The ‘fractional executive’ and some HR developments

At the recent birthday bash of “super woman” Rosemarie “UT” Rafael, chair of Women’s Business Council, I asked Nora Terrado, founder and former chief country executive of Carelon Global Solutions Philippines, what’s keeping her busy nowadays. She said, “I now serve as a fractional executive for select for-profit and non-profit organizations aligned with my passion and strengths, ensuring no conflict with  my board and advisory roles. Being ‘in the trenches’ keeps me engaged with industry trends and emerging challenges while broadening my perspective across sectors, operational models, and problem-solving approaches. This model satisfies my thirst for learning while maintaining professional autonomy.”

What is a fractional executive? Nora explained that a fractional executive is an experienced professional who provides leadership and expertise to organizations on a part-time or project basis instead of full time. It is a model that works well for start-ups and growing businesses that need strategic leadership but can’t afford or don’t need full-time C-suite roles.

She explained that fractional executives offer targeted expertise in areas such as scaling operations, navigating financial complexities, and driving digital transformation or mission-critical change initiatives. Enabled by technology, platforms now connect businesses with fractional talent globally, facilitating seamless collaboration across geographic boundaries. Organizations leverage this model for agility, empowering them to adapt quickly, seize opportunities, and tackle challenges. Fractional executives also mentor teams, foster leadership development, and instill best practices, leaving organizations equipped for long-term success.

She cautioned that there are challenges both for the company and the executive. Businesses need to be clear about expectations, protect confidentiality and ensure the executive fits into company culture. Fractional leaders must manage workload well and avoid conflicts of interests among others.

So, what are other developments shaping the future of work? Philippine National Bank Human Resources Head Lotus Altavas provided the following insights:

• Managing a multi-generational workforce — Workforces are getting more diverse than ever, with baby boomers, Gen X, millennials, and Gen Zs now working together. This mix brings richness in experience and ideas but also challenges communication styles, expectations, and tech savviness. The challenge is to foster inclusive leadership, open dialogues, and customized approaches to engage different age groups to avoid misunderstandings. The younger generation has high interest in corporate social responsibility and sustainability, so it is also important to create a purpose-driven organization. There is also cross-generational mentorship or reverse mentoring, where both older and younger generations learn from each other. The Gen Zs, being digital natives, are seen guiding the older generations in use of technology.

• Upskilling and reskilling for the future of work — There should be a hyper customization or personalization of trainings for employees that take into consideration the various generations present. Organizations should also have a culture of continuous learning, skilling, reskilling and upskilling to ensure engagement and relevance in a fast-changing environment.

• Rise of remote, hybrid and flexible work models — The coronavirus pandemic accelerated working from home, which has given employees better work-life balance, allowed companies to get talent from anywhere, and lowered operational costs. However, remote work requires strong communication, trust, digital tools and regular check-ins to keep connected and aligned. There should also be a mix of digital and face-to-face interactions.

• Artificial intelligence (AI) and digital tools are changing the game — AI tools that support recruitment, performance management, learning, and development are transforming HR. These tools save time, reduce errors, and allow humans to focus more on strategic work. AI transforms HR functions by automating tasks, provide data analytics and insights, and improving overall employee experience. However, they also require new skills and commitment to ethical and responsible use of data and AI.

• Support for the “gig economy” — Younger generations desire more flexibility at work so they pursue other interests. This is a challenge in terms of hiring. Companies that are progressive have embraced this and created more flexibility in their work dynamics.

• Gamification in HR by integrating game mechanics to make work or engagement activities more fun, like introducing badges and point system leadership boards, among others.

• Concern for employees’ well-being and mental, spiritual social and financial health, not just physical health

Leaders like Nora Terrado represent a new era of flexible, purpose-driven leadership. Work is evolving, whether it’s through digital tools, remote work, or navigating a multi-generational team. Companies that stay open, agile, adaptable, and more importantly, people-focused will thrive. After all, it is talented, driven employees that bring the ideas, passion and expertise that drive business success.

The views expressed herein are the author’s own and do not necessarily reflect the opinion of her office as well as FINEX.

Flor G. Tarriela is a banker by profession and an environmentalist/ gardener.