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Comparison

Fractional HR vs. an HR outsourcing firm.

HR outsourcing firms and agencies sell access to a team: you get answers to HR questions and help with tasks, often from whoever is available. Fractional HR puts one senior leader inside your company who owns outcomes.

By Mona Dhillon, Principal, FlexHR · Updated

Side by side

HR outsourcing firmFractional HR (FlexHR)
Who does the workRotating generalistsOne named senior executive
ModelHours bank or per-employee subscriptionFlat monthly retainer or fixed-price project
StrengthVolume of routine questions and adminStrategy, comp, performance, sensitive decisions
AccountabilityAnswers questionsOwns the people plan and outcomes

Which to choose

If you mostly need policy answers and paperwork, an outsourcing firm or your PEO's HR desk may be enough. If you need someone to design comp, fix performance management, lead hiring or handle a restructure, you need a senior leader.

Questions to ask any HR provider

  • Who exactly will do the work, and have they led HR at a company our size and stage?
  • Will the same person be there in six months?
  • How is pricing structured, and what happens when we need more hours?
  • What do we own at the end: documents, systems, processes?
  • How do you work with our payroll provider or PEO and our employment counsel?

Where FlexHR fits

FlexHR is one senior operator, Mona Dhillon, working directly with founders and managers on retainers from $4,000 per month or fixed-price projects from $7,500. Everything built during the engagement (handbook, comp bands, leveling, hiring process) stays with you.

Frequently asked questions

Is fractional HR more expensive than an HR agency?

Per hour it's usually higher; per outcome it's often lower, because one senior person makes decisions faster and doesn't need to be re-briefed.

Next step

Get a fit read and a starting scope within one business day.

HR Foundations Sprint $4,500 fixed · Head of People from $4,000/mo · Fractional CHRO from $8,000/mo.

Start a project

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