The three models compared
A permanent hire sits in a different category again: open-ended, with a full recruiting process and onboarding period, but cheaper per month over the long run if the need is permanent and full-time. Interim and Fractional are available faster and can be unwound without the risk of dismissal protection proceedings, which in Germany apply to permanent employees after six months and make an exit slow and often expensive. The honest sentence is this: if you need HR leadership permanently and full-time, and you can wait six months, hire permanently. If you need someone now, or not full-time, do not.
Decision aid: three questions
Time to start
Recruiting a head of HR takes four to six months in Germany, in the Rhine-Main region often longer, plus three months of onboarding. An interim mandate starts two weeks after the engagement, Fractional after four. In the months in between, HR does not run itself: contracts, terminations, open positions, requests from the works council (Betriebsrat, the elected employee representation). Many companies solve this with a combination: interim for the vacancy, the permanent search running in parallel, handover in the final weeks.
Cost over the term
Per month, an interim mandate costs more than the salary of a permanent employee, and Fractional costs proportionally less. Over the whole term the picture turns, because a permanent hire carries costs that never appear on the payslip: recruiting, onboarding, the months without cover, and at the end a severance or a court case if it does not work out. The calculation logic in detail: What an Interim HR Manager costs and What Fractional HR costs. For an international subsidiary there is a second line in the calculation: what headquarters pays for a German HR gap that nobody at HQ can close remotely, because works council law and German employment contracts do not travel.
How it ends
An interim mandate ends on the agreed date, with a handover and, on request, an onboarded successor. A Fractional agreement ends with four weeks' notice, no reasons required. A permanent employment relationship ends after the probation period only with a valid ground for dismissal, a notice period and, in practice, a severance payment. That is not an argument against the permanent hire. It is the reason it belongs to permanent needs and not to bridging a gap.
Combinations that happen in practice
Interim, then a permanent hire: the vacancy is filled immediately, the search runs in parallel, I sit in the interviews and hand over. Interim, then Fractional: after the acute phase, one or two days are enough to hold what was built. Fractional, then interim: a change programme comes up and one or two days no longer cover it. Project sprint, then Fractional: half a day shows where the gap is, one fixed day closes it. Every switch runs inside the existing agreement, without a restart. Which path fits is settled on the first call.
All three models from my own practice: permanent roles at corporates and growing companies, interim and fractional as Nick's Advisory. More about me
Frequently asked questions
When is a permanent hire the better choice?
When the need is permanent and predictable, and you want to build up a person who grows with the company over years. Interim and Fractional close temporary or part-time gaps. They do not replace a permanent full-time role.
Can I move from interim to a permanent hire later?
Yes. On request I actively support the search for the permanent successor and onboard them during the last weeks of the mandate. Converting me into a permanent employee is not the model.
What if I am not sure which model fits?
That is what the first call is for. You do not need to decide beforehand, and I will tell you if the permanent hire is the better option.
Is Fractional just interim on a part-time basis?
No. Interim has a planned end, Fractional an open one. Interim replaces a full-time role. Fractional adds senior experience to an existing team on fixed days.
Which model is available fastest?
Interim and scoped projects within two weeks, Fractional within four. A permanent hire takes four to six months of search plus onboarding.