Scaling HR for Success

Introduction

There is a rapidly growing appreciation of the HR function on business outcomes. From managing the workforce and ensuring compliance, to fostering a positive work environment and planning for future growth, it is necessary to strengthen HR skills, capabilities and expertise to align with the diverse challenges and opportunities businesses face today. In this whitepaper, we dive into the nuances of the three engagement models in HR—project, bridge, and fractional—and discuss what they are, how to think about their merits and limitations, what makes them distinct, and when’s the right moment to engage each.

“For companies who may not yet require or be able to justify hiring a full-time HR executive, the ability to engage a fractional HR advisor is invaluable. Companies gain access to strategic HR leadership and relevant expertise but at a fraction of the cost. This flexible approach provides peace of mind and provides valuable coaching and mentorship to their internal team.”
—Shelby Wolpa, HR Advisor to Series A-C Startups

Limitations of Traditional HR

Traditional HR structures, while foundational, often fall short in addressing the dynamic and evolving needs of modern businesses.

Companies leveraging adaptable HR models can reduce HR costs by up to 40%, especially when hiring fractional Chief Human Resources Officers (CHROs) instead of full-time executives.

1. Scalability Challenges: Traditional HR teams may struggle to scale quickly to meet the demands of growth, restructuring, or rapid workforce changes.
2. Cost Concerns: Maintaining a full-time, senior-level HR executive can be expensive, especially for startups or small businesses with limited budgets.
3. Lack of Specialized Expertise: Traditional HR roles often focus on day-to-day operations, leaving gaps in high-level strategic areas like leadership development, compensation, and organizational design.
4. Time Constraints: In-house HR teams are frequently stretched thin, prioritizing administrative tasks over strategic initiatives like employee engagement or succession planning.

Benefits of Adaptable HR Engagement Models

Businesses increasingly turn to external HR engagement models for their flexibility, cost-effectiveness, and strategic impact.

With HR professionals experiencing high burnout rates, adaptable HR models can provide much-needed support, reducing workload and enhancing resilience within in-house HR teams.

1. Access to Expertise: Experienced HR professionals who can offer specialized knowledge in areas such as compensation and benefits, strategic alignment, mergers and acquisitions, talent acquisition, and learning culture.
2. Flexibility: Businesses can engage HR consultants on a part-time or project basis, allowing them to scale resources up or down as needed.
3. Cost Efficiency: HR consultants enable companies to access senior-level HR expertise at a fraction of the cost of hiring full-time executives.
4. Strategic Focus: Businesses can prioritize high-impact areas, such as navigating organizational change or enhancing employee engagement, without diverting internal resources.
5. Support During Transitions: HR consultants can fill gaps during periods of leadership transition, expansion, leaves of absence, or restructuring, ensuring continuity and alignment with business goals.

Project-Based HR Engagement Model

The Project-Based HR model involves engaging HR professionals for specific, time-bound initiatives. These projects may include tasks such as implementing performance management programs, benchmarking compensation, integrating new HR systems, conducting employee engagement surveys, or designing job architectures.

Value Add

• Specialized Expertise: Brings in HR professionals with niche skills tailored to the project’s requirements
• Cost-Effective: Avoids the need for long-term hires for short-term needs
• Focused Execution: Ensures dedicated attention to critical projects without disrupting ongoing HR operations

When to Use

• Established team lacks the capacity to address a specific challenge
• Established team lacks the expertise, particularly in a technical area such as PEOs
• For time-bound initiatives that have to be completed by a pressing deadline

Companies Suited for Project-Based Model

The Project-Based model is highly versatile and aligns with companies of various sizes and industries when they need to address specific, time-bound HR challenges. These businesses often need specialized expertise to address unique challenges or execute critical projects without requiring long-term commitment.

Types of Project-Based Engagement Models

Projects are wide and varied. They can range from foundational elements, such as designing a job architecture, or to support rapid growth initiatives, such as designing and implementing a talent acquisition capability. Often they will be focused on a specific inflection point in a company’s journey, such as graduating off a PEO, evaluating their tech stack, and ATS implementation. They can also be an effective way to test a prospective partner’s capabilities before committing to a more long-term engagement model.

“Partnering with Alotten means more than just hiring part-time support— it’s gaining access to COE resources and a seasoned team that delivers strategic depth, scalability, and exceptional value in every role we take on.”
—Philippa Strelitz, Chief People Officer & Head of Executive Coaching, Alotten

Case Example: Project-Based

Background

A tech startup faced a hiring bottleneck as it scaled. Having exhausted their referral network, the founders lacked the expertise and tools to build a recruitment process to meet their growing talent needs.

