Question 1

When does a startup need fractional HR?

Accepted Answer

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.

Question 2

What does fractional HR actually include?

Accepted Answer

It depends on what your company needs, but most fractional HR engagements include some combination of new hire onboarding design, performance management, compensation philosophy, manager coaching, multi-state compliance, HR tech selection, and fielding employee questions directly. The difference between me and an advisor is that I do the work — not just tell you what to do.

Question 3

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

Accepted Answer

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.

Question 4

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

Accepted Answer

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.

Question 5

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

Accepted Answer

A PEO handles the administrative infrastructure of employment — payroll, benefits, tax filings, basic compliance. That's genuinely valuable and most of my clients use one. What a PEO won't do is build your onboarding program, coach your managers, set your compensation philosophy, or help you figure out what's driving turnover. Fractional HR is the strategic layer that sits on top of your PEO — not a replacement for it. Think of a PEO as your HR software and me as your HR leader.

Question 6

How is fractional HR different from hiring a full-time HR manager?

Accepted Answer

The biggest difference is seniority and cost. A full-time HR manager at the early stage is often a coordinator-level hire — capable of executing tasks but not strategic enough to build a people function from scratch. Fractional HR gives you 15 years of senior experience at a fraction of the cost, without the benefits, equity, or long-term commitment of a full-time hire. When you're ready for a full-time People leader, I help you hire one.

Question 7

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

Accepted Answer

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.

Question 8

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

Accepted Answer

My engagements range from $2,000–$10,000/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.

Question 9

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

Accepted Answer

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.

Question 10

Do you help with investor due diligence or fundraising prep?

Accepted Answer

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.

Question 11

Can you help us prepare for SOC 2 certification?

Accepted Answer

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.

Question 12

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

Accepted Answer

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.

Question 13

What is your approach to HR or People Ops?

Accepted Answer

I build people functions that are practical, specific to your stage, and solid enough that you eventually outgrow them. That means making real decisions about compensation philosophy, performance expectations, and people infrastructure — not just implementing generic HR best practices. The goal is always to build something that scales with your business and ultimately works me out of a job.

Question 14

Do you only support tech startups?

Accepted Answer

My sweet spot is venture-backed tech startups at the Seed to Series B stage with fewer than 100 employees. That's where I've spent the last six years and where I'm most effective. I occasionally work with companies outside that profile when there's a strong fit, but I'm selective about it — I'd rather do excellent work for a small number of the right clients than spread thin across everyone.

Question 15

What are your qualifications?

Accepted Answer

15 years leading HR teams, 6 years of fractional experience working exclusively with venture-backed startups, 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.

Question 16

What's the difference between HR Advisory and Fractional HR?

Accepted Answer

The main difference is who does the implementation. In a fractional HR engagement, I'm embedded in your business — I build the programs, field employee questions, and sit in your leadership meetings. In an advisory engagement, I provide the strategic direction and your team executes. Advisory is the right fit when you have internal resources who can do the work but need a senior HR brain telling them what to build and in what order.

Question 17

Can you help with multi-state compliance?

Accepted Answer

Yes — and this is one of the most common reasons founders come to me. Hiring in a new state has downstream consequences most founders don't anticipate: different leave laws, payroll tax obligations, benefits requirements, and HR policy adjustments. Getting ahead of it before you make the hire is significantly cheaper than cleaning it up afterward.

HR Insights for Startup Founders

A BLOG BY JESSICA DONAHUE, PHR

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

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Questions? Reach Out!

hello@jessicadonahue.com

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