Welcome back to this week’s P | A | C | T news, your newsletter by Tech Talent North.
This edition of PACT Newsletter, explores the bold, brilliant, and sometimes unconventional paths shaping the future of HR. Our featured article dives into the rising trend of Fractional HR through the lens of veteran CHRO Lewisa Anciano, who shares how this agile, results-driven model is helping organizations access executive HR firepower—without the full-time price tag.
Key takeaways:
- Fractional HR VPs are essentially HR special forces—well-seasoned HR professionals with a breadth of experience and depth of domain knowledge who source problems and deliver results within given timeframes
- Given the evolution of the HR profession, Fractional HR works directly with CHROs and incumbent CRHOs, as with CEOs, CFOs and COOs; and
- For organizations looking for senior insights and results versus the financial burden of executive HR recruitment, Fractional HR can deliver upon demand at a fraction of the cost.
ADVERTISEMENT
Book your free Exploration Call to find out how we can help you expand your recruitment net, obtain LMIAs, GTS LMIAs, or Work Permits, support your employee’s Permanent Residence application, and why BC Tech companies choose to use our services again and again.
As a long-standing HR leader turned talent transformation consultant and Fractional OD & HR Executive, Lewisa Anciano’s career has mirrored and serves as a bellwether for the evolution of HR. Spanning industries globally, she also provides a perfect sounding board for understanding what paved the way for fractional HR and how it can make a major difference for organizations and CHROs in particular.
Fractional HR Best Defined by Results
Essentially defined as seasoned HR professionals who bring their experience to multiple organizations simultaneously, just what those Fractional pros do can vary widely.
“This Fractional HR thing makes for a good conversation because a lot of organizations define it differently. It’s like beauty being in the eye of the beholder that way,” said Lewisa. “It can be defined so many ways, but I think the label is the problem. There are a lot of definitions in the literature around the difference between consultant and fractional HR executive, but I would argue that, more and more, it’s bleeding. There’s a convergence and the Venn diagram is beginning to overlap more and more. It always comes back to answering, what are the needs of the business and what talent formation in HR is required to solve the problems in a smart efficient way?”
Fortunately, forging fresh ground is not uncommon for Lewisa, nor is eschewing traditional labels.
“I think it’s still uncharted territory in so many ways, so I am creating my own definition of fractional HR along the way because there are no answers for everyone at the back of the book,” said Lewisa. “In many ways, it’s very much the same any client relationship where you need to be defining the problem, how you are going to solve it and providing the services needed. What that boils down to to is how you’re going to work with each other—the who, what, where, when, how and why. So, it really depends because those answers always change.”
Domain Knowledge and Trust Provide Dual Punch
Above all else, it is a relationship grounded in not only building trust, but delivering results, most often inside agreed upon timelines, and consistently drawing upon her accrued domain knowledge.
“Trust, flexibility and domain knowledge are key to getting results. It’s not like a consultant, where you come in and do a training development program or a focus group. We are brought in at a certain inflection point during a transformation event in a company and we’re hired to push harder than a consultant,” said Lewisa. “That makes the know-how and building trust with the key stakeholders—the person who brought you in and all the people you impact—absolutely essential.”
Lewisa points out that while executive coaches have helped better shape the mindsets of leaders regarding people practices, it is the domain knowledge and practical hands-on experience that sets fractional HR VPs apart—that, along with a perfect storm of economic uncertainty and a global competition for talent. This puts the Fractional HR role apart from traditional coaching inputs in Lewisa’s mind sas people relate well to someone who’s walked in their shoes and worked in their roles.
“I think there’s this the theme of talent configuration, looking at the org structure and plugging into that talent capability in a very strategic way, but with the X factor of the technical experience of domain knowledge. I think that is the real dual punch,” said Lewisa.
Having been the head of HR five times—and lauded as the HR professional of the Year in 2015—Lewisa has ample pedigree not only problem-solving, but doing so through the lens of executive HR.
That said, Lewisa notes, Fractional HR requires a pretty flexible, “gigster”mindset to back up that pedigree and domain knowledge because every client brings different needs.
The Flexibility Factor of Fractional HR
“I see the penetration of the fractional HR VP as really a try-before-you-buy scenario for the client. The truth is that a many consultants do not have the ‘in the trenches’ HR background. They might have a lot of experience consulting, but not necessarily as a multiple time HR executive,” said Lewisa. “They’ve been at the table bucket tackling and solving problems while dealing with the politics as well, but fractional HR takes a more nuanced expertise that is harder to articulate and changes with each client. It is because you are part of the company, but not really part of the company, juggling those boundaries effectively can be complicated. You just have to trust your instincts.”
Right now that client is Sanctuary AI for Lewisa and marks another milestone in a journey that has carried her across an array of industries globally, each step helping forge the evolution of the HR profession itself. No longer tied to a desk or any one organization, she is wed only to helping leaders define the true people potential within, regardless of who that is or what shape that takes.
“Sometimes it starts off as a project—three months, six months, a year—and over time you build the relationship and talent configure accordingly. So for instance, at Sanctuary, I have been here since November last year, technically as a consultant, but really acting as a Fractional HR VP, since I have been deployed to support the COO, but at the same time supporting a new manager of people who is growing in their career,” said Lewisa, who points out much of her work is directly with CHROs/CPOs.