The Challenge

• Limited Recruitment Know-How: Founders were unsure where to start with structured hiring
• Urgency to Scale: Rapid business growth required skilled professionals immediately
• Exhausted Networks: Personal connections or referrals were no longer a viable talent source

Solution

Alotten Project HR consultants were brought in to design and execute a recruitment strategy and create the systems and processes to ensure it could be internally executed in the long-term. Alotten:

1. Conducted a talent market assessment to identify hiring channels
2. Created a structured recruitment framework with clear job descriptions and processes
3. Implemented an applicant tracking system (ATS) to streamline operations
4. Managed sourcing, screening, and onboarding for high-priority roles

Results

Within three months, the tech startup successfully hired 15 employees, filling crucial skill gaps in engineering and marketing. The consultant also established a scalable recruitment process and trained founders on best hiring practices, ensuring sustainable growth.

Value Delivered

• Specialized Expertise: Addressed immediate recruitment challenges with tailored solutions
• Cost Efficiency: Avoided long-term costs by engaging a consultant for a short-term project
• Focused Execution: Allowed founders to focus on core operations while recruitment was executed professionally

The Project-Based HR model empowers businesses to handle short-term demands with precision, efficiency, and cost-effectiveness. By leveraging this approach, companies can focus on their strategic goals while ensuring seamless execution of HR initiatives.

“Our recruiting services don’t stopat simply placing your next high performer; we partner with you to develop your organization’s recruitment capabilities beyond a single new hire—making talent your strategic advantage!”
—Rin Mouton, HR Consultant, Alotten

Bridge HR Engagement Model

Leadership transitions in HR can be challenging, especially when they occur unexpectedly. The Bridge HR model acts as a transitional solution for organizations facing gaps in essential HR roles, ensuring continuity and stability during critical periods of change. This model is often used when businesses are scaling, undergoing leadership transitions, or facing temporary gaps in HR leadership. Its primary value lies in its ability to manage the turbulence that often accompanies leadership transitions.

Value Add

• Continuity: Ensure seamless HR strategy and operations during transitions
• Sort Through Chaos: Provide clarity during times of uncertainty, mitigating risks and aligning priorities
• Prepare the Groundwork: Setup robust frameworks, processes and systems to ensure a smooth handover for the incoming HR leader

When to Use

• During leadership changes or HR team restructuring
• When scaling operations or entering new markets
• When addressing other temporary gaps in HR expertise or resources

Companies Suited for Bridge HR

Bridge HR is best suited for mature, later-stage companies with well-established HR infrastructure. Characteristics:

• Temporary Leadership Gaps: These organizations need interim coverage for defined roles, such as during maternity leaves or leadership transitions.
• Defined Responsibilities: The role being filled has clear responsibilities and established reporting structures.
• Stability Focus: Bridge HR professionals maintain operations, mitigate disruption, and prepare for a seamless handoff to the incoming leader.

Types of Bridge HR Engagements

1. Unplanned Engagements: These occur when an HR leader’s departure is unexpected, leaving an organization scrambling to fill the leadership void. Whether due to sudden resignation, unforeseen personal circumstances, or other emergencies, an unplanned bridge HR engagement provides immediate support, stepping in to stabilize operations and prevent delays in critical HR initiatives.
2. Planned Engagements: In cases where the departure of an HR leader is foreseen, planned bridge HR engagements offer a smart strategic choice. They allow organizations to proactively engage an interim HR leadership while they take the necessary time to
   recruit the ideal long-term replacement. This ensures a seamless transition and continuity of strategic HR functions.

Case Example: Bridge

Background

A private equity-backed electrical company with 1,000 employees faced a temporary leadership gap when their Director of HR Operations went on a 16-week maternity leave. This critical role came with defined responsibilities and reporting structures, requiring immediate coverage to maintain operational stability of the HR department.

The Challenge

The company needed someone to step into the role seamlessly without disrupting workflows while ensuring continuity of leadership. In another instance, the sudden resignation of the leader of the HR business partner organization created a similar urgent need for interim assistance.

Solution

Using the Bridge HR model, the company brought in an interim HR professional to manage responsibilities for both scenarios. The consultant maintained existing reporting structures, ensured business continuity, and effectively managed day-to-day operations. In the case of the resignation, the interim leader stayed in the role while Alotten identified and onboarded a permanent replacement.

Results

• Business operations remained stable during both planned and unplanned transitions.
• Leadership gaps were filled efficiently, avoiding delays or disruptions.
• The company had the flexibility to take its time recruiting a long-term leader.

