Everyone Needs a Side Hustle These Days—Even Executives
Fractional leadership is on the rise
Side-hustling is not limited to traditional freelance roles: Since 2018, the share of new executive positions that mention fractional work has tripled.
The most popular fractional executive roles concern CFO and CMO roles, which can be more easily outsourced.
Relative to other executives, fractional executives are more likely to be women. About one third of fractional executives have an MBA, and almost half of them have previous experience in the tech sector.
The COVID-19 pandemic has reshaped the way we work, with more workers embracing flexibility. This shift has not only changed where work happens but also how individuals engage with employers. Our previous research has shown that an increasing number of American workers are taking on multiple jobs, with women leading the charge. In today's newsletter, we show that this trend extends beyond creative and traditional contractor roles to executive positions, where fractional executives are on the rise.
As reported by Newsweek, Revelio Labs workforce intelligence data shows that since 2018, the proportion of workers starting a new executive position who reference fractional work when describing their role has more than tripled. In 2018, only 5 out of every 1,000 new executive positions mentioned fractional roles. However, this figure surged between 2021 and 2023, reaching 18 per 1,000 in 2024.
Next, we explore the type of work fractional leaders undertake by analyzing the professional headlines they use to describe themselves. The most common roles are Chief Financial Officer (CFO), appearing in 18.8% of fractional leaders’ headlines, and Chief Marketing Officer (CMO), at 14.3%. Fractional CFOs are likely in demand because startups and small businesses often need expertise in financial strategy, fundraising, and cash flow management without the expense of a full-time hire. Similarly, companies may turn to fractional CMOs to support marketing growth, brand strategy, and customer acquisition on a flexible basis. Both roles offer a way for businesses to access experienced and specialized leadership as needed, without committing to a permanent executive.
Our previous research found that women are leading the way in side-hustling. When analyzing the gender composition of fractional versus regular executives, we find that fractional executives are more likely to be women than are other executives. This suggests that the broader trend of women seeking flexibility in the workplace also extends to executive and high-impact roles.
What other characteristics define fractional executives? Two key factors stand out. First, fractional executives tend to be highly educated, with nearly 30% holding an MBA. Second, they primarily come from the tech sector, with almost half having prior experience in the industry. Finance and consulting are also common backgrounds, with 29% and 24% of fractional executives having worked in these respective fields. The strong representation of executives with tech backgrounds in fractional roles may be linked to the industry's emphasis on innovation, rapid scaling, and lean operations. Many tech professionals, particularly those with startup or scale-up experience, are accustomed to working in environments where leadership needs to evolve quickly, making fractional roles a natural extension of their career paths.
The rise of fractional executives highlights how flexible work is reshaping not just traditional jobs but also leadership roles. As more professionals seek autonomy and companies embrace on-demand expertise, fractional work is becoming a viable alternative to full-time executive positions. This shift reflects a broader move toward more adaptable and dynamic ways of working.
