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 Meeting Expectations (Without Making It Worse)

LeadershipManagement

Feb 28

Written By Jessica Donahue

I don't like telling employees they're not doing a good job any more than I like being told that I am not doing well. Delivering this news is arguably the worst part of being a team leader. Eventually, the time will come when someone on your team isn't pulling their weight, and you will be faced with a choice. You can choose to ignore it, compensate for it, work around it, and accept the toll it will take on the broader team's morale, or you can opt to have the tough conversation.

Spoiler alert—the former always ends up being more damaging than the latter.

As an HR leader, I have coached plenty of fellow business leaders through these discussions. The first time I had to put one of my own direct reports on a Performance Improvement Plan (PIP), it was suddenly a much more difficult conversation for me to imagine having. The temptation to ignore it and hope it went away was very real.

Why? Because it feels so much more personal when it's your direct report.

Looking back, this was an exercise critical to my evolution as a leader. Having one of these conversations myself afforded me a deeper appreciation for how difficult it is. It made me a more compassionate HR partner to the managers I supported.

When someone on your team is not performing up to expectations, here are my recommendations for having this difficult, albeit necessary, conversation.

Give specific examples of missed expectations

The worst thing you can be in a performance conversation is vague, because this leaves room for assumptions. You should strive to get as specific as possible with what your team member did or did not do that failed to meet expectations. Almost obnoxiously specific. Dates, times, quotes — all helpful reference points to include.

"On Monday, 11/30, the sales figures you presented in our weekly review meeting were not accurate."

Speak in terms of 'worries'

The Brag, Worry, Wonder, Bet (BWWB) framework from Steve King is one of my favorite ways to structure feedback. When we worry about someone, it is because we care. And when we express that worry out loud, it is a gesture of caring. From the employee's perspective, hearing their boss is worried about something they've done is a much less threatening approach to feedback than a direct critique.

"On Monday, 11/30, the sales figures you presented in our weekly review were not accurate and I'm worried that this reflected poorly on our team's credibility."

Highlight the implications of their performance

In all likelihood, you're addressing something your team member is or is not doing because it has implications for other people, work, or results. But your team member may not have a full appreciation of those implications. Laying it out for them helps them understand why change is necessary and what's actually at stake.

"On Monday, 11/30, the sales figures you presented in our weekly review were not accurate and I'm worried that this reflected poorly on our team's credibility. This could negatively impact senior leadership's confidence in our team's effectiveness at a time when headcount is already being scrutinized."

Outline what 'meeting expectations' looks like

Sometimes employees don't have a clear picture of what good looks like. They understand that whatever they did or didn't do failed to meet your expectations, but have you told them what would have? Don't assume they know.

"Next time you present sales figures, my expectation is that everything will have been double or triple-checked in advance of the meeting so that all figures are reported accurately."

Confirm understanding—and then confirm again

The single biggest problem with communication is the illusion that it has taken place. Be sure that the employee can articulate a firm understanding of what they should be doing differently when similar situations present themselves in the future.

"What are some actions you think you could take differently next time to make sure everything is accurate?"

Acknowledge the psychology of the moment

The second an employee hears they're being put on a performance improvement plan, they will not fully hear anything else you say in that meeting. They just won't. It's an emotional conversation, and it's hard for any of us to think clearly when we're flooded with emotion. Have the conversation, but also have all of your examples and expectations outlined in a document that the employee can take with them to review when they're not overwhelmed.

Check in the next day

Set the expectation that you want to revisit the conversation with them the following day, once they've had time to process. It shouldn't be a re-hashing of the original conversation — it should give the employee a chance to ask clarifying questions once they've calmed down and can think more clearly.

Ask how you can best support them

Yes, it is their responsibility to remedy the situation, but you should be alongside them as their leader. It's in the best interest of everyone involved that your employee embraces the feedback and turns things around. The best managers coach their teams through moments like this—not just deliver the news and walk away.

"What do you need more or less of from me to be successful?"

What this conversation actually sounds like (putting it all together)

Here's how these steps look strung together in a real conversation:

"I want to talk about the sales figures you presented in our Monday meeting. I've noticed this has happened a few times recently, and I'm worried about the impact it's having on our team's credibility with leadership—especially right now when headcount is being scrutinized. Going forward, my expectation is that all figures are double or triple-checked before any meeting where you're presenting to the group. I want to make sure you have everything you need to do that consistently—what would be most helpful from me?"

Giving tough feedback is never fun. Sometimes there will be tears, and that's okay. After all, this is someone's career we're talking about.

Remember that your employee has exactly a 0% chance of improving if you never tell them that what they're doing is unacceptable. You owe it to them as their boss to increase those odds.

Sometimes the employee will improve, and other times they will not. If the situation escalates to the point where you need to conduct a formal investigation or take disciplinary action, here's a step-by-step guide to conducting workplace investigations that walks you through the process.

It won't always work out, but at least you will know you gave that person the very best chance to succeed.

A note for founders reading this: If you're a founder who found this post because you're the one having these conversations—because there's no one else to have them — that's one of the clearest signals that your company needs dedicated HR support. Here's how to know when your startup actually needs it, and what kind makes sense at your stage.

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 Meeting Expectations (Without Making It Worse)

Give specific examples of missed expectations

Speak in terms of 'worries'

Highlight the implications of their performance

Outline what 'meeting expectations' looks like

Confirm understanding—and then confirm again

Acknowledge the psychology of the moment

Check in the next day

Ask how you can best support them

What this conversation actually sounds like (putting it all together)

Questions? Reach Out!

hello@jessicadonahue.com

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

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

Give specific examples of missed expectations

Speak in terms of 'worries'

Highlight the implications of their performance

Outline what 'meeting expectations' looks like

Confirm understanding—and then confirm again

Acknowledge the psychology of the moment

Check in the next day

Ask how you can best support them

What this conversation actually sounds like (putting it all together)

What Fractional HR Leadership Actually Does for a Startup (And Why It's Worth It)

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

Questions? Reach Out!

hello@jessicadonahue.com

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