Conclusion

The Bridge HR model provided immediate and flexible solutions, showcasing its effectiveness in planned leaves or unexpected departures. It ensured a seamless transition, mitigated operational risks, and prepared the company for long-term success.

“A Bridge HR engagement is more than a stopgap. It’s a strategic investment in leadership continuity, providing clarity, structure, and stability while ensuring organizations don’t compromise on culture, compliance, or momentum during times of change. It also creates the space to make the right long-term hiring decision—not just the fast one.”
—Erica Shelgren, Head of People Operations, Alotten

Fractional HR Engagement Model

Fractional HR involves engaging HR professionals on a part-time or shared basis. Fractional HR professionals often focus on high-impact areas like talent acquisition, leadership development, and organizational strategy, helping businesses navigate transitions or growth phases effectively. These professionals provide ongoing support or strategic guidance without the commitment of a full-time hire.

Value Add

• Cost Efficiency: Access to top-tier HR expertise at a fraction of the cost of full-time executives
• Scalability: Easily adjusts to the organization’s changing needs
• Strategic Focus: Offers high-level guidance on critical HR functions such as compliance, talent management, and organizational culture

When to Use

• For startups or small businesses that need senior HR expertise without a full-time commitment
• During periods of rapid growth or organizational change
• To address specific HR challenges, such as compliance or leadership development

Companies Suited for Fractional HR

Fractional HR typically aligns with early-stage companies that are in the process of establishing foundational operations.

• Lack of Existing Structure: These companies often lack HR infrastructure, policies, or processes.
• Need for Expertise on Demand: They require senior-level HR professionals to step in part-time and build essential frameworks without the cost of a full-time hire.
• Focus on Roadmaps: The fractional HR professional often creates the company’s first-ever HR roadmap, setting clear strategies for talent acquisition, compliance, and engagement.

Fractional HR—Remote or Onsite Engagement

Fractional HR thrives on flexibility and adaptability, excelling in both remote and on-site client engagements. While the majority of fractional HR work is effectively executed remotely, the opportunity to meet clients face-to-face and operate on-site offers unique advantages.

When fractional HR professionals are physically present, they can immerse themselves in the company’s culture and truly connect with employees. Being on-site allows for informal, organic interactions that often lead to deeper insights into workplace dynamics and engagement levels. This level of in-person integration can help build trust and foster relationships in ways that are sometimes harder to achieve remotely.

While remote execution remains a powerful and highly effective model, the added layer of engagement and nuance that comes from being onsite with a first row view of the organization’s environment can amplify results.

This dual capability underscores the value of fractional HR—offering seamless support regardless of location, while harnessing the added benefits of on-site engagement when possible. It offers a strong combination of adaptability and connection.

Case Example: Fractional, Strategic, Compensation Analysis

Background

A mid-sized company under cost pressure faced challenges with reactive compensation practices. They made one-off salary adjustments based on employee requests, anniversary dates, and fluctuating revenue goals, resulting in inconsistent pay structures.

The Challenge

• Reactive salary increases caused inequities between employees.
• Market misalignment occurred due to salary comparisons across different timeframes.
• The company lacked visibility into overall compensation spending and needed to optimize costs.

Solutions

A fractional HR professional was engaged to conduct a compensation analysis and implement a structured framework. The consultant:

1. Benchmarked salaries against market data to ensure competitiveness.
2. Analyzed current practices to identify gaps and inconsistencies.
3. Developed a standardized approach for pay adjustments based on roles, performance, and market trends.

Results

• The company gained clarity on their total compensation spend and improved cost management.
• Implemented an equitable pay structure, reducing reactive adjustments.
• Enhanced employee satisfaction by aligning raises with transparent, data-driven policies.

Conclusion

With the fractional HR consultant’s expertise, the company addressed its compensation challenges, optimized spending, and established a consistent pay structure. This approach ensured fairness, market alignment, and long-term financial stability. Fractional HR provided the strategic support needed to overcome critical cost pressures effectively.

“While the majority of our fractional HR clients are remote, the chance to step inside those four walls enhances the ability to truly plug into the culture, amplify results, and drive meaningful impact. It’s the perfect blend of flexibility and human connection.”
—Aaron Tull, General Manager and Co-Founder, Alotten

Is Fractional HR the First Strategic HR Voice in an Organization?

Fractional HR professionals may not always be the first strategic voice in an organization, but they often step in at a pivotal moment for the HR function. Early-stage companies typically rely on office managers to handle administrative HR tasks. As these businesses grow, they often hire an HR Director to address broader challenges.