Fractional HR Serves Evolution of HR
“Fractional HR is not just there for CEOs or CFOs. I’ve also had the honour of being there for CHROs and incumbent CHROs who need a trusted advisor to develop them and level them up and let them increase in their own game. I see that trend rising because while CHROs have hired executive coaches before, Fractional HR brings the domain knowledge,” said Lewisa, while re-iterating the benefits of the relationship for all parties.
That aspect of partnering with in-house HR talent has been the greatest ancillary benefit.
“I really love to be able to help someone up their game and have their back. To be that voice of experience, but to really serve as a co-pilot where everybody knows the rules of engagement and works together is incredible,” said Lewisa.
“Overall, I feel lucky to get interesting work because I’m a known commodity and have built trust. I’m a straight shooter and I don’t mince words. If I have to gameplay, I tell you I’m game playing, so work with it. But I really think this is a smart, efficient way to be able to to bring special talent in when needed—from sourcing the business context to solving the problem to driving the deliverables and ensuring impact,” said Lewisa with an affordable caveat for both parties. “And if impact isn’t made, it’s just, goodbye for now and a parting of ways—without the hard feelings and massive financial costs.”
The Executive Hire Alternative: Delivering Value Alongside Results
“That said, what I’m noticing as a trend given these economic times, bluntly, is that companies are hiring more junior, up-and-coming HR people. I hate to say this, but I’ve noticed HR is losing some of its power at these executive tables and its steam as a result. Executive costs and ROI for those cost centre salaries are a big part of it,” said Lewisa. “As a result, people like me get ‘HR gigs’ because they want my expertise, but they don’t want to spend hundreds of thousands of dollars plus all the bells and whistles for senior HR talent. They rather give their home-grown talent a chance and augment with a fractional HR executive. It’s a win-win for talent development and managing costs”
This is another aspect that puts Fractional HR VPs in a growing league of their own—pitch-hitting where executive hiring costs are prohibitive.
“I think organizations are really trying to adjust to the ongoing disruption, whether it’s today’s geopolitics or just the ongoing business disruption happening everywhere. Businesses cannot afford to be how they were in the good ol’ days, so there needs to be a dynamic workforce/talent plan,” said Lewisa. “The mindset has changed from fixing the problem to finding the right people to fix the problem. As a result, businesses need someone to plug into that senior role who is an expert who’s got the experience, read a situation quickly, pivot and provide solutions in an impactful way without all of the analysis-paralysis stuff. You just have to go in, read the room, make key decisions, figure out the roadmap of solutions, the sequence of those solutions, and be able to drive, execute, influence and deliver.”
And while the range of skills and depth of experience required elevates the Fractional HR VP role above the standard OD chart, it also provides solutions at a more reasonable rate than actually hiring an HR executive, Lewisa notes.
“Gone are the days when where everyone wanted to use an executive search firm because first of all it takes a long time to recruit and second of all, people sometimes aren’t a fit given the dynamic business environment. Because of how fast disruption is coming at us, the business context has changed,” said Lewisa. “So, I think the cost efficiency you get with Fractional HR expertise for a limited period of time versus what you would pay a typical executive—base salary, options, bonuses and pension plans—is another big factor. Also, while it’s expensive to hire an executive, it’s even more expensive to exit them.”
Four Tips for Fractional Futures
As for those wondering if Fractional HR VP might fit well on their own stationary, Lewisa offers equal measures inspiration, caution and a road map.
“I’m always a bit flattered when people say they want to do what I do one day. They think I am a bit of a renegade as I get to do whatever I am truly passionate about, but the truth is that this is not for everyone, especially those who like consistency.” said Lewisa.
That said, she does offer a quartet of great insights to propel any HR professional forward:
- Number One: Whatever the question, relationship is the answer, so build relationships;
- Number Two: Build and grow your brand. Who are you? Who are you not? I know I am not for everyone. I personally like being talked about around the “water coolers” as a bit ‘outside the box’ for lack of a more polite term.
- Number Three: What are your products and services? What are you going to do? What are you not going to do? What are you known for? What is your value proposition as a product?
- Number Four: Build your expertise and experience. It’s not about age, but the range of experiences under your belt. You are building a toolkit of expertise and bullet proofing your career. Are you getting mature or large company experiences? Are you working in mergers and acquisitions? Have you done startups? Have you worked in different industries?
“Those are my tips to people who want to aspire to the Fractional HR role,” said Lewisa, who stresses as wide a range of experience as possible. “I really think you have to be industry agnostic. You have to be able to pivot. You have to assess the problem, pivot quickly and provide recommendations with confidence and humility, which is a paradox, but crucial to the role we play as Fractional HR.”
Seizing the Moment, Loving the Paradox
And while it might not be a future fit for every HR professional, for Lewisa it marks the sweet spot between personal autonomy and professional impact.
“It’s fun being a Fractional. I would never go back to being full-time because I have the best of both worlds. I feel part of the organization and core to the moment, but I’m not part of the organization,” said Lewisa. “At the end of the day, I’m trying to balance achievement and the freedom to achieve. I want to accomplish things and I want to make impact. On top of that, I want the freedom to be able to express myself, the freedom to be able to choose my life, who I work with, what that work is and to find some work life balance.”
“It’s a paradox, but it’s a beautiful paradox to have and I love it.”