GUIDE 2024

Best Fractional HR Services in 2024

Companies of all sizes now recognize that effective HR management is key to their success, but often lack the necessary expertise or resources to manage these tasks in-house. 

This is where fractional HR services come into play. 

These services offer expert HR guidance and assistance on a part-time basis, allowing companies to gain the advantages of having a full HR department without the associated costs and complexities.

The rise of fractional HR services can largely be attributed to the evolving nature of work. With the increased prevalence of remote work and the growth of the gig economy, traditional HR structures have struggled to keep up. 

Many organizations have been left grappling with new challenges, such as managing remote teams, implementing flexible work policies, and navigating complex labor laws. Fractional HR services have emerged as a flexible, cost-effective solution that can be easily adapted to a company’s specific needs.

Top 7 Fractional HR Service Providers 

Some of the best fractional HR service providers include: 

1. Bambee

Bambee has established itself as a key player in the fractional HR service industry, particularly for small businesses. It works on a unique model that provides a cost-effective solution by offering services that are usually the responsibility of a dedicated HR manager. This includes tasks such as policy creation, employee onboarding, and compliance support.

Bambee’s strengths lie in its dedicated focus on the needs of the client and ensuring that those needs are met with the utmost professionalism. Their experts help create a HR infrastructure from the ground up, a service that proves invaluable for start-ups and small businesses. Furthermore, they assist with compliance to ensure your business stays on the right side of labor laws, which are often complex and evolving.

Another vital aspect of Bambee’s service is the focus on creating a healthy and conducive work environment. They assist with conflict resolution and provide tools for performance management, which are crucial for maintaining a productive workforce. Overall, Bambee serves as a comprehensive HR solution that allows businesses to focus on their growth and success.

2. Jumpstart HR

Jumpstart HR has carved a niche for itself with its tailored approach to HR services. They offer comprehensive HR solutions, specially designed for small businesses and start-ups. The firm recognizes that such businesses often face unique HR challenges, and their team of certified HR professionals is well-equipped to handle these issues.

One of the core services Jumpstart HR offers is payroll management. They ensure that this critical, yet time-consuming task is handled efficiently, allowing business owners more time to focus on core operations. Additionally, they manage benefits administration, another complex area that requires specialized knowledge.

Beyond these standard services, Jumpstart HR stands out with its robust approach to recruitment and employee relations. They understand that attracting and retaining top talent is critical for business success. Hence, they employ strategies to make your business an attractive place to work. Moreover, they handle employee relations issues, ensuring a harmonious work environment.

3. CoAdvantage

CoAdvantage stands out as a fractional HR service provider, especially for small and mid-sized businesses. Their comprehensive HR solutions are tailored to meet the unique needs of these businesses, providing much-needed support in various areas.

At the core of CoAdvantage’s offering is payroll processing. They take over this vital task, ensuring accuracy and compliance with tax regulations. This alleviates the stress from business owners and allows them to focus on other crucial business aspects.

In addition to payroll, CoAdvantage offers benefits administration, risk management, and employee training and development. The administration of benefits is particularly important for attracting and retaining employees, while risk management ensures the company remains compliant and mitigates potential issues. Additionally, their focus on employee development ensures the workforce remains skilled and motivated.

4. Justworks

Justworks has made a significant mark in the fractional HR service landscape with its comprehensive platform. They offer businesses an opportunity to manage HR, benefits, payroll, and compliance all in one place. The platform is not only intuitive but also user-friendly, making HR tasks more straightforward and efficient for businesses of all sizes.

Justworks offers all the essential HR services a business needs, including payroll processing and benefits administration. Their platform makes these tasks simpler by automating them and providing useful insights to optimize these processes. This is particularly valuable for small businesses that lack the resources to manage these tasks in-house.

One of Justworks’ standout features is their 24/7 customer support. This means that businesses can get the help they need at any time, ensuring the smooth running of operations. Furthermore, their focus on compliance ensures businesses stay on the right side of labor laws and regulations.

5. Insperity

Insperity offers a full suite of HR services that make it a preferred choice for many businesses. From payroll and employment administration to employee benefits, workers’ compensation, and HR compliance, Insperity has a wide range of services designed to help businesses manage their HR functions effectively.