However, this shift frequently reveals deeper organizational issues—effectively opening Pandora’s box. The new HR Director identifies systemic problems but is often underfunded or redirected to tactical work, leaving critical strategic gaps unresolved. Frustration builds, and the HR leader may eventually leave, creating an HR void.

Whether as the first, second, or even third attempt at solving strategic HR needs, Fractional HR provides the expertise, adaptability, and support businesses require to align their people strategies with their goals.

“We often step in during a fire. While we address the immediate symptoms, we focus on uncovering and solving the root causes, offering sustainable solutions.”
—Kent Radford, Chief Executive Officer & Co-Founder, Alotten

Insider vs. Outsider Paradigm

The Insider vs. Outsider Paradigm highlights an intriguing dynamic in how organizations perceive expertise.

As an outsider, there’s often greater freedom to address sensitive issues and challenge assumptions without being constrained by internal politics. This outsider perspective allows for candid, unbiased conversations that drive meaningful change—something that insiders may struggle with due to entrenched dynamics or perceived biases.

This phenomenon, sometimes called the “internal expert problem,” occurs when organizations overlook the expertise of their internal hires while readily embracing the advice of external consultants. It’s puzzling but common: the same advice that’s ignored internally often gains traction when delivered by an outsider. This creates opportunities for bridge or project HR consultants to step in, particularly for enterprise clients seeking strategic guidance without the internal barriers.

In contrast, Fractional HR engagements typically involve embedding HR professionals into early-stage organizations or companies without established structures. Here, the outsider status isn’t about solving the internal expert problem but about offering fresh perspectives, building foundational roadmaps, and delivering long-term impact.

Ultimately, this paradigm underscores the value of adaptability. Whether acting as an advisory outsider or transitioning to a more embedded role, strategically out-sourced HR’s ability to navigate between these positions ensures effective solutions, tailored to the unique needs of the organization. It’s a balance between delivering strategic truth and aligning with operational realities.

“A fractional HR executive brings the value of being part of the team without being entrenched in it. That unique position allows for greater objectivity and faster decision-making—especially in high-stakes moments where clarity and conviction matter most. Because we’ve walked alongside many organizations in similar stages of growth, we bring pattern recognition and cross-industry insights that help HR teams not just react, but lead with intention.”
— Mindy Honcoop, Strategic HR Advisor & Founder of Agile in HR

Leveraging Alotten to Transition Between Engagement Models

Transitioning between HR engagement models isn’t about choosing one over the other—it’s about aligning organizational needs with the right approach at the right time. Different HR models—project, bridge, and fractional—add value to businesses of all sizes and at various stages of growth. Alotten works across all industries and business life cycles, adapting its services based on unique client challenges.

This flexibility defines Alotten’s strength. Whether starting with a project for a specific need or stepping into a bridge role for temporary leadership, the team can seamlessly transition between models. With the agility to “dial up or down” based on a client’s budget, timelines, and priorities, Alotten remains agnostic to where the journey begins.

As Philippa Strelitz notes, “We often see these models blend over time—project-based work evolving into bridge roles, or vice versa. A client might bring us in to fill a temporary leadership gap, and as we build trust and demonstrate our range, we’re asked to take on targeted projects. Or we begin with a focused initiative and naturally grow into a broader, ongoing fractional role. That fluidity is part of Alotten’s strength: we meet the moment, then evolve with our clients as their needs shift.”

The key lies in outstanding delivery—starting with one project, expanding to multiple sophisticated work streams, and building trust to evolve into deeper partnerships. Alotten exemplifies how adaptability drives long-term value and operational success.

Final Thoughts

HR engagement models—Project, Bridge, and Fractional—play pivotal roles in addressing the diverse needs of organizations at various stages of growth and complexity. Each model offers unique value: Project HR provides specialized expertise for time-bound initiatives, Bridge HR ensures continuity during transitional periods, and Fractional HR provides ongoing strategic guidance, particularly for businesses building foundational HR structures.

At Alotten, we understand that no single model fits every situation or dynamic. Our flexibility, adaptability, and ability to seamlessly transition between models empowers us to meet the ever-changing demands of our clients. Whether it’s delivering focused project work, bridging leadership gaps, or establishing long-term HR roadmaps, our goal is to align organizational needs with the most effective solutions.

Ultimately, these models are not standalone options but interconnected strategies that, when applied thoughtfully, drive organizational success. By choosing the right model at the right time, businesses can optimize their HR functions, solve immediate challenges, and lay the groundwork for sustainable growth. At Alotten, we’re proud to be trusted partners in this journey, bringing expertise and innovation to every engagement.