Why More Executives Are Freelance: The Rise of the Fractional C-Suite

According to recent projections, more than one in two U.S. workers could go freelance by 2028, and with 60 percent of freelancers earning more than in their previous full-time role, it’s not difficult to see why. The shift from more traditional career paths to freelancing is so pronounced that estimations suggest the gig economy is growing anywhere between 3 to 15 times faster than the traditional job market, and, by 2028, it’s estimated that the number of U.S. freelancers will reach approximately 90.1 million, indicating a broader shift towards freelancing across various professions. Interestingly, the picture of the modern freelancer isn’t what most imagine. 

While typical freelance roles in graphic design, copywriting and marketing remain common, many in leadership positions and the C-suite are increasingly moving towards freelance careers. This has given rise to a revolutionary new paradigm for leadership—fractional leadership, which allows businesses to bring in executives for a fraction of their time instead of on a traditional full-time basis. The benefits of fractional, flexible leadership are numerous, providing world-class expertise to growing businesses as needs arise. This relieves the burden on overstretched leaders internally, while offering previously overworked executives a significantly improved work-life balance, the flexibility to decide their own workloads, and the opportunity to work for multiple companies simultaneously on a freelance basis.

But why are so many people in leadership roles forgoing traditional career paths in favor of freelance, portfolio-led careers?

Economic Pressures Driving Fractional Leadership

The past year has seen incredible disruption for businesses across the U.S. and globally. Companies have had to contend with tariff uncertainty, the lingering impact of the COVID-19 pandemic, inflationary pressures, skills shortages and unprecedented geopolitical volatility.

These external pressures have given rise to a renewed focus on strong leadership that can steer businesses through market turmoil, with their contribution scaling up and down according to business need and resources. The modern world of work means businesses now have access to talent that, while still technically freelance, can sit at the executive table, speak the language of investors and turn data into powerful insight that drives real growth. Subsequently, business owners increasingly realize the benefits of accessing freelance C-suite talent when, where and how they need it. If ongoing market trends are any indication, the demand for freelance leaders offering fractional service is only likely to grow, particularly as macroeconomic conditions remain uncertain.

The fractional leadership model provides a significant competitive advantage for smaller, owner-managed businesses that want to make the most of stretched resources during times of ambiguity. A fresh perspective on business challenges can be extremely powerful for businesses of any size, and a capable freelance leader, of which more and more are entering the market every day, can step in quickly, provide innovative solutions and adapt at pace to shifting priorities. There are also significant opportunities for larger organizations to bring in additional C-suite expertise to work alongside an existing leader, who is overstretched or requires a complementary skillset. For example, the expert touch of an experienced freelance Chief Financial Officer (CFO) can be invaluable during a funding round or merger & acquisition (M&A) activity. 

The New Global Talent Market

It’s been five years since the onset of COVID-19-induced lockdowns forever reshaped our shared relationship with work. The changes this brought—most notably the continued long-term adoption of remote and hybrid working—have been a key driver in the growth of freelance leadership roles. A few years ago, many companies were reluctant to hire a leader who could not report to the office full-time. In comparison, today’s modern world of work is unrecognisable, even with increasing return-to-office (RTO) mandates. While a degree of on-site presence is encouraged to build trust and rapport with their teams, freelancers and fractional leaders are able to operate effectively in a virtual world. They hold team meetings via video call, access cloud-based file management systems and collaborate with colleagues across a range of digital project management and productivity tools. 

Another contributing factor is the increasing ease of access to international talent, driving a truly global job market. Sectors with low barriers to entry and fragmented markets—many with exciting, growing businesses—are increasing demand for talented freelancers, particularly at the leadership level, who can lend their talents to companies across the globe. A truly global playing field means freelance leaders can better fit their career into their broader life ambitions, such as balancing work with a desire to travel. Roger Castle, an early adopter of fractional working and former full-time VP of Finance/CFO, cites numerous, relatable first-hand reasons why many leaders opt to freelance. “I’ve become a master of not missing out on the fun stuff,” Castle says, emphasizing the ability to travel more and pursue hobbies. Though he still works full, 8-hour days, Castle organizes his schedule “around things important to me,” he says. “I’m energized and enthused.”

The Future of Work Is Fractional

There is little doubt that, particularly for growing, owner-managed businesses, the future of leadership is flexible. Critically, the growing freelance market is not just financially driven but instead born from a desire for strategic alignment and adaptability, for both the fractional leader looking to adopt a different way of working and businesses looking to leverage world-class leadership talent on their own terms amidst ever-shifting markets. As the business world evolves, more companies will adopt this mindset across the C-Suite—from finance to marketing and even people development. 

For those in leadership roles, this freelance lifestyle is an opportunity to move firmly away from the corporate mould, realign life priorities and work on interesting and varied projects where their knowledge and expertise bring real value to those who need it most. In a world in which business success is more than ever based on knowledge, trust and expertise, freelancing, particularly at the C-suite level, represents a growing movement that proves outstanding leadership can be delivered in a bold new way. The benefits of this approach, for organizations and leaders alike, are potentially transformative. 

Sara Daw is Group CEO of The CFO Centre and The Liberti Group, and the author of Strategy and Leadership as Service – How the Access Economy Meets the C-Suite, which explores the fractional leadership trend.