When does a startup need fractional HR?

Earlier than you think. Most founders come to me after something breaks — a compliance issue, a bad hire that cost them six months of runway, or a key person walking out the door. By then, we're doing damage control instead of building something solid. The sweet spot is usually when you're between 10–30 employees, recruiting is eating into your time as a founder, or you're starting to hire across multiple states. A good rule of thumb: if people problems are showing up in your week more than once or twice, it's time to talk.

What are the benefits of hiring a fractional HR advisor for an early-stage company?

The biggest one is that you get senior-level HR expertise exactly when you need it — without the cost or commitment of a full-time hire. At the early stage, you don't need a full-time People leader yet. But you do need someone who's built this before, knows what investors look for, and can keep you from making expensive mistakes with your first 10, 20, or 30 hires. Beyond cost, there's speed. A fractional HR advisor has seen what works and what doesn't across dozens of companies at your exact stage. You're not paying for their learning curve. You're getting the shortcut. And because I work with a small number of clients at a time, you're not getting a junior consultant with a checklist — you're getting an embedded partner who actually knows your business.

How can a fractional HR leader help a tech startup scale its people operations?

Scaling People ops isn't just about adding headcount — it's about building the infrastructure that makes growth sustainable. Without it, things break quietly: culture drifts, managers struggle, compliance gaps compound, and your best people start looking elsewhere. A fractional HR leader builds the foundation before those cracks appear. That means designing onboarding that actually sticks, building a compensation philosophy that holds up as you grow, putting performance management in place before you need it, and making sure your HR tech stack supports your team instead of slowing them down. The goal isn't to create corporate complexity — it's to build just enough structure that your team can scale without the founder having to hold everything together personally. That's the inflection point most startups are trying to reach, and it's exactly what I do.

What's the difference between fractional HR and a PEO like Rippling or Gusto?

PEOs are great at the transactional side of HR — payroll, benefits administration, basic compliance. I actually help clients select and implement them. What a PEO won't do is build your culture, design your compensation philosophy, coach your managers, or tell you that your interview process is why candidates keep ghosting you. Fractional HR is the strategic layer. Think of a PEO as your HR software and me as your HR leader.

How is working with you different from hiring an HR firm?

With most firms, you sign a contract and get handed to a junior team member while a senior person shows up for the pitch and quarterly check-ins. That's not how I work. I intentionally keep my client roster small so I can be truly embedded — not spread thin. When you work with me, you get me. I'm the one building your People programs, fielding your employees' questions, and sitting in your leadership meetings. There's no account manager between us.

How much does fractional HR cost — and is it worth it?

My engagements range from $2,000–$12,000/month depending on the scope of work. For context, a full-time VP of People at a tech startup typically runs $150,000–$200,000/year in salary alone — before equity, benefits, and the months it takes to hire them. Fractional HR gives you that same level of strategic expertise, scaled to exactly what you need right now. Most founders tell me the ROI shows up faster than they expected — usually in the first hire we get right or the first compliance issue we avoid.

What happens when my company is ready for a full-time HR hire?

Honestly? That's the goal. I'm not trying to be your fractional HR person forever. My job is to build People programs solid enough that your business eventually needs a dedicated, full-time leader — and when you get there, I help you do it right. That means writing the job description, coaching you through interviews, and onboarding whoever comes next so nothing falls through the cracks. I work myself out of a job on purpose.

Do you help with investor due diligence or fundraising prep?

Yes — and this is one of the areas where having fractional HR in place early really pays off. By the time you're raising a Series A or B, investors are looking closely at your people infrastructure: how you've structured comp and equity, whether your onboarding scales, and if your HR practices will hold up under scrutiny. I know what investors look for during diligence because I've helped multiple clients get there. Getting your People programs in shape before the process starts — not during it — makes a real difference.

Can you help us prepare for SOC 2 certification?

Yes — and this is one of the areas where having the right People programs in place early really matters. SOC 2 auditors look closely at your HR infrastructure: background check processes, access controls, employee security training, offboarding procedures, and whether your policies are documented and consistently followed. I've helped multiple clients get their SOC 2 certification and know exactly what auditors want to see on the people side. If you're planning to pursue SOC 2, the earlier we start building those foundations, the smoother the audit process will be.

Can you help with a one-time HR project, or is it ongoing only?

Both. My fractional leader and advisory retainers are ongoing, but I also take on defined projects when the scope is clear — building an employee handbook, designing a performance review process, running a comp benchmarking exercise, or preparing for SOC 2 certification. Not sure which you need? That's what the free consultation is for. We'll figure it out together.

What is your approach to HR or People Ops?

My approach centers on crafting exceptional employee experiences because I've seen how transformative it can be when team members feel truly valued and supported. Employees who feel empowered and appreciated consistently go above and beyond — not because they have to, but because they want to. Their enthusiasm and dedication naturally flow into every customer interaction, driving excellence across the business. When you invest in your people, you're not just building a better workplace — you're laying the foundation for extraordinary business outcomes.

Do you only support tech startups?

I specialize in partnering with high-growth startups, primarily working with Seed to Series B companies with fewer than 100 employees. While my sweet spot lies in supporting scaling organizations through their crucial growth phases, I selectively collaborate with both smaller and larger companies when there's a strong alignment between their people-focused initiatives and my areas of expertise.

