Interim, permanent, or fractional. What’s the difference?

A few weeks ago, I found myself in a LinkedIn comment thread debating a word that’s popping up more often in 2025: fractional.

Someone had written, “Isn’t ‘fractional’ just a new word for ‘contractor’?”

That’s a fair question. But I don’t think the two are equivalent.

I replied that contractors are typically full-time additions brought in to handle a short-term increase in demand – a burst of resource to deliver a project or fill a gap. A fractional professional, on the other hand, is someone who works with a business part-time and on an ongoing basis, bringing specialist expertise without the cost of a permanent hire. It’s not just semantics — it’s about how organisations think about accessing capability.

Permanent roles

Permanent employment still makes sense when you need someone embedded in the organisation, driving long-term initiatives, and living the company’s culture day-to-day. They’re part of the team for the long haul — shaping strategy, developing people, and being measured on sustained outcomes.

But permanent roles come with commitments: salaries, benefits, career development, and (in some cases) inertia. In a fast-moving world, it’s not always the right model for every leadership or specialist need.

Interim roles

Then there are interim professionals — experienced hands who parachute in to steer the ship during a time of transition. They’re often brought in to stabilise a team, deliver change, or hold the fort while a permanent hire is found.

Interims tend to be full-time for the duration of an assignment. They bring authority, clarity, and pace, but their job is usually to deliver outcomes and then move on. They tend to be pragmatic, sleeves-rolled-up leaders who thrive in uncertainty.

(The WB-40 podcast recently did a great episode on this topic — it’s well worth a listen: Episode 334: Interim).

Fractional roles

And then there’s the rise of the fractional model — especially at C-suite level. A fractional CIO, CTO, or CMO might work one or two days a week with several organisations, providing ongoing strategic input, coaching internal teams, and ensuring continuity of expertise.

It’s ideal for growing businesses that need senior leadership but don’t yet need (or can’t justify) a full-time role. For the individual, it offers variety and flexibility. For the business, it’s a cost-effective way to access top-tier skills.

Not just semantics

So no, “fractional” isn’t just a trendy word for “contractor”. Each of these models — permanent, interim, and fractional — serves a different need. And yes, any of them could be engaged on a contract or freelance basis, but the intent and structure differ.

As I prepare to meet with and present to a group of fractional and interim CIOs and CTOs later this week, I’m reminded how work itself continues to evolve. The lines are blurring — but that also means there’s more choice than ever in how organisations access the skills they need, when they need them.

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