The logic behind the day rate
The day rate for Fractional HR sits in the same range as for an interim mandate, because the same person with the same experience turns up. What changes is the number of days: one or two fixed days a week, so four to nine days a month. The monthly cost lands at one fifth to two fifths of a full-time mandate.
Only days actually worked are invoiced. A public holiday on the fixed weekday is moved or dropped without charge. Being reachable between the days for anything urgent is included and is not billed by the hour. That forces both sides to set priorities, and that is precisely what makes the model work. A company that needs five days of HR leadership a week should not buy two and hope. A company that needs a senior decision-maker once a week should not hire full-time and pay for the other four days.
What to compare the day rate with
A part-time head of HR on a permanent contract often takes as long to find as a full-time one, because fewer senior candidates want a part-time role. Fractional HR is ready to start after about four weeks of lead time, with four weeks' notice instead of an employment relationship.
Per day, Fractional costs more than a part-time permanent employee, as with interim. It becomes the better deal through lead time, flexibility and risk: no months without senior HR experience, no cost when the need drops, no severance when it ends.
One day or two: the cost question
A worked example: one fixed day for a company with 80 employees
An HR team of two handles contracts, payroll and recruiting. What is missing is someone who sparrs with line managers on people decisions, lifts the compensation system to the next growth stage, and brings the works council (Betriebsrat, the elected employee representation), which is just being formed, into the picture properly from the start. A full-time role would be too much for 80 employees, and a part-time head of HR with that experience is rare at this size.
Fractional with one fixed day: the day rate times four to five days a month. In return, one day a week of decisions, sparring and build-out, and in between an HR team that works to agreed priorities. After three months the compensation system stands, the first works council meeting is prepared, and line managers know whom to call about difficult cases. Bring your figures to the call and the calculation is done.
Changes, pauses, notice
Fractional agreements run from three months with an open end and four weeks' notice on both sides. The volume can be adjusted within the running agreement, from one day to two or into a full-time interim mandate when a change programme comes up. A pause, for example over the year-end, is possible by arrangement. What does not work: hourly billing or on-call availability, because the model lives on fixed days. If that is what you need, a project sprint is the better fit. The legal side, so the model stays clean under German social security law: Fractional HR and employment status.
Fractional and interim models from my own practice, among others Roles in corporate groups, mid-sized companies and scale-ups. More about me
Frequently asked questions
Is Fractional cheaper than Interim?
Per month, yes, because fewer days are booked. The day rate itself differs little, since the same experience is brought in on both models.
Is there a minimum commitment?
One fixed weekday over the agreed term, not billable by the hour. That gives both sides something to plan around.
How does it compare with a part-time permanent hire?
Finding a part-time head of HR takes as long as a full-time search, often longer, because the candidate pool is smaller. Fractional is ready to start within about four weeks and can be ended with four weeks' notice.
What happens when a public holiday falls on the fixed day?
The day is moved or dropped without charge. Only days actually worked are invoiced.
Can I start with one day and move to two later?
Yes, that is the usual path. The volume is adjusted within the running agreement, without a restart.
Are there travel costs with Fractional?
Not in the Rhine-Main region. For presence days in other cities they are agreed separately. With one day a week, a hybrid pattern with on-site presence every other week is often the practical answer.