Insperity’s payroll and employment administration services ensure that your employees are paid accurately and on time. This not only keeps employees happy but also complies with relevant labor laws. Their services also extend to managing employee benefits and workers’ compensation, both of which can be complex and time-consuming tasks.

One of Insperity’s standout features is their performance management services. They provide the tools and guidance needed to monitor employee performance and implement improvements. This can help businesses improve productivity and employee satisfaction.

6. G&A Partners

G&A Partners is a professional employer organization that offers a range of HR services. They provide businesses with access to experts who can manage complex HR tasks like payroll processing, benefits administration, risk management, and talent acquisition.

Payroll processing is a key area of G&A Partners’ expertise. They ensure accuracy in pay and tax deductions, and compliance with all relevant laws. In addition, they offer benefits administration, a critical factor in attracting and retaining employees.

Another strength of G&A Partners is their focus on risk management and talent acquisition. They help businesses minimize risk through effective policies and compliance practices. Their talent acquisition services ensure businesses attract and retain the best talent in the market.

7. Alcott HR

Alcott HR provides comprehensive HR solutions that can help businesses grow. Their service portfolio includes payroll administration, risk management, employee benefits, and talent management. Each of these services is designed with the aim of streamlining HR processes, thereby helping businesses focus on their core operations.

Their payroll administration services ensure accurate and timely payment of wages, thereby promoting employee satisfaction. Alcott HR’s risk management services help businesses identify potential risks and implement measures to mitigate them.

One of Alcott HR’s standout features is their employee benefits management. They manage everything from health insurance to retirement plans, ensuring that businesses can attract and retain top talent. Finally, their talent management services ensure businesses have the right people in the right roles, thereby driving business growth.

Key Considerations When Choosing Fractional HR Service

Some of the key factors businesses should consider before settling with a fractional HR service provider are discussed below. 


While fractional HR services can save you money compared to hiring a full-time HR staff, costs can still vary significantly. Look for a provider that offers flexible pricing options and be sure to understand what is included in each package.

Scope of Services

Different providers may offer different services. Be clear about what your business needs, whether that’s payroll administration, benefits management, compliance assistance, or strategic HR planning.

Expertise and Experience

Look for a provider with proven expertise and experience in your industry. They should be up to date with the latest HR trends and regulations and able to provide references from satisfied clients.


The best fractional HR services offer user-friendly technology platforms that streamline HR tasks and provide useful analytics. Consider how well a provider’s technology aligns with your current systems and processes.


As your business grows and changes, so too will your HR needs. Choose a provider who can scale their services to match your evolving needs.

Frequently Asked Questions (FAQs)

Below are answers to common questions about fractional HR services. 

What exactly are fractional human resources?

Fractional human resources, also known as fractional HR services, provide businesses with part-time access to HR professionals. This model allows a business owner, particularly those running small businesses, to have the expertise of a full-time HR professional without the associated cost.

How can a fractional HR team contribute to our company culture?

A fractional HR team can significantly influence your company culture by developing policies that promote a positive work environment, create job descriptions that attract the right talent, and implement professional development programs that encourage employee growth.

What is the role of a Chief Human Resources Officer in a fractional HR setup?

A Chief Human Resources Officer (CHRO) in a fractional HR setup plays the role of an HR consultant, providing strategic oversight of HR functions. They might not be involved in the day-to-day operations, but they ensure that HR strategies align with the company’s overall goals.

What is the difference between fractional HR and HR outsourcing?

Fractional HR and HR outsourcing both provide businesses with external HR expertise, but they differ in their implementation. HR outsourcing generally involves delegating all HR tasks to a third-party service, while fractional HR services offer more flexibility, allowing companies to select which tasks they need help with.

What HR challenges can be addressed by a fractional HR consultant?

A fractional HR consultant can address a wide range of HR challenges, including recruitment, compliance with labor laws, employee performance management, benefits administration, and more. Their expertise can help streamline HR functions and prevent costly mistakes.

As a business owner, when should I consider outsourced HR or fractional HR services?

As a business owner, especially of a small business, you might consider outsourced HR or fractional HR services when you lack the time or expertise to manage HR tasks, when your HR functions are becoming too complex, or when you need to focus more on your core business operations.

Josh Fechter
Josh Fechter is the founder of HR.University. He's a certified HR professional and has managed global teams across 5 different continents including their benefits and payroll. You can connect with him on LinkedIn here.