Chapter 6: The Gig Economy’s Emerging Trend: How the Fractional Employment Model Is Re-Shaping the Workplace

The gig economy has grown rapidly. A major trend within the gig economy has been the growth of gig assignments, both part and full time, as applied to the C-suite level (fractional employment). In recent years, a record number of C-suite executives have voluntarily resigned, and this rising trend is re-shaping the workplace. The fractional employment model offers benefits to both the organization and the executive. The organization can hire a C-suite-level executive as needed for a fraction of what it would cost to hire a permanent, full-time executive. Retired executives represent a talent pool who may welcome the opportunity to -periodically re-engage a new temporary work challenge. Other organizational benefits include filling a temporary leadership gap, marshalling a time-limited project, or offering support during a crisis. Given digital platforms, it also provides the organization the ability to quickly use a flexible alternative to the customary executive hire. Benefits also include cost efficiency, organizational agility, and innovation. For executives benefits include new career challenges, employment flexibility, and additional income. For organizations, drawbacks can include the executive’s lower commitment level, limited availability, lack of in-depth industry knowledge, and poor culture fit. For executives, drawbacks can include uncertainty, difficulty assimilating into a new organization and limited influence. Benefits appear to outweigh drawbacks, and fractional C-suite growth is likely to expand.