Fractional executive roles – sometimes referred to as fractional directors dependent on your business structure – are growing in popularity. With scalable hours and reduced costs versus full-time hiring, board-level expertise, and leadership have become more accessible to small- and medium-sized businesses.
With the average base salary for a CTO (Chief Technology Officer) in the region of £116,000/yr in the UK (and that’s before equity considerations, bonuses, and other incentives [src: Glassdoor]), a CTO is an executive role that has until the last few years have typically been reserved for multi-million-pound turnover businesses with significant investment in technology already in place, perhaps except for founding CTOs and VC-backed startups.
With more businesses of all sizes relying on a wider range of technology to deliver services, automate processes, and improve overall operating efficiency, coupled with those opting to build teams in-house as opposed to relying on an agency or third party, the need for senior leadership and ownership of technology direction has become required even in businesses that traditionally sit well outside the profile of that requiring a CTO.
Enter: the fractional.
Cost Effective
Hiring a full-time CTO can be expensive – you have to consider the likes of base compensation, equity, bonus structures, and placement costs. The upfront investment alone can be enough to price out many, particularly those that require a CTO in place to enable the growth they want to see.
Understandably, reduced hours and a balance of commitments elsewhere mean that a fractional CTO comes at a lower cost than a full-time hire. In some cases – including with Embeddable – fractional CTOs are independently insured and equipped to hit the ground running whilst still offering protection against conflicts of interest.
Flexibility
A fractional CTO works part-time, providing businesses with the flexibility to scale their technology needs up or down as required. This can be especially beneficial for startups and small businesses that look to place a CTO early and have the role grow with their business or introduce a fractional until a full-time position is suitable.
Expertise
A fractional CTO brings a wealth of experience and expertise to the table. They have worked with a variety of businesses in different industries and can provide insights and recommendations that can help businesses stay competitive.
Objectivity
A fractional CTO can provide an objective perspective on technology decisions, which can be especially valuable for businesses that may be too close to a project to see the bigger picture. They can also help businesses avoid costly mistakes by providing unbiased guidance and advice.
Focus
By passing the technology strategy and implementation to a fractional CTO, business owners and others in senior leadership can free up their time and resources to focus on other aspects of their business in the knowledge that their technology direction is under experienced management.
Overall, a fractional CTO can provide businesses with access to top-notch technology expertise and guidance, without the expense of hiring a full-time CTO. This can be especially beneficial for small and medium-sized businesses that may not have the resources to hire a full-time CTO but still need help with their technology strategy and implementation.
