Get an HR director or chief people officer for a few days a month. They fix hiring, policies, pay and performance before small people problems become expensive ones.
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Fractional HR gives a company experienced HR leadership part-time, from a few hours a week to two days a week. It comes in three levels: an HR generalist for day-to-day tasks ($1,500–$4,000 a month), an HR director who runs the function ($4,000–$7,000), and a fractional CHRO or chief people officer who leads people strategy ($7,000–$16,000).
Most companies hire their first HR person far later than they should. Until then, people work falls on the founder, an office manager or a payroll provider, and the gaps show up as inconsistent hiring, missing policies, pay that nobody can explain, and employee issues handled on instinct.
Fractional HR fills that gap at the level you need. The most important decision is which level: a $2,000 retainer and a $12,000 retainer are different services, not the same service at different prices. A generalist keeps the basics running. An HR director owns the function and handles most problems. A fractional CHRO sits on the leadership team and shapes org design, compensation strategy and leadership development.
Fractional HR also differs from a PEO. A PEO handles payroll, benefits and compliance paperwork for a per-employee fee. It doesn't give you someone who knows your team and can tell you how to handle a difficult manager.
TL;DR
Fractional HR costs $1,500–$16,000 a month depending on seniority. An HR generalist runs $1,500–$4,000, an HR director $4,000–$7,000, and a fractional CHRO $7,000–$16,000. GoFractional's live data shows fractional CHROs averaging $176 an hour, or $6,500–$11,100 a month for about 13 hours a week.
Typical monthly retainer
$4,000–$11,000/mo
Hourly rate in live job posts
$125–$215/hr
Monthly cost in live job posts
$6,500–$11,100/mo
| Pricing model | Typical range | Best for |
|---|---|---|
| Fractional HR generalist | $1,500–$4,000 per month ($75–$150/hr) | Onboarding, policies, HRIS, day-to-day employee questions |
| Fractional HR director | $4,000–$7,000 per month ($150–$200/hr) | Running the HR function and handling most issues without escalation |
| Fractional CHRO / chief people officer | $7,000–$16,000 per month | Org design, compensation strategy, leadership development, M&A |
| Project | Fixed fee | A handbook, a compensation framework, an HRIS rollout or an investigation |
| Full-time HR manager | $175,000–$190,000 per year all-in | Enough transactional HR volume to need someone 40 hours a week |
| Full-time CHRO | $240,000–$310,000 per year loaded | Several hundred employees and a dedicated HR team |
A full-time HR manager on a $140,000 salary costs $175,000–$190,000 a year once payroll tax, benefits and recruiting are included. A full-time CHRO's base salary runs $180,000–$230,000, for a loaded cost of $240,000–$310,000. A fractional CHRO at 13 hours a week costs about half of a full-time hire.
On MentorCruise: 14 matching mentors list monthly plans from $100 to $480 (median $230). Plans cover regular calls and chat, so they suit advisory-level support. For more hours, ask for a custom engagement.
The biggest driver. Decide whether you need hands-on help, someone to run the function, or a strategic leader.
Employees in several states or countries add compliance work.
Layoffs, investigations and union matters need senior judgment and more hours.
A PEO or payroll provider handling the paperwork lets the fractional leader focus on higher-value work.
Most fractional HR engagements cover some mix of these areas, depending on level.
A review of policies, documents, classifications, pay and compliance, with a prioritized fix list.
Job levels, interview processes, offer templates and a first-week plan that new hires don't dread.
An employee handbook, multi-state compliance, leave policies and the documents you need on file.
Salary bands, a leveling framework and a clear way to answer "why does she earn more than me?".
Review cycles, goal setting, and training for first-time managers.
Handling complaints, investigations, performance plans and terminations properly.
At the director and CHRO level, the role covers strategy as well as operations.
Which roles to hire when, and how the org should look in 12–18 months.
Helping founders and managers handle hard conversations and lead their teams.
Surveys, values that show up in decisions, and fixing the issues that drive turnover.
Reorganizations, layoffs and integrations handled legally and humanely.
Choosing and setting up the HRIS, ATS and performance tools.
Headcount, attrition and people costs reported clearly to leadership and investors.
Four ways small and mid-size companies handle HR.
| Option | What you get | Best for | Typical cost |
|---|---|---|---|
| Fractional HR | A senior person who knows your team, part-time | 10–150 employees without a senior HR lead | $1,500–$16,000/mo |
| PEO | Payroll, benefits and compliance paperwork | Admin and benefits access, not judgment | $40–$160 per employee per month |
| HR consultant | A project, then they leave | A single policy, investigation or audit | Fixed project fee |
| Full-time HR manager | A dedicated person 40 hours a week | Enough HR volume to fill a full week | $175,000–$190,000/yr all-in |
Many companies combine a PEO for payroll and benefits with a fractional HR director for everything that needs judgment.
These are the most common moments companies realize they need senior HR help.
When not to hire one: Under about 10 employees, a good payroll provider and an employment lawyer on call usually cover what you need.
Informal processes stop working, and compliance requirements start to bite.
Inconsistent interviews and offers create pay gaps and bad hires that take months to unwind.
A complaint, an investigation or a termination needs to be handled correctly the first time.
First-time managers are promoted without support, and turnover is climbing.
Senior operators who have done this job. Many offer an intro call, so you can check fit before you commit.
Ask about specific outcomes, not credentials. A good candidate will tell you what didn't work as readily as what did.
Are you a generalist, an HR director or a CHRO, and which do you think we need?
Which states or countries have you handled employment compliance in?
How have you handled terminations and investigations before?
Do you work alongside a PEO or replace part of it?
What would you fix first in our current setup?
Still have questions? Email our team and we'll help you work out what you need.
Fractional HR costs $1,500–$16,000 per month depending on seniority. An HR generalist runs $1,500–$4,000, an HR director $4,000–$7,000, and a fractional CHRO $7,000–$16,000.
A fractional HR director runs the HR function part-time: hiring processes, policies, compliance, compensation, performance reviews and employee relations. They typically charge $150–$200 an hour, or $4,000–$7,000 a month.
A fractional chief people officer, or CHRO, is a senior HR executive who sits on the leadership team part-time and leads people strategy: org design, compensation strategy, leadership development and major changes like layoffs or acquisitions.
They do different jobs. A PEO handles payroll, benefits and compliance paperwork. Fractional HR gives you a senior person who knows your team and handles judgment calls. Many companies use both.
Most companies benefit once they pass 15–20 employees, are hiring quickly, or face a difficult employee situation they can't afford to get wrong.
Use the form on this page to tell us your headcount and what's not working, and we'll introduce you to HR leaders at the right level. You can also browse HR and people leaders and book an intro call directly.
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