What are your qualifications?

15 years leading HR teams, 5 years of fractional experience, Bachelor's Degree in Human Resources, Professional in HR (PHR) certified, Trauma-Informed Workplace Practitioner certified, Korn Ferry Leadership Architect certified, and Korn Ferry 360 certified.

How to Tell an Employee They're Not Ready for a Promotion (And Actually Help Them Get There)

LeadershipManagement

Feb 19

Written By Jessica Donahue

I know plenty of people who think they're ready to be promoted. The only problem? Their bosses disagree. I know this not because their bosses told them so, but because their bosses haven't promoted them yet.

Actions speak louder than words, right?

Some leaders avoid the topic altogether, while others make promises that remain unfulfilled month after month as their employees stay in stagnant seats with an ever-growing chip on their shoulders. The employee can't figure out why they aren't being promoted, while the manager can't figure out why in the world the employee thinks they're ready in the first place.

You might not like what I'm about to say, but I'm going to challenge you to self-reflect.

In most cases, this kind of disconnect between an employee and their leader is a leadership shortcoming.

I get it—most of us shy away from conversations where we might make someone feel bad or inadequate. Instead, we give feedback that's just vague enough to say we did it without hurting anyone's feelings. The problem with vague feedback is that it's also confusing and worthless to the person receiving it. Your employees have exactly a 0% chance of improving if you never tell them why what they're doing isn't working.

If they don't understand what's holding them back from that next promotion, that's a communication failure on your part.

Not being promoted when you think you're deserving is frustrating. But what makes the experience even more frustrating is working for a boss who can't—or won't—articulate why you're not ready, or what you need to start or stop doing. With performance conversations coming up, let's do our teams a collective favor and get specific.

Pinpoint the gaps

As a leader, you have something your employees don't: perspective. You know what it takes to be successful at the next level and what they're missing. They don't—and that's not a character flaw, it's just where they are.

Once you've established what they need to demonstrate, it's time to help them get there. Think of yourself as their coach. Your job is to meet them where they are, see things from their perspective, and help them figure out how to adjust what they're doing to achieve better outcomes.

Building a development plan starts by comparing their current role against the future role, identifying the gaps, and pinpointing the on-the-job experiences that would be most beneficial in closing them. Sometimes it's not even about closing a gap—it's about giving someone the chance to demonstrate a competency they already have. Because sometimes we assume someone can't do something only because we haven't seen them do it. And why haven't we seen them do it? Because we've never let them try.

Develop a roadmap

Select the experiences that will be most beneficial through the lens of urgency and importance—focus on what someone in that next role would need to do well, and work backward from there.

A few examples to spark your thinking:

A recruiter who wants to be a recruitment manager needs to demonstrate the ability to push back on hiring managers. Have them shadow you the next time you have that kind of conversation, then let them own the next one.

A financial analyst who wants to be a finance manager needs to demonstrate proficiency building a budget. Have them shadow you in your next budget-planning meeting, then own a small portion of the budget in the next cycle.

A programmer who wants to become a lead needs to demonstrate interpersonal skills and the ability to guide a team. Have them manage an intern over the summer.

The fact of the matter is that you won't know what your team members can do until you give them the chance to try.

Course-correct along the way

Experiential learning is fundamentally dynamic. Some things will go well, and others won't—that's expected. The best managers coach in real time, asking questions rather than giving directives.

Try these:

How do you think that went?
What went especially well?
What didn't go so well that you want to work through for next time?
What would you do differently?

Hold yourself accountable

There is nothing more demotivating than being told what you need to do to get promoted, doing those things, and still not getting promoted. Don't be this boss.

Go to bat for your people. Advocate for them even when it's inconvenient. That's your job as a leader. If you don't, don't be surprised when they accept an offer from a competitor—because if you don't show them this basic level of respect, eventually they will. It's only a matter of time.

If the issue isn't about promotion readiness but about performance that genuinely isn't meeting the bar, that's a different conversation. Here's how to have it without making it worse.

A note for founders reading this: If you're a founder who ended up here because you're the one navigating promotion conversations—because there's no one else to navigate them—that's a signal worth paying attention to. Here's how to know when your startup actually needs dedicated HR support.

Ready to talk through whether fractional HR is the right fit for your company? Book a free consultation with me here.

Jessica Donahue

How to Tell an Employee They're Not Ready for a Promotion (And Actually Help Them Get There)

Pinpoint the gaps

Develop a roadmap

Course-correct along the way

Hold yourself accountable

Questions? Reach Out!

hello@jessicadonahue.com

Based in Milwaukee, WI · Serving startups across the US & Canada

How to Tell an Employee They're Not Ready for a Promotion (And Actually Help Them Get There)

Pinpoint the gaps

Develop a roadmap

Course-correct along the way

Hold yourself accountable

How to Tell an Employee They're Not Meeting Expectations (Without Making It Worse)

How the Best Bosses Coach Their Teams (3 Questions That Work)

Questions? Reach Out!

hello@jessicadonahue.com

Based in Milwaukee, WI · Serving startups across the US & Canada