Interim vs Fractional vs Permanent: A Board's Guide

Q: What is the difference between interim and fractional?

Interim executives work full time for a fixed period to deliver a specific outcome. Fractional executives work part time on an ongoing basis, giving a business senior experience it does not yet need full time.

Q: Is interim or fractional cheaper than permanent?

Interim and fractional executives are usually paid a day rate, which works out higher than the equivalent permanent salary pro rata. However, there are no long-term employment costs, and a fractional executive works fewer days. The right comparison is what the business needs to achieve and the cost of leaving the role empty.

Q: Can an interim or fractional executive become permanent?

In some cases. It lets the board see how a leader performs before committing, although the leader also has to want a permanent role.

Q: Can you help with all three?

Yes. Novo finds interim, fractional and permanent executives, and can run more than one route at the same time.

Choosing the Right Leadership Model

When a senior role needs filling, the first decision is the type of appointment.

Boards now have three main options. A permanent executive leads the function for the long term. An interim executive joins full time for a defined period to deliver a specific outcome. A fractional executive joins part time, on an ongoing basis, giving the business senior experience without a full-time appointment.

Each suits a different situation. This guide sets out the differences, the situations that suit each, and the questions boards should ask before deciding.

Interim & Fractional Specialist

Dale Perrett

Founding Director

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Interim & Fractional Specialist

Jo Watkins

Director

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Interim & Fractional Specialist

Susannah Mallaghan

Division Manager novoElan

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Interim vs Fractional vs Permanent Executives Compared

	Interim	Fractional	Permanent
Time	Full time	Part time, often one to three days a week	Full time
Length	Fixed period, often three to twelve months	Ongoing, reviewed as the business changes	Long term
Purpose	Deliver a specific outcome	Ongoing senior oversight and capability	Lead the function long term
Speed to start	Often within weeks	Often within weeks	Usually several months, including notice
Cost model	Day rate	Day rate or monthly fee	Salary and benefits
Best for	Sudden departures, turnarounds, transactions, transformation	Growing businesses and smaller portfolio companies	Stable, long-term leadership needs

When Interim Is the Right Choice

Interim suits situations that are urgent, time-limited or need specialist experience.

A senior leader leaves at short notice
A turnaround, restructure or recovery is needed

A transaction, refinancing or integration needs leading
A transformation programme needs an experienced director
A permanent search is underway and the role cannot wait

See our pages on interim CFOs, interim COOs and interim Chief Executives.

When Fractional Is the Right Choice

Fractional suits businesses that need senior experience on an ongoing basis, but not full time.

A growing business has outgrown its current finance, operations or marketing support
Investors expect board-level reporting and planning

A founder needs to step back from part of the business
A smaller portfolio company needs senior oversight
A capable team needs senior direction

See our pages on fractional CFOs, fractional COOs and fractional CMOs.

When Permanent Is the Right Choice

Permanent suits roles where the business needs senior leadership every day, for the long term.

The role is central to the long-term strategy
The business is stable enough to define the role clearly

The leader needs to build and lead a team over several years
Succession and continuity matter most

Our executive search team runs permanent searches, and can run one alongside an interim assignment.

A Short Checklist for Boards

These questions usually point to the right answer:

Can the role stay empty while a permanent search runs? If not, consider interim first.
Does the work have an end point? A defined piece of work suits interim. Ongoing senior input, part time, suits fractional.
How much time does the role really need? If the honest answer is two days a week, fractional may be enough.
Is there a capable team below the role? Fractional works best when that team can run the day-to-day without them.
Is the future shape of the role clear? If not, an interim can give the board time to define it.

Many businesses use more than one model over time. A common pattern is an interim to stabilise, a fractional executive to build, and a permanent appointment when the business is ready.

Talk through your options

Book a confidential discussion with one of our Executive Search Directors

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Testimonials

Novo identified an interim CFO who combined deep sector expertise with reassuring emotional intelligence. Their impact was immediate, governance strengthened, our equity story sharpened and teams felt more prepared for the scrutiny ahead.

Interim CFO, Pre-IPO Biotech

Novo introduced an interim COO who stabilised the business without slowing momentum. They aligned our teams, improved delivery discipline and restored customer trust. The organisation now operates with clarity and confidence.

Interim COO, High-Tech Software Company

Our interim HR director was a transformational presence. Novo understood the cultural challenges we faced and delivered someone who brought warmth, structure and credibility. Morale lifted, training improved and the organisation began to feel connected again.

Interim HR Director, International Hospitality Group

The interim MD provided by Novo was thoughtful, steady and highly effective. They handled a sensitive restructuring process with empathy and discipline, helping us stabilise performance while rebuilding trust across the organisation.

Interim Managing Director, Engineering & Manufacturing Business

Novo delivered exactly what we needed at a moment of real pressure. The interim operations director brought calm, clarity and genuine support to our teams. Confidence returned quickly and the airport regained its rhythm far sooner than we expected.

Interim, Fractional or Permanent?

Choosing the Right Leadership Model

Not sure which you need?

Not sure which you need?

Not sure which you need?

Interim vs Fractional vs Permanent Executives Compared

When Interim Is the Right Choice

When Fractional Is the Right Choice

When Permanent Is the Right Choice

A Short Checklist for Boards

Talk through your options

Testimonials

Novo identified an interim CFO who combined deep sector expertise with reassuring emotional intelligence. Their impact was immediate, governance strengthened, our equity story sharpened and teams felt more prepared for the scrutiny ahead.

Novo introduced an interim COO who stabilised the business without slowing momentum. They aligned our teams, improved delivery discipline and restored customer trust. The organisation now operates with clarity and confidence.

Our interim HR director was a transformational presence. Novo understood the cultural challenges we faced and delivered someone who brought warmth, structure and credibility. Morale lifted, training improved and the organisation began to feel connected again.

The interim MD provided by Novo was thoughtful, steady and highly effective. They handled a sensitive restructuring process with empathy and discipline, helping us stabilise performance while rebuilding trust across the organisation.

Novo delivered exactly what we needed at a moment of real pressure. The interim operations director brought calm, clarity and genuine support to our teams. Confidence returned quickly and the airport regained its rhythm far sooner than we expected.

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Interim, Fractional or Permanent FAQs