Research shows a threefold increase since 2018
As organisations continue to navigate rapid change, a new model of leadership is gaining traction – with an expert noting it’s reshaping the way companies access executive talent.
Fractional leadership – where senior execs work with multiple businesses on a part-time or project-based basis – has existed for decades, but its popularity has surged since COVID.
Data suggests this model of work has increased in popularity threefold since 2018 – with the most popular fractional executive role being the Chief Financial Officer (CFO).
As reported by Newsweek, research from Revelio Labs workforce intelligence data states that Fractional CFOs are likely in demand because startups and small businesses often need expertise in financial strategy, fundraising, and cash flow management without the expense of a full-time hire.
Fractional leadership and changing workforce trends
Sara Daw (pictured right), author, CEO and long-time advocate and practitioner of this model, agrees with this and highlights the shift is down to deeper workforce trends – namely the desire to work more flexibly.
“C-suite leaders want more variety, flexibility, essentially freedom of choice. This is what they’re getting. On top of that, people want to have greater choice in where and when they work. Fractional leadership allows for both," she said.
Fractional executives are not contractors in a traditional sense, according to Daw, but rather integrated within the business and are able to contribute at a strategic level whilst operating flexibly.
“They should be seen as inside leaders. They’re not there every day – but then, neither are many hybrid workers,” she said, “And because they’ve chosen the clients they work with, they’re deeply committed and highly engaged.”
With organisations also needing to move quickly and be more flexible, Daw also underlined the strategic capabilities of part-time leadership.
“To be more mobile, businesses need talent models that can scale and adapt. That’s where fractional leaders come in – they’re agile, embedded, and bring current market insights because they work across multiple sectors.”
With leaders being able to shift quickly between clients, they’re highly engaged and committed, Daw argued, because they’ve chosen the business they want to work with.
Increasing fractional leadership models
Daw also noted that the change in leadership structure is appealing to large corporations, too.
Describing them as a “SWAT Team” of specialists, overloaded executives can delegate high-impact initiatives to fractional leaders without adding permanent headcount.
“It’s about getting the right skills, at the right time, without having to train or manage someone heavily – because these people have sat in that chair before,” she said.
Importantly, fractional leadership may also appeal to the incoming wave of Gen Z professionals. With a strong preference for purpose, flexibility, and entrepreneurial careers, Daw sees a natural alignment.
“Gen Z isn’t aiming for a traditional full-time role – they’re building portfolios, side hustles, and careers on their terms.”
“Fractional leadership fits that mindset. The question is how to ensure they gain the deep experience needed to take on those roles eventually,” she said.
Facilitating fractional leadership in practice
Mentorship and evolving skill development will be crucial, Daw emphasised, to enable this change in management structure.
She also noted that this will be supported by team-based leadership, underpinned by fractional models – particularly as companies demand a broader set of capabilities than any one executive can realistically offer.
“We still expect C-suite leaders to be functionally expert, visionary, emotionally intelligent, tech-savvy and constantly available,” she said. “That’s unsustainable. Fractional leadership helps relieve the pressure, while building more resilient and specialised executive structures.”
While full-time roles aren’t disappearing, Daw noted she sees fractional talent as an essential addition to the HR toolkit – not a threat, but a complement.
“This isn’t about scrapping existing roles. It’s about expanding our options. If leaders can embrace ambiguity and decentralised leadership, the potential is huge,” she said. “Fractional leadership isn’t just a trend – it’s the future of executive work.”
