Know whether the seat is really full-time yet
The question is not whether there are five days of work. There are always five days of work. It is whether there are five days of work at this level, and the honest answer is often that there are two days of senior work and three days of operating work that somebody less expensive should be doing.
If that is the case, the right move is to hire under the fractional executive rather than to convert them. It costs less, it keeps the senior judgement, and it is usually what they would advise if you asked.
Why many of them will say no
People choose fractional work for reasons that a good salary does not address. Several clients means several problems, which is intellectually the appeal. A portfolio spreads the risk of any one company failing. And many have done the full-time version already and left it deliberately.
So expect a no, and do not read it as a negotiation. The ones who say yes are usually people for whom your company is genuinely the most interesting thing on their list, which is a better reason to join than the money and a better predictor of how long they stay.
What it costs, honestly
| Two days a week, fractional | Full-time equivalent | |
|---|---|---|
| Direct cost | About £8,000 a month at £1,000 a day | Salary, plus employer NI and pension |
| On-costs | None | Roughly 15% to 20% on top of salary |
| Notice | Usually 30 days | Three to six months at this level |
| If it stops working | Ends at notice | A process, and a cost |
How to make the offer
- Ask before you build the package. Find out whether they would even consider it, and why or why not, before anyone spends time on numbers.
- Do not price off the day rate. A day rate covers their own overheads, their downtime and the risk of a client leaving. Multiplying it by five and calling it a salary reads as not understanding their business.
- Ask what they would need for it to be a better job than the one they have. Sometimes the answer is not salary but scope, a board seat, or the promise of a team.
- Give them a way to say no that does not end the engagement. The worst outcome is losing two days a week because you asked for five.
Any fee owed to a third party
If you found the person through a platform, a search firm or an introducer, read their terms before you make the offer. Conversion from a contract engagement to permanent employment is exactly where an introduction fee sits, and it is usually a percentage of first-year salary.
On this site the only fee is the one on the original search, so a company that found somebody on the open bench and later employs them owes nothing. Where we ran a paid search, the fee is 10% of annualised value and it is charged once, on the introduction, not again on a conversion.
Questions
- Can you hire a fractional executive permanently?
- Often, though many will decline for reasons a salary does not address: several clients is the appeal, and a portfolio spreads the risk of any one company failing. Ask whether they would consider it before building a package, and give them a way to say no that does not cost you the fractional days.
- How do you work out a salary from a fractional day rate?
- Do not multiply the day rate by five. A day rate carries their overheads, their downtime and their client risk, none of which apply to a salary. Benchmark the permanent role against the permanent market, then have the conversation about scope, which is often what actually decides it.
- Do you owe a fee if you hire a fractional executive permanently?
- It depends entirely on how you found them. Read the terms of any platform or search firm involved, because conversion from contract to permanent is where an introduction fee usually applies. Where the person was found on an open bench with no introduction fee, there is typically nothing owed.