The signals that the seat has become full-time
- The two agreed days have become four, and the extra days are not a project but the job.
- Decisions wait for the executive's days. A function that queues for its leader has outgrown fractional cover.
- There is a team to manage. One or two direct reports fit fractional work; five do not.
- A transaction, an audit or a launch is coming that needs somebody in the room every day for a quarter.
- The board asks for the person by name in meetings they are not in.
What changes in the offer
| Fractional | Full-time | What to think about |
|---|---|---|
| Day rate through their company | Salary, employer National Insurance, pension, holiday | A day rate of £1,000 two days a week is about £92,000 a year; the full-time equivalent is not two and a half times that, because the day rate carries the risk of empty days |
| Two or three other clients | One employer | Notice to other clients is typically one to three months and the start date has to respect it |
| No equity, usually | Options | This is where the conversion offer is usually won |
| Thirty days' notice | Three to six months | Agree the notice period at conversion rather than inheriting a default |
How to make the offer
Say it early rather than at the moment of need. An executive who knows conversion is a possibility structures their other work to allow it; one who hears it as a surprise has three clients who depend on them.
Account for the income given up honestly. A good fractional executive earning across three clients is often earning more than the salary on offer, and the conversation is about equity, scope and the chance to see the work through rather than a pay rise.
Check the engagement letter. If it was written well it already says what conversion costs, including whether a fee is due to whoever introduced the person.
When to search instead
When the person in the seat is excellent at two days of judgement and would not want five days of management, and says so. Many fractional executives chose the model deliberately and a conversion offer is a compliment they will decline.
When the full-time seat needs a different kind of experience from the fractional one: a CFO who built the model but has never run a finance team of twelve, for instance. A permanent search can run with the fractional executive still covering the seat and helping to assess the candidates.
Common questions
How do I convert a fractional executive to a full-time employee?
Raise it early, agree the start date around notice to their other clients, and make an offer that treats equity and scope as the main levers rather than salary alone. Check the original engagement letter for conversion terms before the conversation.
Is a conversion fee payable when a fractional executive goes full-time?
It depends on how the person was introduced. Agencies and some platforms charge a placement fee on conversion, usually a percentage of first-year salary. Some benches charge on conversion too: on this one, a full-time appointment within twelve months of the introduction carries a fee, with any fractional fee already paid deducted. Read the terms of whoever introduced you.
What salary should a converted fractional executive be offered?
The market rate for the full-time seat, not a multiple of the day rate. A fractional day rate carries the risk of empty days and the cost of running a company, so it does not translate directly. Equity usually closes the gap between what the person earned across clients and what the seat pays.
More of them, on hiring, contracts and what a fractional engagement costs, on the fractional executive FAQ.