ensuring compliance and efficiency without being tied to one employer,” he said.

One question that comes up is how the companies hiring fractional professionals can ensure they’re qualified. In the payroll world, obtaining the Payroll Compliance Practitioner (PCP) or the Payroll Leadership Professional (PLP) designation can go a long way in proving the professional’s competence, said Van Alstine.

"Having a designation like PCP or PLP elevates an individual's professional standing," he said. "It demonstrates that they have undergone rigorous education and assessment processes, showcasing their competency to handle complex payroll tasks."

They can also open the doors to more opportunities, he said. "Designations assure potential clients or employers of their professional capabilities, making them more attractive in the competitive job market."

Organizations benefit from hiring designated professionals as well. These professionals are well-versed in legislative compliance, including the Income Tax Act, Employment Insurance Act, and Canada Pension Plan Act, among others, said Van Alstine.

"Employers can be confident that designated payroll professionals will handle their payroll accurately and efficiently, mitigating the risk of legal issues and financial penalties," he said.

Certification process

Obtaining a PCP or PLP designation involves a comprehensive process. Candidates must complete a series of courses covering the full payroll cycle, from hiring to termination, and pass examinations and assignments, he said. They must also demonstrate relevant work experience and adhere to a Code of Professional Conduct.

"Maintaining the designation requires continuous professional education," Van Alstine said. "Payroll legislation is dynamic, and professionals need to stay updated with changes. Our continuing education programs ensure they remain competent and compliant."

The employer’s view: Fractional versus in-house

Christine Peters, director of consulting at Willory in Chicago — a company focused on staffing and consulting for payroll and HR — said the decision to hire someone full-time versus fractional comes down to several factors.

“The organization needs to really look at what expertise they have in-house and what expertise they’re lacking,” she said. “They’re going to have to do the analysis as to whether it warrants a full-time position.”

That includes crunching the numbers on not just salary and benefits, but also whether you need someone available full-time. Willory, for example, is using a fractional controller right now — something that is working very well, said Peters.

“We’re a small, boutique consulting and staffing firm, and we don’t need a full-time controller,” she said. “But we do need that expertise.”

Determining the number of hours needed each week or month is more than just guesswork, said Peters. It involves getting to know the client well and doing a “scoping process” to understand the work involved.

“Are they starting from scratch and need policies built out? In that case, they might need someone full time for a while,” she said. “The really nice thing about fractional is that once those main projects are kind of underway or complete, then it can be scaled back as needed.”

Another perk of using fractional professionals is that employers often get the same person each time, so they don’t have to explain everything from scratch, she said.

“Having said that, we do also like to plan to allow our people to have vacation,” said Peters. “But, in an emergency, we have other people that can jump in and help them.”

Being visible

Akkerman echoed her comments, noting that using a fractional professional does allow for that consistency in the advice being issued. He’s also a fan of being physically present in the office on a semi-regular occasion.

“It doesn’t have to be daily, but if you show up say a couple of hours every week, then people at least know you,” he said. “If you’re there at the coffee machine, it tends to make things easier. Some people can be apprehensive about calling or emailing because they think they’re interrupting your other work.”

Going fractional

For payroll professionals thinking about going the fractional route, Akkerman has some advice: Be comfortable working alone.

“You’re going to be alone for long periods of time, like chunks of time, several hours a day,” he said.

He went the fractional route in 2012 after he lost his job, which was difficult and something he “didn’t enjoy at all.”

“In retrospect, it sounds cliché, but it was the best thing that ever happened to me,” he said.

That’s because it has pushed him to become a better professional, try different things, and really stretch and push himself to learn new skills.

“Now, I’m exposed to new points of view and work with all kinds of companies,” he said. “I love the diversity. The variety of looking at various businesses, going into lunchrooms and talking with different people,” he said. “It’s not for everybody, but if you’re independent — and you don’t mind speaking up — it’s a great route to go.” 





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