The Rise of the Fractional CHRO in Australia

In recent years, Australia has seen the steady emergence of a new way of accessing senior leadership talent: the fractional CHRO. Instead of hiring a Chief People Officer (CPO) or Chief Human Resources Officer (CHRO) full-time, organisations are increasingly engaging them on a part-time, interim, or project basis. Known as fractional CPOs/CHROs, these roles give businesses access to top-tier strategic people leadership without the permanent headcount and cost of a full-time executive.

Fractional executives are already common in finance and technology. The fractional CFO and fractional CTO are well-established options for start-ups and growing companies. Now, the same model is taking off in the HR and people leadership space. And for many Australian organisations, particularly those in growth, transition, or scale-up phases, it is proving to be the right model at the right time.

What is a fractional CHRO/CPO?

A fractional CHRO or CPO is a senior people and culture leader engaged on a flexible basis. Instead of being employed full-time, they may work a set number of days each week, run quarterly or monthly strategy sessions, or take on interim projects. In essence, they bring the same strategic expertise, board-level perspective, and leadership capability as a permanent C-suite HR executive, but in a format that is more flexible and scalable.

Fractional roles may include:

• Strategic oversight of people and culture strategy
• Operational leadership of HR projects or compliance
• Board and executive advisory on people-related risks and opportunities
• Mentoring and capability uplift for internal HR teams
• Change management during growth, transformation, or executive turnover

This approach allows organisations to “dial up” or “dial down” senior HR involvement depending on business needs.

Why the interest is growing in Australia

The model is gaining traction across Australia for several reasons:

Cost effectiveness

• Not every business can justify the $250k+ package of a full-time CHRO. A fractional role gives access to the same calibre of expertise at a fraction of the cost. This is particularly attractive to small and medium-sized enterprises (SMEs) and scale-ups.

Flexibility in a changing world

• Post-pandemic, flexibility is no longer a “nice to have”, it’s expected. Many organisations now have variable workforce needs, remote operations, and shifting priorities. Fractional executives provide the same adaptability at leadership level.

Covering leadership gaps

• When a CHRO departs, takes extended leave, or when a new HR function is being built, a fractional leader can step in quickly to provide continuity.

Specialist expertise for projects

• Organisations undergoing transformation: mergers, acquisitions, HRIS implementations, or cultural change initiatives, often need senior leadership for the duration of the project, not permanently.

Capability uplift for HR teams

• Fractional CPOs are increasingly being used to mentor and coach internal HR managers and teams, providing them with the guidance and frameworks they need to operate at a more strategic level.

External perspective

• Bringing in an external fractional leader introduces fresh thinking, benchmarks from other industries, and objective advice unclouded by internal politics.
• Together, these drivers explain why the Australian market is warming rapidly to the concept.

How fractional people leadership is being utilised

Although still an emerging model in Australia, utilisation is already visible across sectors such as technology, professional services, not-for-profits, and growing regional businesses. Some of the most common engagement formats include:

• Retainer or part-time roles: e.g. one or two days a week embedded in the executive team.
• Fixed-term interim roles: typically 3–12 months to cover a gap or lead a change initiative.
• Project-based engagements: leading cultural transformation, implementing HR systems, or redesigning organisational structures.
• Advisory/mentoring: providing board-level strategic advice and supporting the professional growth of HR managers.
• Blended models: combining strategic oversight with hands-on execution of critical projects.

This flexibility is one of the biggest advantages. Organisations can access the same senior capability in whatever way best fits their context, from a light strategic touch through to deep involvement in day-to-day leadership.

Benefits for Australian organisations

Engaging a fractional CHRO/CPO offers a range of tangible benefits:

• Access to top talent without the full cost
• Faster onboarding: fractional leaders are used to stepping into complex environments quickly
• Scalability: level of involvement can flex with business needs
• Objective insight: external perspective and best-practice knowledge
• Risk management: continuity during leadership transitions, compliance oversight, and improved governance
• Capability uplift: coaching and mentoring for internal HR teams

For SMEs and mid-sized businesses in particular, fractional people leadership can be the bridge between having no HR strategy and building a mature HR function.

Challenges and considerations

Like any model, fractional leadership is not without challenges. The key considerations for businesses include:

• Authority and legitimacy: ensuring the fractional leader has the decision-making mandate to be effective.
• Integration with culture: part-time presence may take longer to build trust with employees.
• Clear scope: businesses must set expectations about deliverables and boundaries.
• Sustainability: planning how people strategy will continue after the fractional engagement ends.

Handled well, these issues can be mitigated through clear contracts, strong communication, and choosing the right partner.

A global trend landing in Australia

Fractional leadership is not unique to Australia. In the US and UK, fractional CHRO/CPO roles have grown significantly in the past decade, especially in the start-up and private equity space. As Australian businesses compete in the global marketplace, they are increasingly adopting similar models.

What’s different here is that Australia’s mid-sized organisations, those with 50–500 staff, are particularly well-placed to benefit. They are big enough to need senior HR leadership, but not always able to sustain a full-time executive.

Recruitment firms, boutique HR consultancies, and executive search agencies in Australia are already offering fractional or interim CPO/CHRO services. That means this model is moving beyond the “early adopter” phase into the mainstream.

The future of fractional people leadership

Looking ahead, demand for fractional CPOs in Australia is likely to grow due to:

• Continued economic uncertainty: businesses want flexibility in leadership costs.
• Hybrid work challenges: more strategic guidance is needed on engagement, culture, and compliance.
• Increased regulation: psychosocial hazards, industrial relations reform, and Fair Work changes are creating demand for expert oversight.
• Executive burnout: interim or shared roles can provide much-needed relief.
• More supply of talent: senior HR leaders are seeking portfolio careers, including fractional and board roles.

In other words, fractional is here to stay, and the people leadership space is one of the fastest-growing areas of adoption.

How Harrisons supports organisations with fractional CPO services

At Harrisons, we have seen first-hand the value that fractional CPOs bring to organisations of all sizes. We provide a wide range of flexible engagement models tailored to each client’s unique needs, including:

1. Strategic planning and quarterly reviews: ensuring your people strategy is aligned to business goals.
2. Monthly strategy sessions and board reporting: giving directors and executives confidence in HR leadership.
3. Weekly allocation for critical projects and coaching leaders: hands-on support when stakes are high.
4. Interim projects and change leadership: stepping in to guide your organisation through transformation.
5. Mentoring your People & Culture team: building long-term capability from within.
6. Strategy and execution options: not just advice, but the follow-through to deliver results.
7. Advisory board membership: contributing strategic HR expertise at the highest governance level.

Our team brings deep industry, geographic, and discipline experience, with consultants who have held CPO roles in large multinationals and served as non-executive directors. We are proud to include AHRI Certified Fellows and Members, bringing the highest standards of professional HR practice to our work.

Whether you need a trusted advisor in the boardroom, a mentor for your HR team, or a hands-on leader to deliver critical projects, Harrisons provides the flexibility, capability, and credibility to meet your needs.

The rise of fractional CHROs and CPOs in Australia is more than just a trend, it is part of a broader shift toward flexible, scalable leadership models that give businesses access to the expertise they need, when they need it. For organisations navigating growth, change, or increasing complexity in people management, a fractional CPO may be the smartest way to invest in leadership.

At Harrisons, we make that possible. By offering fractional people leadership across multiple models of engagement, we enable our clients to harness world-class HR strategy and execution in a way that fits their size, stage, and goals.